The architectural coatings industry, including paints, primers, sealants, colorants, and varnishes for both indoor and outdoor applications, remains the dominant force in the global coatings market. According to international consulting firm Chem Quest Group, the global market for decorative architectural coatings is expected to reach 27.7 billion liters (approximately 38.36 million tons) by 2024, with a market value of 8.1 billion euros (approximately 84.8 billion USD).
According to data disclosed by the China National Coatings Industry Association, the global coatings and painting market is expected to be valued at 202 billion USD in 2024, a year-on-year increase of 2.5%; production is expected to reach 48.9 billion liters (approximately 67.73 million tons), a year-on-year increase of 0.4%. By category, decorative coatings account for 57%, OEM coatings (industrial protective coatings, powder coatings, wood coatings, etc.) account for 30%, and specialty coatings account for 13%.
The architectural coatings submarket accounts for nearly half of the global coatings market, with the following regional contributions: Asia-Pacific 52%, Europe 16%, Latin America 12%, North America 11%, and the Middle East and Africa 9%. The compound annual growth rate (CAGR) from 2024 to 2029 is expected to be 2.8% in terms of production and 5.0% in terms of value, driven mainly by sustainability, urbanization, and economic expansion.
The architectural coatings market is dominated by diversified multinational companies, with Sherwin-Williams being the largest supplier globally. Other major players include AkzoNobel, Nippon Paint, Asian Paints, ICI, Jotun, Kansai, PPG/Versaflex, BASF, BaiseXiong, Lepermai, Hempel, and others. Additionally, there are many regional suppliers such as SanKeShu, Beixin Jiahuali, Asia, Badeshi, Dabao Paint, Earl Coat, Shikoku Chemical, Shendeo, DAW, Benjamin Moore, Kelly Moore, Lancot, Nalu Paint, KCC, etc.
Notably, PPG recently successfully sold its North American architectural coatings business to American Industrial Partners (AIP) for $550 million. The business was renamed Pittsburgh Coatings Company (PPC) and is expected to achieve a sales revenue of $1.878 billion in 2024. Meanwhile, Sherwin-Williams reached a final agreement with BASF Group in February this year to acquire BASF's Brazilian architectural coatings business (Suvinil) for $1.15 billion in an all-cash transaction. This business is expected to have sales of approximately $525 million in 2024, and the transaction is expected to be completed in the second half of 2025.
In 2024, the top 20 global architectural decorative coatings brands will have a total sales revenue of $48.088 billion, accounting for 47.94% of the global architectural coatings market. Among these, Sherwin-Williams, Nippon Paint, PPG, AkzoNobel, Asian Paints, BaiseXiong, Lepermai, SanKeShu, Earl Coat, and Jotun rank in the global top ten; additionally, two Chinese brands, SanKeShu and Jiahuali, also made the list.
As Malte Nitz, Global Strategy Head for BASF's Dispersions and Resins Sustainable Development and Market Intelligence, emphasized, "The current economic situation, characterized by inflation and persistently high interest rates, is creating uncertainty within the industry. As a result, customers are increasingly focusing on reliable and resilient supply chains, as well as sourcing locally from trusted partners to ensure stability amid these external challenges."
According to data from the German Paint and Ink Association, by 2024, architectural coatings will account for 47% of the total coatings market. Dr. Nicole Borho, Sustainability Manager for DAW’s portfolio, explained, "We expect a slight increase in the global market size by about 2% by 2025. Architectural coatings are in line with the overall trend and show no significant deviation from the development of the overall coatings market, meaning their market share will remain roughly unchanged."
Similarly, Henrik Bergstrom, Senior Vice President of PPG Architectural Coatings for Latin America, EMEA, and Asia Pacific, estimates the global demand for architectural coatings to be 8.55 billion euros (approximately 89.5 billion USD), accounting for about 50% of the total coatings market. "According to market research, overall architectural coatings demand typically follows GDP trends as it is closely related to economic activities such as residential and commercial construction and renovation."
As Chem Quest noted, the main growth drivers for architectural coatings are building and construction activities. Growing GDP levels stimulate demand for housing, government-funded housing projects, and renovation expenditures. Although international suppliers dominate the market, regional suppliers remain strong competitors in their respective regions. Waterborne coatings continue to lead technological innovation due to their sustainability advantages.
