Global Low Voc Or Zero Voc Paints Market Is Estimated To Witness High Growth Owing To Stringent Government Regulations And Growing Construction Industry
The Global Low Voc Or Zero Voc Paints Market is estimated to be valued at USD 10.45 Bn in 2024, exhibiting a CAGR of 6.7% over the forecast period (2024-2031). Furthermore, stringent government regulations regarding VOC emissions and growth in construction industry are fueling the market growth.
Market Dynamics:
Rising environmental concerns across the globe regarding the harmful effects of VOCs are a key driver propelling the low VOC or zero VOC paints market growth. Various health risks associated with the inhalation of VOCs such as eye, nose and throat irritation, headaches, loss of coordination and damage to liver, kidneys and central nervous system have resulted in formulation and implementation of stringent regulations regarding VOC content in paints and coatings. For instance, South Coast Air Quality Management District (SCAQMD) in California, U.S. has mandated VOC content to be less than 50 grams per liter for both interior and exterior architectural coatings.
Growing construction activities, especially in emerging economies of Asia Pacific and Latin America are another factor augmenting the demand for low or zero VOC paints in construction applications. The expansion of the residential, commercial, and infrastructure sectors has increased the need for low emission paints and coatings. Furthermore, increasing consumer preference for green buildings is also propelling the product adoption.
Growing Environmental Concerns and Stringent Government Regulations Drive the Demand for Low VOC Paints
Rising environmental awareness among consumers as well as stringent government regulations regarding VOC emissions are the major factors fueling the growth of The Global Low Voc Or Zero Voc Paints Market. VOCs are recognized as hazardous air pollutants that can cause short-term as well as long-term health effects such as irritation of eyes, nose and throat, headaches, loss of coordination, nausea to serious issues like damage to liver, kidneys and central nervous system.
Many countries and regions across the globe have formulated and implemented stringent regulations pertaining to the VOC content allowed in various paints and coatings. For instance, the South Coast Air Quality Management District (SCAQMD) in Southern California restricts architectural coatings to have a VOC content of less than 50 g/L. Similarly, Environment Protection Agency (EPA) in U.S. has limited VOC content to 100-150 g/L or less depending on the type of paint. This is propelling paint manufacturers to develop and offer low/zero VOC alternatives to their conventional products.
Volatility in Raw Material Prices Hampers the Market Growth
Fluctuations in the prices of key raw materials used in the production of low/zero VOC paints present a major challenge for manufacturers. Some of the major inputs including pigments, binders, solvents, and additives witness significant price volatility depending on factors like supply availability and demand-supply dynamics.
For example, crude oil is a critical feedstock for manufacturing paint solvents and resins, and crude oil prices have exhibited wild swings over the past few years influenced by geopolitical issues. These unstable raw material costs squeeze the profit margins of paint makers.
High Research and Development Costs Discourage New Entrants
Developing innovative formulation techniques to eliminate or reduce VOCs in paints while maintaining their performance quality is a lengthy and expensive process. It requires extensive research involving trials with various chemical combinations and analyzing their viability.
Setting up R&D facilities involving sophisticated equipment and hiring of expert chemists and engineers comes with a heavy initial investment. For new players, it is challenging to bear such high costs without guaranteed financial returns. Even for established brands, continuous product innovations drive up their R&D expenditure. This acts as a barrier, limiting the number of companies venturing into this market.
Growing Consumer Preference for Eco-friendly Products Creates Opportunities
In the backdrop of rising environmental awareness, there is a clear consumer demand shift towards greener products that do not harm health or pollute the environment. Millennial and Generation Z consumers, in particular, consider the sustainability and eco-friendly attributes before purchasing daily use items.
This change in purchasing behavior works in favor of low/zero VOC paint manufacturers. By promoting their paints as being safe for indoor air quality and having lower VOC emissions, companies can attract more consumers. The eco-labels and green marketing work as a unique selling proposition in this market.
Increasing Infrastructure Investments in Emerging Economies Spur Demand
One significant opportunity lies in huge infrastructure development programs being undertaken in emerging countries. Governments in Asia Pacific and Middle Eastern nations are aggressively carrying out projects to build or refurbish commercial and residential buildings, highways, metros, ports, etc.
This massive construction activity creates robust demand for architectural, industrial, and automotive paints. Low/zero VOC paints fit well considering that emerging markets also need to comply with tightening environmental regulations. With their spending power rising, these regions will continue fueling future growth in the global low voc or zero voc paints market.
Link: https://www.coherentmarketinsights.com/market-insight/low-voc-or-zero-voc-paints-market-5328
Key Developments:
- In May 2024, Astral Ltd, a leading Indian company recognized for its plumbing and adhesive products, announced the launch of its new paint line, branded as "Astral Paints." This strategic initiative marks Astral Ltd's entry into the expanding Indian paint market, capitalizing on its strong brand recognition and extensive distribution network to provide consumers with a diverse range of high-quality paint products.
- In 2023, Crown Trade is set to reinforce its commitment to fostering a more sustainable built environment with the introduction of an innovative air-purifying paint that features ultra-low levels of volatile organic compounds (VOCs). This new product reflects Crown Trade's dedication to enhancing indoor air quality while promoting eco-friendly practices in the painting industry.
Key Player:
Benjamin Moore & Co., The Sherwin-Williams Company, AkzoNobel N.V., PPG Industries Inc., The Dow Chemical Company, American Formulating & Manufacturing, YOLO Colorhouse LLC, Dunn-Edwards Corporation, Wacker Chemie AG, EcoProCote, BASF SE, Valspar Corporation, Behr Process Corporation, Rust-Oleum Corporation, Farrow & Ball, Little Greene, Auro Pflanzenchemie AG, BioAmber, Dulux, and Asian Paints
