asia pacific paint & coatings market feb09

Download Asia Pacific Paint & Coatings Market   Feb09

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  • 1. We Accelerate Growth Asia Pacific Paint & Coatings Market What Lies Ahead! Sheila Senathirajah, Senior Industry Analyst Chemicals, Materials & Food Practise 17th February 2009 2009 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the prior written approval and consent of Frost & Sullivan.
  • 2. Poll Question 1 During this economic downturn, do you anticipate the APAC Paint & Coatings industry to fair better than the Western region Paint & Coatings industry? Yes No February 2009 2 APAC Paint & Coatings Market
  • 3. Table of Contents Slide No. 1 ASIA PACIFIC ECONOMIC OUTLOOK 3 2 ASIA PACIFIC PAINT & COATINGS MARKET ANALYSIS 7 3 MARKET DRIVERS & RESTRAINTS 12 4 INFLUENCING END-USER INDUSTRIES 15 5 INDUSTRY FOCUS 18 6 ABOUT PAINT FROST 22 February 2009 3 APAC Paint & Coatings Market
  • 4. ASIA PACIFIC ECONOMIC OUTLOOK February 2009 4 APAC Paint & Coatings Market
  • 5. Macroeconomic Scenario Asia Pacific Economic Outlook Impact of crisis on APAC Paint & Coatings Market The Market Regions GDP (Annual Percent Change) for 2003-2013 outlook. The credit crisis has contributed to a significant shift in the 2009 regional Frost and Sullivan anticipates that global economy will continue to deteriorate in the first half of 2009 This will be followed by a slow recovery in 2H 2009 The Paint & Coatings industry in Asia will be affected by the global slowdown although we forecast this will not hit the region as severely as in developed countries In the midst of the crisis we forecast Asia will also benefit as coating companies in the US and EU come under significant cost pressures This presentation will review the current crisis, its impact on the Paint & Coatings industry and the opportunities that will be created in 2009 February 2009 5 APAC Paint & Coatings Market
  • 6. Macroeconomic Scenario Asia Pacific Economic Outlook GDP Growth of Key Economies 14 The Market Wor l d Regions GDP (Annual Percent Change) for 2003-2013 12 GDP Growth Eur opean 10 Uni on % Nor th 8 Amer i ca Chi na 6 Indi a 4 SEA 2 0 Source: http://www.imf.org 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (World Economic Outlook, Oct 2008) Growth is slowing down worldwide but nonetheless, China will remain an engine for East Asia and even for global growth. February 2009 6 APAC Paint & Coatings Market
  • 7. Macroeconomic Scenario Crude Oil Prices Crude oil prices 1998-2008 Crude oil prices Year 2008 Source:edition.cnn.com/2008 Effect of crude oil prices on the Paint industry Crude oil prices peaked in 2008 More than 40% of the APAC paint industry is based on solvent based paints. Price increases of paint products ranged from 10-20%, higher for solvent based paints.. Oil prices have gone down this year and this is likely to soften the price impact. February 2009 7 APAC Paint & Coatings Market
  • 8. ASIA PACIFIC PAINT & COATINGS MARKET ANALYSIS February 2009 8 APAC Paint & Coatings Market
  • 9. Asia Pacific Market Size APAC Paint & Coatings Market By Value ( 2003-2007 ) 40 35.2 35 29.7 30 The APAC paint 24.6 USD Bill 25 market makes up 21.6 20 19.5 approximately 30- 35% of the global 15 paint market !! 10 5 0 2003 2004 2005 2006 2007 Source: Frost & Sullivan Market Situation 2007 APAC paint market was valued at USD 35.2 Billion at 13.0 Million tonnes CAGR for 2003-2007 = 15% 2008- Slowdown began to be felt in 2H. Q4 negative growth. Overall growth rate at only 8-10%. 2009- Continued slowdown. Overall estimated growth rate 5-6%. 2010- Market to slowly recover. February 2009 9 APAC Paint & Coatings Market
  • 10. Asia Pacific Market Split By Country Value Split By Country Overview China- 2nd largest market in the world after US. ThailandAustralia M alaysia 2% 5%N Zealand ew Paint production has tripled in last 5 years to 2% 1% approximately 6Mtonnes Korea Vietnam 9%