Paint Thinner Market Expected to Reach $16.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Paint Thinner Market," The paint thinner market was valued at $11.0 billion in 2021, and is estimated to reach $16.4 billion by 2031, growing at a CAGR of 4.1% from 2022 to 2031.

Paint thinner is a solvent that is used to make paints less viscous. It is mixed in a proper ratio in paints (depending on the paint type) to liquefy and make the paint easier to spread. Paint thinners are used as cleaners and degreasers to remove the remains of paints and varnishes from brushers, sprayers, applicators, and other surfaces. In addition to this, it is widely employed in conjunction with several paints & coatings for enhancing the aesthetics and corrosion resistance purposes.

Increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, have led the building & construction sector to witness a significant growth where paint thinner is widely employed for painting and cleaning of metallic structures, window frames, and others. Furthermore, factors such as increasing disposable income, technological upgrades, and spurring rise in original equipment manufacturers (OEMs) have led the automotive sector to witness a significant growth. Paint thinners are widely used along with various paints sector for enhancing the spread ability of paints on vehicle surfaces. Furthermore, it acts as a degreaser used for cleaning of various auto parts in automobile sector. These factors altogether are anticipated to fuel the growth of the paint thinner market during the forecast period.

However, habitual exposure to paint thinners and their types can cause eye irritation, liver disorder, and skin irritations in humans. In addition to this, chronic exposure to paint thinners may lead to kidney function disorder, cardiovascular, and gastrointestinal disorders, and it has an adverse effect on the central peripheral nervous system of workers who have been working in the chemical industry and getting frequent exposure to paint thinners. Furthermore, paint thinners get accumulated in the sediments of rivers, lakes, streams, and coastal areas. These chemicals can build up in the fatty tissues of fish and other aquatic animals in high concentrations, which may pose a serious health issue to people who have been eating PCBs deposited seafood frequently. These factors together may hamper the growth of paint thinners in the market.

On the contrary, the increasing awareness for using eco-friendly products has surged the potential application of turpentine-based paint thinners owing to the fact that turpentine-based paint thinners are manufactured from natural resources such as resin of pine trees that is employed as a base ingredient. For instance, according to a survey conducted by Harvard Business Review in August 2019, consumers (especially millennials) are becoming more linear towards using brands that embrace sustainability. This factor may further augment the growth of the turpentine solvent type paint thinner market; thus, creating remunerative opportunities for the market

The paint thinner market is segmented on the basis of solvent type, application, and region. By solvent type, the market is segregated into acetone, turpentine, naphtha, toluene, methyl ethyl ketone, and others. The methyl ethyl ketone segment dominated the global market in terms of revenue in 2021, with 31.3% of the total share. This is attributed to the  fact that methyl ethyl ketone is used as a paint thinner solvent for equipment washing, degreasing, and cleaning purposes in various end use sectors including construction, marine, industrial manufacturing units, and others.

By application, the market is divided into paints & coatings, industrial equipment, and others. The paints & coatings segment dominated the global market in terms of revenue in 2021, with 64.4% of the total share. Paints and coatings are used in both interior and exterior of buildings to enhance the aesthetics. Furthermore, it is used to prevent the substrate from deterioration due to corrosion, weather changes, ultraviolet (UV) exposure, chemical exposure, and others. Moreover, specially designed paints and coatings find application in roof coatings, wall paints, and deck finishes. Paint thinners are used to dissolve paint and reduce the viscosity of paint that make it easy to apply on surfaces using sprayers, brushes, applicators, and others. Furthermore, they are used to remove the paint remains in brushes, rollers, and other paint applicators.

Region-wise, the paint thinner market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific paint thinner market size is projected to grow at the highest CAGR during the forecast period and accounted for a major paint thinner market share in 2021. The rising building & construction, transportation, industrial, and other sectors have enhanced the performance of the paint thinner market in the Asia-Pacific region. China's industrial sector is increasing rapidly which in turn has enhanced the performance of the paint thinner market in the region. Furthermore, China's paints & coatings manufacturing sector is increasing rapidly which has forced the paint thinner manufacturers to produce more efficient paint thinner used along with various paints & coatings in several end use sectors. These factors altogether have surged the demand for paint thinner in the Asia-Pacific region.

Key players operating in the global paint thinner market include Akzo Nobel N.V., Axalta Coating Systems, LLC, Hempel A/S, Jotun, Kansai Paint Co., Ltd., Kwality Paints and Coatings Pvt. Ltd., PPG Industries, Inc., RPM International Inc., The Sherwin-Williams Company, and Zigma Paints Pvt. Ltd.

COVID-19 analysis:

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The paint thinner market has been negatively impacted due to the wake of COVID-19 pandemic. The dependence of paint thinner market on building & construction, automotive & transportation, industrial, aerospace, and other sectors that were severely impacted during the COVID-19 pandemic has led the paint thinner market to witness a downfall. According to a report published by Society of Indian Automobile Manufacturers (SIAM), sale of passenger cars and sport utility vehicles declined by 52%, and 45% respectively in March 2020. Moreover, several automotive companies had either shutdown or shrank their operations due to the risk of infections among the workforces. This has temporarily hampered the demand for paint thinners market amid the COVID-19 pandemic.

In addition, the falling income of customers and international travel restrictions has led to contraction of the demand of paint thinners among the aerospace sectors. For instance, according to a report published by Airlines for America, the commercial airline passenger volume in September 2020 was 68% less than September 2019, affecting long-term existential threat to manufacturers, the supply chain, and to the entire air travel industry. Furthermore, COVID-19 has put a temporary break on various aircraft manufacturing projects, which in turn has shrunk the demand for paint thinners used for interior coating and cleaning applications among the aerospace & aviation sectors. In addition, the paint thinner market has witnessed a downfall in demand among the construction sectors, owing to temporary halt on various building and construction project amid the COVID-19 pandemic.

However, the building & construction and transportation activities are projected to get back on track and start functioning with full capacity post COVID-19 period, which is expected to enhance the performance of the paint thinner market. Furthermore, rise in sales of automobile and after sale services has fuelled the demand for a wide range of paint thinners used for paint removal and refinish purposes. For instance, according to a data released by the National Investment Promotion and Facilitation Agency of India in April 2021, the automobile sector contributes around 7.1% of the India’s gross domestic product (GDP) and is expected to reach $300 billion by 2026. This may augment the growth of the paint thinner market in the coming future.

Key findings of the study

• By solvent type, the methyl ethyl ketone segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.6% from 2022 to 2031.
• By application, the paints & coatings application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.3% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 48.1% in 2021, in terms of revenue, growing at a CAGR of 4.4%.