Paints and Coatings Market in Saudi Arabia (KSA)

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

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