Asia Pacific Coatings Industry Council: Cautious optimism despite uncertainty

The online meeting of the Asia Pacific Coatings Industry Council was hosted this year by the Philippine Paint and Coatings Association (PPCAI). It had originally been planned as an in-person event in Manila but was moved online due to the challenging economic environment. Following a welcome address from Reginald Yu, president of PPCAI, a video presentation by the World Coatings Council set the scene. Its president Tom Bowtell emphasized: “Looking at how the year’s been going, for a year that started off quite optimistically after the action in the straits of Hormuz and the challenges, we’ve had to supply chains after the U.S. Iran war, clearly the global industry has been badly hit by this disruption. It’s been a very difficult period for the industry and it’s having an impact on consumers and our economies”. He spoke about heightened global uncertainty and persistent soft demand and warned that rising costs are likely to put further pressure on margins in 2026. Nevertheless, Asia continues to be the world’s fastest-growing coatings region, and six of the twelve fastest-growing markets are located in Asia, underlined Bowtell. “Asia is by far the biggest region for the paint industry globally and is more than Europe and North America added together, which is a phenomenal achievement”, he said.

Supply disruption and cost pressure remain key concerns

Several associations reported that geopolitical tensions and supply-chain disruption have had a considerable impact on raw-material availability and prices. Mark Chang of the Taiwan Paint Industry Association (TPIA) underlined the impact of the Iran conflict and closing of the strait of Hormuz. “Asia, Taiwan in particular, is very exposed to the situation because most of our oil supply came from the Middle East”, he stated. For around one month, coatings companies were unable to obtain key solvents. Today, conditions have eased but prices remain elevated. At the same time, Taiwan saw particularly strong growth in 2025, driven by the boom in artificial intelligence and semiconductors.

The Japan Paint Manufacturers Association (JPMA) also reported similar supply bottlenecks affecting key feedstocks and solvent supplies during the crisis. While the situation has stabilised and production volumes have been ramped up again, concerns persist about the availability of certain resins. The Philippines also noted major effects such as sharp increases in raw-material prices, disrupted supply chains, weaker purchasing power of customers and currency depreciation which have all affected competitiveness. Because the country depends heavily on imported raw materials, price movements and supply have an especially strong influence on the market. Vietnam experienced panic buying following the conflict. Vuong Bac Dau, vice chairperson of Vietnam Paint & Printing Ink Association (VPIA) noted: “Prices of infrastructure- and construction-related materials increased sharply, with average price escalation estimated at approximately 30 %.”

Sustainability drives technology and policy

Sustainability was one of the most prominent themes throughout the meeting, with countries pursuing both technological innovation and regulatory measures. Singapore is continuing to develop sustainability standards. Technology trends include heat-reflective coatings, water-borne and low-VOC systems, and solutions designed to improve indoor air quality, reported Pamela Phua, president of the local association SPACA. Passive fire protection is another important topic, particularly in a market characterised by a large number of high-rise buildings.

In the Philippines, sustainability strategies are increasingly shaped by green building codes, extended producer responsibility and improved management of paint waste.The APMF, the Australian Paint Manufacturers’ Federation, presented further progress in its Paintback initiative. Originally designed to ensure the proper collection and disposal of leftover paint, the programme is increasingly focused on recycling. In addition to packaging, paint residues are now being processed into new coatings and packages are also recycled. Malaysia is concentrating on the elimination of lead from paints. The MPCMA, the Malaysian Paint & Coating Manufacturer’s Association committed to this objective in 2018 and there is a voluntary national standard. It is now advocating for this to become a mandatory framework, with the goal of fully phasing out lead in decorative paints by 2030.

Regulation and skills shortages shape industry priorities

Regulatory developments are also creating new challenges for coatings manufacturers across Asia. In Korea, a major revision of the “Toxic Substances” framework under K-REACH took place last year, with the transition period ending in early July. A major discussion concerns UVCB substances, substances of unknown or variable composition, complex reaction products or biological materials. Cumene is currently under scrutiny, as it may be present in solvent naphtha and could require separate declaration.

Vietnam’s new chemical law, which entered into force at the beginning of the year, is also expected to have a significant impact. The legislation is considerably stricter than the previous framework. In Indonesia, the availability of skilled professionals remains a key concern. The national association APCI is responding with training seminars and the continued expansion of its Paint School, which has grown from two to four classes. Regulatory priorities include persistent organic pollutants and regulations on environmental and sustainability performance.

Outlook: cautious optimism despite uncertainty

Across the region, the overall outlook remains mixed. Singapore expects moderate growth, although supply-chain pressure, inflation and margin erosion continue to weigh on the market. Despite the challenges, the industry in the Philippines is also expected to remain resilient, while significant growth is not anticipated, the market is expected to remain stable. Malaysia expects a slight decline in 2025 compared with the previous year, but the market is still projected to remain above its 2023 level. Vietnam expects a slight decline in the third quarter of the year, after a very successful 2025. Despite ongoing geopolitical uncertainty, regulatory challenges and cost pressures, the coatings industry across Asia remains cautiously optimistic. Growth opportunities, technological innovation and sustainability initiatives continue to support the region’s long-term development.

 

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