Asian coating sales valued at $20.5 billion in 2004.

According to a new study by Kusumgar, Nerlfi & Growney, Asian coating consumption surged to 7.9 MM metric tons (MT) with a sales value of $20.5 billion in 2004. An eight percent annual growth rate (AGR) is forecast for the region through 2009.

China, Japan, South Korea and India are the major coating consumers in Asia, representing just over 80% of the volume and dollars in Asia in 2004. Japan's and South Korea's share of the Asian coating market is projected to decline. In 2004, the two countries combined represented 27% of the tonnage, but their share is forecast to fall to 20% by 2009. During that time, the combined share of coating tonnage for China and India will rise from 54% to 63%.

China has recently surpassed Japan to become the largest coating market in Asia, accounting for 42% of the volume and one-third of the dollars in the region in 2004, according to the firm. Demand in China is being propelled by a strong housing market, infrastructure building, the increased domestic consumption of goods and growing exports.

Indian coating usage is also expanding because of a strong housing market and infrastructure building. In addition, vehicle production in India is rapidly increasing. However, India is significantly behind China in the manufacture of most goods utilizing paint, according to the report.

Although Japan is currently the largest consumer of automotive coatings in Asia, China will surpass it by 2009. Japan has also lost its leadership position in shipbuilding to Korea, while both countries are facing stiff competition from China. Responding to low domestic growth in recent years, Japanese coating producers have expanded their presence in other Asian countries, according to the company.

For more information on the report, contact Kusumgar, Nerlfi & Growney at [phone].