Citation
(2013), "A profile of the central Asian paint industry", Anti-Corrosion Methods and Materials, Vol. 60 No. 4. https://doi.org/10.1108/acmm.2013.12860daa.022
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited
A profile of the central Asian paint industry
Article Type: Conferences, training and publications From: Anti-Corrosion Methods and Materials, Volume 60, Issue 4
IRL announced publication of a new report, A Profile of the Central Asian Paint Industry, one in a series of ten reports assessing the global market for paints and coatings.
This report examines the smallest paints and coatings market in the Central and Eastern European region, comprising of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. As is conventional for IRL’s reports, it segments each country market into nine coating segments and also provides market forecasts to 2016. It has been revealed that there is no particular demand for marine coatings in this region and, therefore, this segment has been omitted in this report.
The market for paints and coatings in Central Asia has been estimated at approximately 261,500 tonnes in 2011. The market is growing at a higher than average growth rate of 6.2% p.a. and will reach a level of some 352,740 tonnes by 2016. In general terms, there is a trend of increasing well-fare of consumers in Central Asia, leading to increasing purchasing ability for paints in the region. Another factor contributing to the positive trend in the market is growing outputs of major downstream industries. The real GDPs in the leading country markets are forecast to grow at more than 6% p.a. over the next five years.
The two economies of Kazakhstan and Uzbekistan dominate the regional market and occupy 48% and 39% of the Central Asian market for paints and coatings, respectively. The Kazakhstani paint market is a fast growing market in the region, with a paint per capita consumption of 7.5 kg/head.
The Uzbekistani paint market shows a slightly slower pace of growth and is characterised by a lower paint per capita consumption indicator of 3.7 kg/head:
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With the revival of the Kazakhstani construction industry, the demand for architectural coatings is expected to grow at a rate of 8% p.a. over the forecast period.
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There is a steady growth in the consumption of water-based architectural paints, which currently occupy 70% of all paints consumed by the construction industry in Kazakhstan. The market is driven by growing interest and sophistication of consumers in the ecological properties of paints.
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The industrial coatings segment in Kazakhstan is driven by growing demand for coatings from the automotive and general industry.
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The architectural paints for DIY applications are prospering in Kazakhstan and Uzbekistan, with the professional architectural paints taking only 20-30% of the total segment.
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Uzbekistan offers good prospects for automotive OEM coatings due to the growth in production output of the Uzbekistani automotive industry.
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The Uzbekistani furniture industry is one of the fastest developing in the country and industrial wood coatings are poised for good growth of 8% p.a.
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The markets of Azerbaijan, Kyrgyzstan, Tajikistan and Turkmenistan are widely represented by imported materials, with local production taking a negligible portion of the total market.
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These are developing markets, with estimated low indicators of paint per capita consumption of less than 2.5 kg/head.
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The country markets are dominated by architectural coatings, which take more than 70% of each respective market.
In the overall market, there is a trend of an incremental increase in the segment of water-borne paints, related to changing consumer preferences. The highest increase in demand is predicted for the automotive OEM and plastic coatings segments, driven by growing electrical goods production, construction and the automotive industries.
The coating industry participants can utilise several marketing opportunities to create their competitive strategies, such as innovations and product development in the water-borne architectural coatings area, promotion of medium-grade paints, finding new customers for the imported materials, optimising costs, and enhancing marketing efforts.
“A Profile of the Central Asian Paint Industry” is available now from IRL. Sections of the report, priced individually, are available to purchase online at our website: