Global Paints & Coatings Market Competition: Top 15 Players in 2021

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Paints & Coatings Market Competition: Acquisition Strategies and After Pandemic Strategies Made the Top Players to Gain Market Share in 2021

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The journey from 2020 to 2021 for the coatings industry has been a remarkable one after the pandemic, where most of the coating manufacturers have prioritized their strategies not only to look after their employees' health agendas but also to provide efficient optimum operations in their production line & sales activities with a focus on sustainable & environmentally friendly products in the market. The year 2021 also has shown a good number of M&A activities (can check out our blog here for details), and the top coatings companies have taken this opportunity to strengthen their product portfolio with either new technologies or gain market penetration in different regional or country market. According to AKI Research's latest market data research, the global paints & coatings market gained momentum with a y-o-y growth rate of over 6.3% in 2021 to reach more than USD 150.23 billion.

We have studied and analyzed the top 15 global paints and coatings companies based on their paints & coating revenues and presence worldwide.

In 2020, the top 15 paints and coatings companies had a total market share of about 53.23%. In contrast, in 2021, the top 15 paints and coatings companies accounted for a total market share of approximately 58.52%, i.e., an increase of the market share of 5.29% among the top 15 players.

The four key driving factors in the increasing market share in 2021 among these 15 players include

• Acquisition & Expansion Strategies

• Increased Selling Prices

• Efficient Operational & SG&A spendings controls

• Currency Translation

Sherwin-Williams continued to remain the top player in the global paints and coatings market in the second consecutive year, 2021; however, in 2021, the difference in the market share to the second-largest company PPG Industries got minimized, i.e., 0.79% in 2020 to 0.21% in 2021. As per the expansion strategy, Sherwin Williams has 85 new stores in 2021, compared to 16 new stores in 2020, and also announced in Aug 2021 to acquire Sika’s European industrial coatings business, which will be completed in the year 2022. This acquisition will strengthen the Sherwin-Williams market position in the upcoming years.

PPG Industries accounted for the second-largest paints & coatings market share in the consecutive years of 2021. Because of its acquisition strategies, the company has gained a global market share of about 1.39% in 2021. The acquisitions of Ennis-Flint, Cetelon Lackfabrik GmbH, Wörwag, and Tikkurila were the key strengths for the company to gain market share as well as expertise in key technological areas. The expansion plans to increase the manufacturing capacity for packaging applications in Europe and powder coatings in Brazil will also strengthen their position in the upcoming years. In the recent news, PPG announced acquiring the powder coatings business of aronsisi spa, which aligns with their goal to have 40% of its sales by 2025 from sustainably advantaged products.

AkzoNobel continued to remain the third largest paints and coatings manufacturer in 2021 and gained a market share of about 0.66% in the global market in 2021 due to pricing initiatives and their targeted acquisitions of Industrias Titan S.A.U. (Titan Paints), New Nautical Coatings, and Stahl Performance Powder Coatings, in the previous years.

Nippon Paint (NIPSEA Group) has shown high growth in the second consecutive year and gained about 0.96% market share in the global market in 2021. The increased market share is because of the acquisition of 100% ownership of the Asian JVs and the Indonesia business owned by the Wuthelam Group, aggressive marketing strategies, and the increased demand for new housing construction and repainting of existing homes in the Asia-Pacific region. As per their acquisition strategy, Nippon Paint has announced that its subsidiary DuluxGroup is committed to acquiring Cromology Holding SAS, the fourth largest architectural paints & coatings manufacturer in Europe, and will strengthen its presence worldwide. With the addition of Cromology, Nippon Paint will gain a market share of over 0.49% in the global market and minimize the market share gap with AkzoNobel in the upcoming years.

Henkel AG stood at the 5th position in the global paints & coatings market in 2021. The company has shown strong growth in organic sales, and also, the increased sales prices have supported the development in the market share.

The 6th largest company in the global paints and coatings market in 2021 is Axalta Coatings System. The company has gained a market share of about 0.78% in the global market owing to the increase in the average price and product mix and the acquisition of U-POL Holdings, which contributed primarily to the automotive aftermarket or refinished market and supported the broader growth strategy.

The BASF SE, Kansai Paint Co. Ltd, and Asian Paints got the position of 7th, 8th, and 9th, respectively, in the global paints & coatings market in 2021. Asian Paints has gained one position up from 10th to 9th in 2021 from 2020 because of higher growth in revenues. RPM International accounted for about 2.26% market share in the global market in 2021 to be at 10th largest company, which was at 9th position in 2020. The company’s growth in market share is due to the increased volume growth, operational improvements, and selling price increases, which helped to offset raw material inflation. Moreover, RPM has focused on acquisition strategies like the acquisition of Dudick Inc. and manufacturing capacity expansion as their growth strategy

Masco Corporation stood at 11th, followed by Jotun at 12th this year. Jotun has a positive growth in net sales due to the increased sales and low growth in fixed sales to offset the pressure from the high raw material prices.

Hempel has increased its market share by 0.28% in the global market in 2021 and accounted for the 13th position. The company has new product development & acquiring technology for insulation coatings, and it acquired Farrow & Ball to strengthen its position. The company is following the ambitious strategy of acquisitions and organic growth and ambitious investments in sustainability, innovation, and digitalization to double its revenue by 2025.

DAW SE, the top architectural coating company in the European region, was at 14th position in the global paints & coatings market in 2021, followed by Berger Paints at 15th position in the global market and the second-largest coatings company in India.

The increased M&A activities and growth strategies are taken by the top players have accelerated the momentum and competitive rivalry in the coatings industry. Moreover, the agenda to minimize the carbon footprint and use more sustainable products has given these players opportunities to gain consumer preferences over quality products in their specific business segments. Environmental concerns matter a lot to the end consumers, and, in the last year, DIY products in construction activities have also shown higher demands that support the significant growth in the coatings industry. Healthy sustainable competition is good among these global and regional players. However, the covid pandemic has disrupted the supply chain of raw materials and other participants in the value chain. Small paints & coatings manufacturers are still facing issues and constraints to gain their market share compared to the last year. As forecast by AKI Research, the global paints and coatings market will reach over USD 192.3 billion by 2026, i.e., incremental growth of about USD 42.06 billion in the next 5 years from 2021.