According to a new report published by Allied Market Research titled, “Egypt Paints & Coatings Market by Resin Type, Technology, and Product Type: Opportunity Analysis and Industry Forecast, 2020–2027,” the Egypt paints & coatings market was valued at $2.3 billion in 2019, and is projected to reach $3.6 billion by 2027, growing at a CAGR of 7.9% from 2020 to 2027. Paint & coating products are applied on various surfaces, equipment, & other areas in interior & exterior applications of all types of residential, commercial, industrial, and institutional premises. Paint & coating products are used in various decorative applications including emulsions, enamel paints, distemper, cement paints and others. It is also used in industrial applications including powder coating, coil coating, wood & furniture coating, machinery & equipment and others. These products provide benefits including high performance, protection, durability, abrasion resistance, weather resistance, extended life of equipment, corrosion resistance, and others.
Rise in building & construction activities and development of infrastructure projects in the industries such as marine, tourism, manufacturing, automotive, aerospace, and others, is the key factor driving the growth of the market during the forecast period. In addition, increase in demand for paints & coatings products from heat & UV resistant applications is projected to fuel the market growth in the upcoming years.
However, fluctuation in raw material prices that is used in the production of paints & coatings is expected to hamper the growth of the market from 2020 to 2027. On the contrary, stringent government regulations toward environmental pollution and rise in awareness toward eco-friendly paints & coatings products are expected to create opportunity in the Egypt paints & coatings market.
Depending on resin type, the acrylic resin segment held the highest market share of around 28.3% in 2019, and is expected to maintain its dominance during the forecast period. This is owing to rise in demand for acrylic coatings from the construction industry applications such as finishing for roofs, decks, floors, bridges and other applications.
In addition, increase in demand for acrylic paints & coatings from marine & vessels, electrical, machinery & equipment, metals and other applications is projected to fuel the paints & coatings market growth during the analyzed time frame.
On the basis of technology, the solvent-based technology segment holds the largest market share, in terms of revenue and volume, and is expected to maintain its dominance during the forecast period. This growth is attributed to increase in demand from exterior coating applications where weather conditions are varying more frequently. In addition, solvent-based paints & coatings offer several advantages such as durability, strength, resistance to scratches & abrasions, resistance to severe weather conditions, quick drying and others, which in turn is expected to fuel the demand for this type of paints in the upcoming years.
On the basis of product type, the decorative paints & coatings segment holds the largest share, in terms of revenue and volume, and is expected to grow at a CAGR of 7.2%. This is owing to rise in demand for paints & coatings products used in the applications such as interior wall painting, floor coating, wood & furniture coating, and other decorative purposes, owing to increase in consumer interest toward renovation of existing & old infrastructure.
The Egypt paints & coatings market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the report include Akzo Nobel N.V., BASF SE, Jotun A/S, MIDO Coatings, KAPCI Coatings, PACHIN, PPG Industries Inc., Sipes Egypt, Orient Paints, and GLC Paints. Other players operating in the Egypt paints & coatings market are SCIB Chemicals S.A.E., ESNA Chemicals, Sigma Paints, Hempel A/S, National Paints Factories Co. Ltd. and others.
COVID-19 impact on the market
The Egypt paints & coatings market is anticipated to witnessing steady and sluggish growth for the year 2020, owing to the outbreak of the COVID-19 pandemic. The outbreak has negatively impacted various industries across the country. In addition, ongoing projects from various industries such as construction, oil & gas, manufacturing, and others are on hold or cancelled, which has affected the sales of paints & coatings products. This further resulted in restraining the growth of the paints & coatings market till the effect of pandemic becomes less.
According to the International Food Policy Research Institute, Egypt. This pandemic may reduce Egypt’s national GDP by 0.7-0.8% for each month in 2020, owing to temporary shutdown of industries. Thus, it is estimated that step-by-step end of the lockdown will boost the economy, which in turn is expected to fuel the paints & coatings market in the Egypt in the upcoming year. Thus, all these factors result in sluggish growth of the Egypt paints & coatings market in 2020, and is expected to increase by the end of the first quarter of 2021.
Key Findings Of The Study
- In 2019, the acrylic resin segment accounted for around 28.3% of the share of the Egypt paints & coatings market, and is expected to maintain its lead throughout the forecast period.
- In 2019, the solvent-based technology segment accounted for around 52.13% of the share in the Egypt paints & coatings market, and is expected to maintain its dominance till the end of the forecast period.
- In 2019, the decorative paints & coatings segment is accounted for 76.22% market share in 2019, and is anticipated to grow at a rate of 7.2% in terms of revenue, increasing its share in the Egypt paints & coatings market.
- Water-based technology is the fastest-growing segment in the Egypt paints & coatings market, expected to grow at a CAGR of 7.4% during 2020–2027.
- In 2019, enamel paints dominated the Egypt decorative paints & coatings market with more than 56.6% of the share, in terms of revenue.