Environmental regulations and customer preferences are driving the industry towards sustainable and bio-based alternatives. Dr. Borho highlighted the impact of the EU Green Deal on product development: "In the EU, the Green Deal is driving a change in the principles of material development, paving the way for innovative, resource-efficient coatings and building products: considering sustainability standards at the design stage of products, and materials not being seen as waste at the end of their lifecycle, but as new raw materials."
Dr. Borho added that, in addition to low-emission and preservative-free coatings used indoors, the focus is shifting toward economically competitive material formulations that reduce the carbon footprint. "For this purpose, bio-based raw materials or secondary raw materials can be used, contributing to climate and circular economy goals. Initial solutions are available, such as using linseed oil or plastic containers made from post-consumer recycled plastic."
As Dr. Robert Heger, Vice President of BASF’s Architectural Coatings and Architectural Polymer Dispersions, stated, "We focus our sustainability efforts on two key levers: reducing our own CO2 emissions and enabling our customers to reduce their carbon emissions." In Europe, BASF is developing sustainable, CO2-reducing bio-based architectural coatings solutions in line with REACH regulations and European Green Deal legal requirements.
PPG is also investing in sustainable alternatives. As Bergstrom explained, "Although there are currently no regulatory requirements for sustainable products or products containing bio-based materials, we are continuing to evaluate bio-based and bio-mass balanced alternatives." He mentioned that their architectural coatings business in Europe has identified a significant opportunity to meet market demand for products with sustainability benefits. "With the introduction of low-carbon footprint coatings, we are offering low-cost, high-performance, low-carbon, bio-based coatings to the mass market."
Climate change is significantly affecting the demand for architectural coatings, especially exterior wall coatings. Extreme weather conditions such as heatwaves, heavy rain, and frosts are increasing the demand for coatings with cooling properties and enhanced durability.
Dr. Borho pointed out, "The increase in climate change and extreme weather events is driving the demand for climate adaptation and protection measures, leading to the continuous increase in demand for special coatings with cooling effects." As Dr. Heger explained, BASF is actively addressing these needs: "Today, we offer a variety of different exterior coating products for nearly every region and climate zone. Increasingly, extreme weather events are also being considered, including heavy rains, hail, frost, strong sunlight, and air pollution." As Bergstrom noted, PPG is focused on providing smart coatings that go beyond decorative functions: "The development of smart coatings—those designed to offer more than just aesthetic functions—presents a major opportunity for the industry. These coatings can provide enhanced features, such as temperature regulation in building environments."
Geopolitical tensions are shaping supply chain dynamics and affecting raw material costs. The Russia-Ukraine conflict and global trade disputes have led to rising energy and raw material costs, especially in Europe.
Dr. Borho explained, "The Russia-Ukraine conflict has caused energy prices to skyrocket, leading to higher costs for energy-intensive raw materials in Europe, while additional global trade conflicts have made key raw materials more likely to be subject to punitive tariffs, driving up costs further, such as titanium dioxide." The future economy is expected to recover, particularly in infrastructure sectors. Strategies to strengthen the resilience of European countries may include expanding renewable energy and investing in energy-intensive raw material production bases.
As Malte Nitz emphasized, "We have the ability to offer innovative high-performance product solutions for global customers, including a comprehensive circular product portfolio that reduces the carbon footprint of products, technical expertise, and a global production network, helping to mitigate risks associated with escalating geopolitical tensions and ensuring supply security for our customers to rely on in their green transformation."
PPG highlighted the impact of tariffs, with Bergstrom stating, "Architectural coatings are typically produced locally and supplied to local markets, so they are less affected by geopolitical factors such as tariff changes. However, they can be significantly impacted by changes in raw material tariffs, as the global trade volume of raw materials is much higher." Bergstrom continued, "This is currently the case after the EU imposed tariffs on titanium dioxide imports from China. These tariffs will negatively affect the competitiveness of the EU coatings industry relative to coatings produced using Chinese titanium dioxide outside the EU, where anti-dumping duties do not apply."
The architectural coatings market remains a key part of the global coatings industry, steadily growing under the influence of economic activities, sustainability initiatives, and the demand to adapt to climate change. While multinational companies continue to lead the market, local firms remain strong competitors. Regulatory pressures and changing customer preferences are accelerating the development of bio-based and low-carbon solutions, while geopolitical factors continue to pose challenges. The coatings industry is responding to these trends through innovation, sustainability, and supply chain resilience.
