The U.S. architectural paint market size to cross USD 15 billion by 2025, growing at a CAGR of 4% during the forecast period. The U.S. architectural paint market is witnessing a sort of revival. Home improvement projects are on the rise owing to the COVID-19 pandemic as a major chunk of the population is sheltering in place. A lot of consumers are looking to tackle the long ignored and overdue renovation of their spaces or are taking up paint projects to keep themselves occupied during the lockdown, which is expected to contribute to the growth of the U.S. architectural coatings market size. As spaces are becoming more creative, experiential, design-friendly, and environmentally--conscious, colors are witnessing heightened attention. Since paints allow for complete transformations of environments, they are constantly being used to adapt to the changing pace of business.
Shortages in raw materials such as alcohol, pigments, and dyes, as well as delays in the transportation of materials owing to restrictions in travel, will have an impact on the market. Social distancing measures and lockdowns are likely expected to reduce economic activities further. Countries such as China are offering 12–15% of rebates on exports in a bid to regain value owing to tariff restrictions in 2019. An expected increase of about 7% in the construction rate of the residential sector is likely to drive construction spending by around 4%.
- The residential repaint segment is expected to observe an incremental growth of approx. $1.2 billion by 2025.
- The interior paint segment is likely to reach a revenue of over $9.2 billion by 2025.
- The online segment is projected to grow at a CAGR of over 5% during the period 2019-2025.
- The U.S. architectural coatings market growth is expected to observe an absolute growth of 31% by 2025
U.S. ARCHITECTURAL PAINT MARKET SEGMENTATION
The U.S. architectural paint market research report includes a detailed segmentation by
INSIGHTS BY END-USER
The DIY segment is expected to reach revenues of over $5 billion by 2025 and will hold the largest U.S. architectural paint market share. Retailers such as Lowe’s and Home Depot are observing a spike in demand for home improvement materials. This surge in demand is expected to see an upward trajectory even after the lift in lockdowns, driving the sale of architectural paints as people continue to shelter in place until the pandemic is wholly wiped out. DIYers have been driving sales for characteristically soft, ultra-matte finish paints.
Over the past two-three years, consumer confidence steadied disposable incomes, and savings increased, which are driving improvements in residential projects, particularly in the Midwest. Rural architecture is making a comeback as consumers invest in their hometowns, remolding farmhouses and mending downtown brick buildings, driving demand for vernacular architecture, local coating materials with color palettes that have traditionally been associated with this form in the past.
The COVID pandemic has stirred up a strong need to maintain microbe-free environments, spurred a flurry of innovations and R&D in this space. Maintenance of essential properties is ongoing in some states basis laws but are expected to continue in full after the current situation calms down, driving demand for architectural coatings that can be used on a variety of substrates. While the commercial and institutional markets are expected to strengthen, the industrial market, not so much.
INSIGHTS BY APPLICATION
In the midst of the renovation rush that has come on a decade after the recession, the need for interior paints has gone up across the United States. Gloss and semi-gloss finishes are expected to grow at the cost of flat finishes. However, the latter is still being preferred for low-traffic areas such as ceilings and hallways. Matte finishes are also being preferred over flat finishes. In San Francisco, California, muddy shades are covering walls, in New York City, nature-inspired colors are being incorporated, whereas, in Seattle, Washington, traditional colors are reigning. Moreover, exhibition spaces like museums and galleries occupy a more profound place in modern culture. This has driven operators to focus on how the paint can affect viewing experience, and renovate, driving demand for paints.
With more than 60% of the existing housing stock having been built before 1990, there is a high demand for paint updates. The housing market is responding to the new demands for bars, outdoor kitchens, and fireplaces, and it is expected to drive the volume of paint demand. This is likely to drive the growth of those brands that have added functionalities to their products. This decade has been witnessing cataclysmic hurricanes, tornadoes, catastrophic floods, and soaring temperatures, bringing with it a lot of damage. This has caused a rise in sales. Therefore, such disasters are expected to increase the frequency of renovations and new builds, thereby increasing the demand for exterior paints.
INSIGHTS BY CHANNEL
Offline stores, especially improvement ones, have historically dominated the market. However, with the advent of technology and digital media, a lot of the demand has shifted online. Apart from the push that has come from e-commerce, the online medium has been feeding a frenzy for interior design, leading the medium to be a place of brand discovery and research. Motivations that drive purchases along the platforms differ and converge in certain aspects. However, younger consumers have a channel-agnostic view of shopping offline and online — the differences tend to be irrelevant. The expectations offline are passed on online as well. Amid the pandemic, most offline channels that deliver home improvement products have remained open as they have been deemed essential. The offline channel has performed strongly, with some stores even posting double the sale.
The online architectural coating industry has been growing over the last couple of years due to the rapid evolution as players set in motion a refined, less hassled delivery system. The rise of the internet has ushered in an era of comparative shopping, educated decisions, innovative business models, and widening creativity. While websites by network services have been mainly used in the market, new ones that focus on distinctive models of working are gathering momentum. The online space has, therefore, been ripe with innovations.
INSIGHTS BY FORMULATION
Water-based paints have dominated the market and are likely to continue their dominance due to low odor, fast drying time, high color retention and film life, and easy cleanups. However, the coating manufacturers have created waterborne coatings and enamels, which have a similar look and feel to oil-based paints. They offer the ease and convenience of water-based and durability of traditional oil paint, thereby further driving market share. Water-based come with their own set of challenges. As temperatures are soaring across the United States, characterized by heatwaves and unusually frigid weather, the application and highperformance of water-based owing to slower curing is compromised. This is proving to be a challenge in a market where labor shortage is critical, and so is the time is taken to complete a paint job.
Over the last three decades, the sale of oil-based paints has been declining steadily and has disappeared from the shelves in much of the eastern seaboard and states such as California as they tend to gas off and pollute. The introduction of increased regulations and air-quality restrictions in the late 1990s has led to manufacturers largely neglecting further the development of oil-based coating. However, oil-based have still retained their place due to their leveling off properties, impermeability, toughness, and coverage. They can withstand the degenerative effects of air and water longer than water-based ones, features that water-based have still found it hard to meet satisfactorily.
INSIGHTS BY VENDORS
The U.S. architectural paint market is highly concentrated. PPG Industries, Sherwin-Williams Company, Benjamin Moore, and Behr Process Corporation account for 90% of the market. New players are, however, disrupting the market, largely in terms of addressing subtle pain points. For instance, while paint and coating companies are heavily regulated, disclosing ingredients is not a requirement, so traditional players do not reveal the contents of their paint. Leading players in the US and North America regions have established geographically diverse brands and cater to the entire spectrum of consumers from value-oriented to premium.
The U.S. architectural paint market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by End-user
- Residential Repaint
- Commercial, Industrial, and Institutional Repaint
- New Residential
- New Commercial, Industrial, and Institutional