Faux Finish Coatings Market

Market Outlook for Faux Finish Coatings

Newly released data from Fact.MR’s market analysis shows that the global demand of faux finish coatings reached nearly US$ 7 Bn by the end of 2020. Growth is being fuelled by an increase in refurbishing and renovation projects across residential and commercial settings. The industry is expected to surpass a market value of US$ 13 Bn surpassing a CAGR of 6% by 2031.

Faux Finish Coatings Historical Trends 2016-2020 Vs Future Outlook 2021-2031

According to Fact.MR- a market research and competitive intelligence provider- the global faux finish coatings market expanded at over 5% CAGR from 2016 to 2020.

Faux finish coatings have gained traction amid surging renovation project frequency, both for imparting enhanced aesthetic value as well as strengthening existing infrastructures.

With increase in demand for various interior décor applications such as walls, doors, panels, handrails, and others, faux finish coating manufacturers have experienced a surge in demand in the past years.

Thus, demand is anticipated to ascend at over 6% CAGR to reach a market value exceeding US$ 13 Bn from 2021 to 2031.

How are Surging Renovation and Refurbishing Projects Elevating Demand?

Inclination for interior decoration in industrial, commercial, and residential sectors, alike, has become prominent since the past decade. As the requirement for finishing that looks like metal, marble, stone, or other appealing surfaces tends to persist, demand for faux finish coatings is projected to increase over the coming years, creating ample opportunities for key market players.

Renovation of old residential spaces along with rising inclination towards increasing the aesthetics of commercial spaces is influencing the sales of faux finish coatings.

Why is Demand for Faux Finish Coatings Surging from the Architecture Industry?

As the architecture industry expands, demand for faux finish coatings does too, and manufacturers are witnessing higher sales across the world.

According to the International Trade Administration, since 2010, the United States has had a surplus for trade in Architecture, Engineering, and Construction (AEC) services, reaching US$ 7.52 Bn in 2019. As per the report, exports of U.S. AEC services reached US$ 15.86 Bn, while imports were US$ 8.34 Bn.

Almost 60% of U.S. architectural services were provided in the Asia Pacific region, with more than US$ 625 Mn in exports, while Europe was the next largest export market for architectural services, accounting for 16% of U.S. exports, valued at more than US$ 170 Mn. This represents the enormous growth scope for faux finish coating manufacturers not only in the U.S. but across the globe.

Will Steady Growth of the Construction Industry Fuel Sales of Faux Finish Coatings?

Rise in the number of buildings, construction, and renovation projects in residential, industrial, commercial, and other sectors is significantly boosting demand for faux finish coatings across geographies.

According to a report published by Invest India, the National Investment Promotion & Facilitation Agency of India, India is set to hold the third-largest construction market by 2025. As per the report, the Government of India spent approximately US$ 454.8 Bn on infrastructure development over the last 6 years from 2015 to 2020.

As stated in a report published by the Government of the United Kingdom, the U.K. construction industry is growing steadily and is set to secure its share of the forecast EUR 200 billion p.a. global market for integrated city systems by 2030. All such factors bode well for demand to rise for faux finish coatings.

What are the Key Challenges Faced by Faux Finish Coating Manufacturers?

Though faux finish coatings are highly preferred in residential, commercial, and other sectors, they are quite expensive and often not affordable by consumers with low to medium income or small commercial entities.

Additionally, there are a few cons of using faux finish coatings that often work as restraints for manufacturers. This is due to the costly maintenance the faux finish coatings require. Also, in comparison to normal painting, faux finish painting is time-consuming. This ends up making it expensive. In addition, if the labourer is not skilled to apply the paint, chances of improper application of paint may arise.

Country-Wise Analysis

What Growth Prospects Abound across the U.S Market?

The U.S is the leading country in the world’s largest market for faux finish coatings, expected to remain in this pole position throughout the forecast period, growing at over 6% CAGR until 2031.

Highly advanced commercial and residential construction industry and rise in requirements from the architectural industry are propelling the growth of faux finish coating manufacturers in the country.

In February 2019, Google announced that it would spend US$ 13 Bn on offices and data centres across the U.S., noting that, these investments will create thousands of new construction jobs in states outside of its traditional base of California, including in Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina, and Virginia.

Why is Germany a Lucrative Market for Faux Finish Coatings?

Backed by steady growth of the building & construction industry and rising inclination towards interior decoration, Germany is set to remain a lucrative region over the coming years.

According to a report titled “European Construction Sector Observatory”, published by the European Commission in June, 2018, there were 650,813 enterprises operating in the broad construction sector in Germany in 2014, predominantly micro, small, and medium, while production in construction registered an overall growth rate of 10.4% over 2010-2016.

This data explains why faux finish coatings manufacturers are targeting Germany in order to increase their sales footprint. A revenue share exceeding 45% is projected for the German market.

Will China’s Faux Finish Coatings Market Exhibit Hegemony?

An advanced construction industry and rise in the number of highly developed manufacturing hubs have kept China in the limelight for manufacturers of faux finish coatings.

As stated by the National Bureau of Statistics (NBS) in 2017, the construction industry in China is growing steadily at an average annual growth rate of 16.6%, while the number of construction companies saw fast growth, reaching more than 300,000 last year.

As such, China has been grabbing the attention of faux finish coating suppliers in recent years. Thus, China is expected to surpass a market value of US$ 2 Bn in the forecast period.

What Makes India a Huge Market for Faux Finish Coatings?

Fast-paced growth of the construction industry, abundance of raw materials and labor, and other such factors are driving demand for faux finish coatings across India. A CAGR of over 5% is projected for the Indian market.

According to Invest India, the construction industry in India is growing exponentially, while the real estate sector attracted US$ 5 Bn worth of institutional investments in 2020.

As stated in its report, the construction industry in India contributed 9% of the Gross Domestic Product (GDP) of the country, while new investments in road infrastructure was US$ 16.6 Bn in 2018.

Category-Wise Insights

Which Type of Faux Finish Coating is Most in Demand?

Presently, wall glazing faux finish coatings are leading in the market, and are expected to propel the growth of manufacturers due to their high requirement. The segment will likely account for nearly 2/5th of global demand.

This type is highly preferred in industrial, commercial, and even residential sectors due its exclusive properties such as providing thermal efficiency and improving overall over all appearance of walls. In addition, it also allows natural light to penetrate deeper within the building.

Competitive Landscape

The global faux finish coatings market is fragmented in nature, and thriving on key players. In order to remain in their high positions, these key players are emphasizing on developing more advanced and broader range of products. For instance,

• In 2021, Faux Effects International Inc. announced the launch of WALLSILK™, a unique Faux Effects® decorative coating, which, in combination with ShimmerCoat™, replicates the look, feel, and elegance of raw silk and other exquisite fabrics.
• PPG Industries, Inc. launched its new range of faux finish coatings of various neutral colors in 2020.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania  Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Germany UK Spain France Italy Russia India China Japan South Korea Australia New Zealand GCC South Africa
Key Market Segments Covered	Coating Type Region
Key Companies Profiled	The Sherwin-Williams Co. Nippon Paint Holdings Co. Axalta Coating Systems Kansai Paint Co. Ltd. Faux Effects International Jotun PPG AkzoNobel RPM International Inc. BASF Coatings Asian Paints Ltd.
Pricing	Available upon Request

Key Segments Covered

• Coating Type

  • Plaster Faux Finish Coatings
  • Metallic Faux Finish Coatings
  • Wall Glazing Faux Finish Coatings
  • Marbleizing Faux Finish Coatings
  • Other Faux Finish Coatings