The demand for paints and coatings in Saudi Arabia is currently sluggish due to a dip in crude oil prices. However, government plans for economic diversification and social construction are set to augment market growth, a report said.

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, said the Frost & Sullivan's market research, "Paints and Coatings Market in Saudi Arabia (KSA)".

The report finds that the kingdom’s paints market presents a promising outlook for participants with a 2021 potential of SR3 billion ($799.90 million), despite economic short-term woes.

The research provides an insight into key trends, drivers, and restraints within decorative and protective coatings.

Consultant David Anil Kumar said: “In the short term, companies will need to look at increasing penetration in the retail space for decorative coatings.”

“In the case of protective coatings, product development and performance is key,” he said.

Further, growth opportunities for paints and coatings companies include: selling mid-range and economy-range interior paints; focusing on low-VOC (volatile organic compounds), ‘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.

Kumar continued: “Saudi Arabia is currently witnessing a greater shift toward water-based paints from solvent-based paints.”

“Companies that cater to trends are expected to gain market share, especially in the decorative paints segments,” he added. – TradeArabia News Service