LONDON, April 9, 2013 /PRNewswire/ -- A growing construction sector in Eastern Europe - combined with other factors such as volatile organic compound (VOC) emission regulations, and consumer interest in interior decoration - will spearhead the growth of the decorative paints and coatings market in Europe. Emphasis on environmentally friendly products will further aid market development in the region. Norway is likely to register the highest growth in the whole of Europe.
New analysis from Frost & Sullivan ( http://www.chemicals.frost.com), Strategic Analysis of the European Market for Decorative Paints and Coatings, finds that the market earned revenues of more than €9,4 billion in 2012 and estimates this to reach €11,6 billion in 2019.
The growing construction industry in Eastern Europe boosts the prospects of the decorative paints and coatings market while Norway is expected to register the highest growth in Europe owing to the increase in residential, commercial and infrastructural building construction. New shopping mall, hotel and hospital projects will open up opportunities in Turkey and Sweden.
"Growing consumer interest in home decoration and aesthetics, and the improving standards of living in Eastern Europe have accelerated market growth," said Frost & Sullivan Chemicals, Materials and Food Research Analyst Soundarya Shankar. "Moreover, the economic slowdown has compelled consumers to save costs by painting their own houses instead of hiring professionals, widening the scope of the do-it-yourself (DIY) segment."End-user awareness on the benefits of reduced VOC emissions has accelerated demand for water-borne decorative paints and coatings, which will soon replace solvent-borne products in interior applications. Stringent laws, especially in the Netherlands that aim to prevent health complications, have also forced manufacturers to focus on sustainable products with low or zero VOC content. In Western Europe, however, the market has reached saturation, and slow infrastructure growth will limit market revenues in the short and medium terms. Besides, materials such as bricks, tiles, glass, decorative concrete, marble and wallpapers serve as better and cost-effective alternatives. "Escalating product prices and raw material scarcity add to the challenge, and paint and coating manufacturers need to strengthen their relationship with raw material suppliers to avoid being affected," said Frost & Sullivan Research Analyst Gabriela John Swamy. "They need to achieve sustainability across the value chain, and raise awareness on the advantages of environment-friendly solutions over conventional products." Market consolidation is a likely trend, as larger entities look to enhance brand visibility and expand market share.