To gain market share, companies should focus on price-conscious customers with cost-competitive performance products, finds Frost & Sullivan's Visionary Science team
DUBAI, United Arab Emirates, Nov. 7, 2017 /PRNewswire/ -- Demand for paints and coatings in the Kingdom of Saudi Arabia (KSA) is currently sluggish due to a dip in crude oil prices and geo-political and macro-economic uncertainties. Government plans for economic diversification and social construction developments such as educational facilities, hospitals, and tourist hotspots are set to augment market growth. In the short term, paints and coatings companies should focus on catering to price-conscious customers with cost-competitive performance products. Their long-term strategy should include investment and development of tech-intensive and green products.
Frost & Sullivan's market research, "Paints and Coatings Market in Saudi Arabia (KSA)", finds that the KSA paints market presents a promising outlook for participants with a 2021 potential of SAR 3 billion, despite economic short-term woes. The research provides an insight into key trends, drivers, and restraints within decorative and protective coatings.
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"In the short term, companies will need to look at increasing penetration in the retail space for decorative coatings," said Visionary Science Consultant David Anil Kumar. "In the case of protective coatings, product development and performance is key."
Further, growth opportunities for paints and coatings companies include:
- Selling mid-range and economy-range interior paints;
- Focusing on low-VOC, "Green Seal" products;
- Investing in mid-range paints, especially for large projects; and
- Increasing the influence of value chain partners such as painters and architects in purchases
"KSA is currently witnessing a greater shift toward water-based paints from solvent-based paints," noted Kumar. "Companies that cater to trends are expected to gain market share, especially in the decorative paints segments."
Paints and Coatings Market in India is part of Frost & Sullivan's Visionary Science Growth Partnership Service program.
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Paints and Coatings Market in Saudi Arabia (KSA)
SOURCE Frost & Sullivan