strategic analysis of the asia pacific paint and coating industry

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Strategic Analysis of Paint and Coating Industry (Asia Pacific) Pooja Verma Consulting Analyst Chemicals, Materials & Food practice 7 June,2011

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Frost & Sullivan Analyst Briefing on the Asia Pacific Paints and Coatings Market

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Page 1: Strategic Analysis of the Asia Pacific Paint and Coating Industry

Strategic Analysis of Paint and Coating Industry (Asia Pacific)

Pooja Verma Consulting Analyst

Chemicals, Materials & Food practice 7 June,2011

Page 2: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Table of Contents

3

4

1 ASIA PACIFIC ECONOMIC OUTLOOK 3

ASIA PACIFIC PAINT & COATINGS MARKET ANALYSIS 42

CONCLUSION 10

INDUSTRY HIGHLIGHTS 7

5 ABOUT PAINT FROST 11

Slide No.

Page 3: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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0

1

2

3

4

5

6

7

2005 2006 2007 2008 2009 2010 2011

Nom

inal

GD

P ($

Bill

ion)

ASEAN China India Japan South Korea

Macro economic indicators - GDP and GDP growth rate

Source: IMF.Org

GDP (USD billions) GDP Growth Rate (%)

ASEAN

China

India

Japan

South Korea

0% 2% 4% 6% 8% 10% 12%

2011 2010

Page 4: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Asia Pacific Paint & Coatings Market Analysis – Revenue Share and Revenue

Source: Frost & Sullivan

APAC Revenue Share ( billions $ ) APAC Revenue ( billion $ )

Asia Pa-cific35%

Rest of the World65%

2006 2007 2008 2009 2010 2011 20120

10000

20000

30000

40000

50000

60000

CAGR:

11%

Page 5: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Asia Pacific Paint & Coatings Market Analysis – Market Revenue by Segments

Source: Frost & Sullivan

APAC Revenue Share (%) Market Revenue by Segments (%)

Asia Pa-cific35%

Rest of the World65%

Automotive - OEM Coatings

10%

Auto-motive - Refinish

Coat-ings4% Can

Coat-ings1%

Coil Coat-ings3%

Decorative Coatings27%

Marine Coatings5%

Other Indus-

trial Coat-ings15%

Powder Coat-ings11%

Protec-tive

Coat-ings12%

Wood Coatings12%

Page 6: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Asia Pacific Paint & Coatings Market Analysis – Market Revenue by Countries

Source: Frost & Sullivan

APAC Revenue Share (%) Market Revenue by Countries(%)

Asia Pa-cific35%

Rest of the World65%

India8%

China61%

Philippines

1%

Indonesia2%

Vietnam1%

Thailand2%

Malaysia1%

Sin-gapor

e0%

Hong Kong0%

Taiwan1%

Japan12%

South Korea

6%

New Zealand1%

Australia3%

Page 7: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Industry Highlights - Key Participants by Countries in APAC

South KoreaKCC

SamhwaInternational Paints

JapanNippon Paint

KansaiSKK

TaiwanYungchi

Akzo NobelKansai

PhilippinesBoysen

Charter ChemicalDutch Boy

ChinaAkzo Nobel

PPGNippon Paint

IndiaAsian Paint

KansaiBerger

MalaysiaAkzo Nobel

Nippon PaintJotun

Hong KongAkzo Nobel

Nippon PaintSKK & Camel Paint

ThailandTOA

Akzo NobelNippon Paint

VietnamAkzo Nobel4 Oranges

Jotun

SingaporeAkzo Nobel

JotunNippon Paint

IndonesiaAkzo Nobel

Nippon PaintPropan Raya

Paint and Coatings Market: Top Three Participants by Country (Asia), 2010

Source: Frost & Sullivan

Page 8: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Source: Frost & Sullivan

Increasing investments in infrastructure

Greater Economic Growth in APAC region

Growth in end-user industries

sectors- construction,

automotive etc

Green Technology

Lowest Impact

Highest Impact

Industry Highlights - Key Drivers for Paint and Coatings industry in APAC

Page 9: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Source: Frost & Sullivan

Competing Alternative Materials

i.e.: glass, steel for exterior

Lowest ImpactHighest Impact

Rising Raw Material Prices

Slower adoption of technology

Rising oil prices is a big concern!

Industry Highlights - Key Challenges for Paint and Coatings industry in APAC

Page 10: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Key Conclusions

High GDP growth rate

Countries in Asia Pacific are growing at a high GDP growth rate which is a promising factor for paint and coatings industry

High Growth of Industry

Key Challenges

Key Drivers

Paint and Coatings revenues in Asia Pacific have grown with a CAGR between 11-12% which is very high

High growth of construction and automotive sectors is expected to drive the paint and coatings industry growth in the coming years

Rising prices of raw materials is a big concern for the paints and coatings industry

Page 11: Strategic Analysis of the Asia Pacific Paint and Coating Industry

PAINT FROST(A Growth Partnership Service dedicated to the Paint & Coatings industry)

Page 12: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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www.PaintFrost.com is a one-stop-solution to get key insights on the Asia Pacific paint & coatings market.

This is a very user friendly, interactive web base service, specially designed to support your business and organizational decision-making activities.

Most comprehensive updated coverage covering 14 countries, 10 paint segments and key metrics on market size, technology, market shares and more…….

Accessible worldwide, 24/7 through a username and password

Provides unbiased independent information supported by extensive primary research and qualitative insights from paint experts who continuously track the market.

Provides history as well as future trends and forecasts for the APAC paint market

Easy to use report formats and data can be exported to Excel

Key Deliverable:

What is www.PaintFrost.com

Market Sizing

Summary Reports

Company Profiles

Growth Indicators

+ + +Paint Frost =

Page 13: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Next Steps

Interested in the above deliverable and want to know more?

• Please log on to the Paint Frost website at www.paintfrost.com Click on the ‘Contact Us’ button and leave us your details

Additionally you can also register for the following:

Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news)

Frost & Sullivan’s next Chairman’s Series on Growth: (http://www.frost.com/growthapac)

Page 14: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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Page 15: Strategic Analysis of the Asia Pacific Paint and Coating Industry

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For Additional Information

Donna JeremiahCorporate CommunicationsAsia Pacific+603 6204 [email protected]

Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]

Pooja VermaConsulting AnalystChemicals, Materials & Food+603 6204 [email protected]

Nisha SundrumCorporate CommunicationsAsia Pacific+603 6204 [email protected]