How Pandemic Affected the Global Paint Manufacturing Business

We all are well aware of the fact how Covid-19 has impacted our lives. Like many other industries, the paint industry has been majorly hit by the pandemic. The strict lockdown in the Indian paint industry witnessed a steep low in an unprecedented manner. Though it could be said that the paint production units began in a staggered manner, the rise in the number of cases and the lockdown had created a great problem for the paint and coating industries. Let us first understand a little more about the paint and coating industry in India.

The Indian paint industry was expected to reach approximately $8 billion in the financial year 2019-20. However, it faced one of its lowest performances in many years. The Indian paint and coatings industry has seen demand nose-dive in the last four months in an unprecedented manner.

The coming financial year also looks quite grim for the coating industry.

At present, the rate at which Covid cases are coming is slowing down but if we take a look at the past, there were lakhs of cases coming every day. The situation made it quite hard for the castor oil derivatives producers involved in painting and coating.

As per one of the directors in the paint industry, Saurabh Agarwal, he fears the industry would not be able to perform well in the coming year.
However, with every dark side, there is a hidden ray of hope. Although globally the paint and coating industry is hit badly, it is expected to rebound. Let us look at the few growth drivers.

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• Increase in incomes and better housing conditions

The rising urban population has raised intense pressure to upgrade and promote more construction of new housing, which will ultimately bolster the paint requirements, giving a push to the market.

Even the rising incomes and enhancing housing conditions especially in the Asia/ Pacific region. If we solely focus on China, it is alone expected to account for 53% of the entire demand. If the following trend continues to favour the construction activities, it will provide a great opportunity for paint and coating suppliers.

• The rapid development in the non-residential area

There has been an expansion in the construction of the non-residential sector that will help the Asia/ Pacific paint market to boom. The rapid increase in India will be able to take the race forward after the Chinese market slows down. The Indian market has the potential to increase up to those of the US by the year 2024.

• Increased Construction Activity in India

Significant growth is expected to be seen in the manufacturing and construction sectors of India. The demand for paint is going to be among the fastest-growing markets throughout the coming years due to the great boost in residential and non-residential building construction. The country is also investing a great deal in new infrastructure and manufacturing. The recent record of fastest construction of the road is a great example for the same. In the present scenario, the paint and coating prices in India are one of the lowest, which allows a great opportunity for value growth. The increase in income will also allow the consumers to select from higher quality paints.

• The Trending DIY

In developed countries, especially the US, while people were locked behind the doors due to the Covid-19 pandemic, a lot of residents started investing their free time in repainting and remodelling activities. The trend of residential, remodelling and repainting applications is expected to witness a 60 per cent surge in the demand for architectural paint worldwide.

• Increase in the Motor Production

During the covid, the motor production industry saw a major decline. As everyone was locked inside the doors, neither the people were using the vehicle for transport nor the production companies were able to manufacture. The rebounding of the motor production sector will also help the paint and coating industry to bounce back as soon as possible.

• A significant rise in developing countries’ infrastructure

There will be an overall increase in the global paint industry as many developing countries are focusing on creating new infrastructures. Even the building of traffic marking paints are used to protect transportation infrastructures such as airports and bridges.

Although the coating and paint industry has seen a tough time, many growth drivers show a positive side. Ambuja Solvex Pvt. Ltd. is one of the major castor oil and its derivatives manufacturers based in Gujarat. If you are looking for raw materials for coatings that are derived from dehydrated castor oil, blown castor oil, and other castor oil derivatives, with a promise of the best quality, get in touch with us.