The bio-based paints & coatings market has witnessed significant growth in recent years owing to rising environmental consciousness. Bio-based paints are manufactured using plant-based components like vegetable oils, nuts, resins and food products, which can be utilized in paint manufacturing without undermining performance quality. They are safer options for indoor and outdoor paints as they contain low or no volatile organic compounds (VOCs) that release fumes containing various chemicals. Rapid urbanization and infrastructure growth have increased the demand for building & construction activities. This has prompted builders to opt for environment-friendly materials like bio-based paints and coatings to develop green buildings. Water-borne bio-based paints have lower viscosity and give smooth finish to exteriors of homes, commercial spaces and bridges. Moreover, they are durable and provide protection from fungi, moss, algae growth and UV radiation.
The Global Bio-based Paints & Coatings Market is estimated to be valued at US$ 14.51 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the bio-based paints & coatings are United Technologies Corporation (Carrier), LG Corporation, Daikin Industries. Ltd., AB Electrolux, Haier Inc., Lennox International Inc., Samsung Electronics, and Panasonic Corporation.
The growing awareness about green products and environmental protection is driving the demand for Bio-Based Paints & Coatings Market Growth and coatings across both developing and developed parts of the world. Stringent regulations regarding VOC emissions from conventional paints are further propelling the market growth.
Leading manufacturers are focusing on expanding their production facilities in Asia Pacific and South American countries to tap the immense market potential. Various programs have been launched by governments worldwide to promote usage of bio-based products in construction industry.
Market Drivers
Strict environmental norms around the world regarding emissions from synthetic paints and coatings is a key driver for bio-based paints & coatings market. Governments are imposing penalties on manufacturers not complying with green product standards. This has accelerated the shift towards natural and sustainable options like bio-based paints which contribute to cleaner surroundings. Growing consumer preference for non-toxic interior decoration materials is another crucial factor augmenting the market demand.
Impact of geopolitical situation on Bio-based Paints & Coatings Market Growth
The ongoing geopolitical conflicts and fluctuations have impacted the Bio-based Paints & Coatings market growth. Several factors like international trade restrictions, foreign currency fluctuations, and supply chain disruptions influence the raw materials procurement and production processes. The ongoing Russia-Ukraine war, tensions between China and Western countries, and instability in Middle Eastern nations have disrupted supply chains and increased input costs.
The manufacturers are facing difficulties in procuring raw materials like vegetable oils, resins, minerals, and additives from geopolitically unstable regions. Alternative sourcing and establishing local production facilities need significant investments and time. Over-dependence on a particular region makes companies vulnerable to regional export restrictions as well. Geopolitical stability is crucial for the sustainable growth of this market in the long run.
Geographical Regions with high Bio-based Paints & Coatings Market concentration
In terms of value, North America accounts for over 35% of the global Bio-based Paints & Coatings market share. This can be attributed to stringent environmental regulations, focus on sustainability across industries, and presence of prominent manufacturers in the US and Canada. Europe holds the second largest market share on the back of supportive government policies promoting bio-based products across the EU nations.
The Asia Pacific region is emerging as a lucrative market, led by China, India, and other Southeast Asian countries. Factors like increasing construction activities, growing automotive sector, favorable government initiatives, and rapid urbanization are driving the market growth in Asia Pacific. Countries like Brazil, Argentina, and South Africa are also witnessing steady expansion due to infrastructure investments and industrial development.
Fastest growing region for Bio-based Paints & Coatings Market
The Asia Pacific region is poised to witness the fastest growth over the forecast period in the global Bio-based Paints & Coatings market. This can be attributed to accelerated industrialization, construction sector boom, rising vehicle production, and growing population in major Asian economies. Rapid infrastructure development projects underway in the region necessitate high material requirements.
Stringent regulations pertaining to VOC emissions and emphasis on eco-friendly alternatives are encouraging the demand for bio-based variants. Supportive government policies and incentive schemes favoring sustainability also promote market growth. Industrialization drives across countries like India, Vietnam, Philippines, and Indonesia provide immense opportunities. Increasing domestic consumption, foreign investments, and export activities will significantly contribute to the regional market expansion in the coming years.
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