Significant contraction in the demand for paints and coatings in the first half of 2020
In the first six months of 2020 the global market lost about -9 % in value, while the TOP 11 global producers lost over -10 % in sales revenues compared to 2019. Companies serving the decorative paint market fared better than suppliers focused on industrial coatings.
Chem Research, a specialised market research and consultancy firm, completed a recent analysis of the growth of the global market for paints and coatings in the first half of 2020. In this context close attention was paid also to the sales performance of the TOP 11 global public companies that serve about 50 % of this market. The half-year results show a global market contraction of about -9 % in Euro value, while the TOP 11 companies lost over -10 % in sales revenues.
The manufacturing sector showed some signs of recovery
To some extent the stabilising effect of the decorative paint demand compensated for the dramatic volume losses in the industrial coating sector. In many parts of the world building construction and especially the DIY activities continued despite the severe lockdown measures imposed in the second quarter of 2020. Starting in June 2020 the manufacturing sector showed some signs of recovery.
This positive market trend differed across the regional markets and the classes of industrial goods produced. The diverse evolution of the two segments – decorative paints and industrial coatings – has led to a shift in market shares and portfolio composition. The decorative paints gained nearly 4 % market share the at the expense of industrial coatings in the first half of 2020 compared to 2019.
CHEM Research’s detailed examination of the TOP 11 producers’ half-year 2020 sales shows similar patterns. On average the 2020 half-year sales of the TOP 11 companies’ sales revenues were about -10 % lower than in the first half of 2019. In year-over-year comparison the TOP 11 companies’ sales dropped about -2 % in the first quarter and -17 % in the second quarter of 2020.
Service tip
Raw material prices are a significant option to increase economic efficiency of coatings companies. The European Coatings price ticker offers up-to-date information on raw material prices to help coatings manufacturers achieve better deals with their suppliers.
