USD
GBP
CNY
EUR
INR
JPY
MYR
ZAR
KRW
THB
Paints and Coatings Market in Saudi Arabia (KSA)
Paints and Coatings Market in Saudi Arabia (KSA)
Construction industry to see increasing investments due to the need for economic diversification and overall social development
28-Aug-2017
Global
$1,500.00
Special Price $1,125.00 save 25 %
Description
The infrastructure industry in the KSA, which enjoyed high growth rates over the last few years, is facing hardships due to crude oil prices. This in turn has affected the demand for paints and coatings. However, the Government's plans for economic diversification will serve as a shot in the arm for the paints and coatings industry. Development of downstream petrochemicals / chemical industries, healthcare facilities, educational facilities, tourist hot spots, logistics corridors, etc. will result in increased consumption of paints and coatings. However, in the short term companies will need to look at increasing penetration in the retail space for decorative coatings. In the case of protective coatings, product development and performance is key for sustenance. This study provides a broad overview of the general economic condition of the KSA and its effect on the paints and coatings industry, and has been designed to serve as the critical starting point for charting short-term strategy for a paints and coatings company.
Table of Contents
Scope & Objective
Constrained earnings across customer segments; price point to be key differentiator in short to medium terms
Way forward: Short term focus on catering to price conscious customers; long-term roadmap towards tech-intensive, green products
The KSA is the largest member of the GCC, largely influencing economic activities in the GCC
Diversification into non-oil related industries and Tourism to boost construction activities and drive demand for paints and coatings
Construction industry to see increasing investments due to the need for economic diversification and overall social development in the KSA
Paints market has witnessed steady growth over the years, with decorative coatings dominating the mix. Low crude oil prices to dampen growth in the short term
Established local & MNC presence; intense competition across price-points and product types; a broad price-range product portfolio critical in gaining market
Growth outlook dampened by macro-economic uncertainties due to crude prices & geo-political issues; urbanisation & economic diversification drive demand
With a 2021 potential of SAR 3 Bn, KSA paints market presents a promising outlook for participants, despite economic woes of the short term
Significant share of the unorganised sector highlights market penetration opportunity at low price points in the decorative coatings market
Accounting for 80% of total sales, Retails sales will be the growth hotspot; role of dealers/distributors critical to gain/retain market share
Tighter regulations, lower prices & growing end-user awareness to impact product development & placement towards ‘green’ brand; market consolidation possible
Consumer preferences created trends such as eco-friendly branding, plain aesthetics and paints with textural appearance—Key to penetrate market
High consolidation at both supply and demand sides; high entry barriers; product performance with significant price benefits can help acquire new customers
With customers reducing spending, paint producers to collaborate with suppliers to offer products at competitive pricing. Limited role of distributors
Challenges in growth due to current economic situation. To look at power generation and water treatment related coatings and target sales to Aramco
Saudi Aramco’s approval is key for new product introduction in protective coatings. Economic diversification to offer new opportunities in additional industry segments
Maximize opportunities from existing products and markets; systematically explore new products and markets including inorganic Opportunites
Growth Consulting—Service Offerings
Legal Disclaimer
Popular Topics
| No Index | No |
|---|---|
| Podcast | No |
| Lightbox Content | Investment Opportunities in MENA Region|Opportunity with major countries|https://store.frost.com/investment-opportunities-in-middle-east-and-north-africa-mena.html |
| Author | David Elango Anil Kumar |
| Industries | Chemicals and Materials |
| WIP Number | 9AB4-00-19-00-00 |
| Is Prebook | No |