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Paint, Coatings & Printing Ink Manufacturing in the UK - Industry Market Research Report

United Kingdom paint manufacturing market: £3.6 billion industry by 2019

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2014-02-20 12:57:02 - Paint, Coatings & Printing Ink Manufacturing in the UK - Industry Market Research Report - a new market research report on

The United Kingdom paint manufacturing market and coatings & printing ink manufacturing industry is currently characterised by sluggish or falling revenue, consolidation and falling demand from end-user industries that are themselves mature or declining.

Another characteristic of the industry is that it is dominated by a few global players with strong stables of national, regional and global brand names in different price points and product segments. A number also operate on a vertically integrated basis so that competition occurs across the supply chain rather than just at the manufacturing level.

Over the past few years, industry revenue growth has been below that of the general economy, reflecting downturns in many of the industry´s key drivers. For example, the deep-seated economic recession, structural



changes within the automotive industries and a marked downturn in the housing market have all translated into weak demand for industry products. In 2013-14, the industry is expected to contract again, with revenue falling by an estimated 2.8%, reflecting the subdued nature of the nation´s manufacturing and construction sectors. Industry revenue is forecast to total £3.5 billion in 2013-14, down from £3.9 billion five years earlier. This equates to a decline at a compound annual rate of 2.5% over the past five years.

While the industry is expected to regain a small amount of lost ground over the next few years, the sustained recovery of the industry, along with any significant long-term growth, is far from guaranteed. At this stage, the industry will remain considerably smaller than it was prior to the recession, reflecting a lack of opportunities for strong growth. With overall growth expected to be negligible, industry revenue is forecast to be worth an estimated £3.6 billion in 2017-18, equating to a compound annual growth rate of 0.5%.

Despite the lack of any significant revenue growth, the industry will gradually change as it becomes shaped by new variables, including those associated with green perceptions and green public procurement policies. This will result in an increasing focus on eco-innovation and green growth. Nanotechnology will gradually come to the fore as it is used to create new coatings that enhance environmental protection or contribute to sustainability, which is expected to be a key buzz word over the next five years.

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