Strong increase in global demand for paints and coatings
The Coronavirus caused a significant fall in the demand volume in the first part of 2020. The repeated lockdowns in several parts of the world kept deferring the anticipated strong recovery. In the first quarter of 2021 the volume growth of about 14 % YoY was supported primarily by the decorative paint segment that increased ca. 22 % YoY. This is reported by the B2B market research and consulting institute Chem Research, which specialises in paints and varnishes as well as adhesives and sealants. The strong growth resulted from both the booming building construction activities in China and in the USA as well as the buoyant DIY business in North America and in parts of Europe.
Distribution channel inventory refilling also played a part due to the strong retail sales in 2020 and the anticipated price increases in 2021.
Industrial production recovery
On the other hand, the volume of the global demand for industrial coatings grew by about + 5 % in Q1 2021, which reflects the continuing gradual industrial production recovery since Q3 2020. The strongest surge in industrial coating demand was experienced in China and India, followed by moderate growth in Europe, while the North American recovery lagged behind.