Strong performance in downstream industries has fueled 13.4% annualized growth in the paint manufacturing industry in China over the five years through 2013 to reach US$52.2 billion.
The development of the industry is largely dependent on demand from the automobile manufacturing industry and China’s real estate sector, says IBISWorld.According to the industry and market research publisher, though macro-controls on China’s real estate market are strengthened, the construction of indemnificatory and low-rent houses and old house renovation is driving demand for architectural paint.
In addition, increasing urbanization is also supporting the development of the real estate markets in China’s medium-sized and small cities.Meanwhile, strong double-digit growth in the Automobile Manufacturing industry has been boosting sales of automotive paint.
Due to the large number of small and medium-sized enterprises operating, the paint manufacturing industry in China has a low industry concentration level. The top four firms, which are Nippon, DuPont, Azko Nobel and PPG, account for about 12.1% of industry revenue in 2013.