GCC Water-based Paints Market Research Report: Forecast (2023-2028)

Market Definition

Water-based paints, also known as latex or acrylic paints, are a type of coating composed of pigments suspended in water as the primary solvent. These paints offer several advantages over oil-based counterparts, and are less toxic, emit fewer harmful fumes, and are easier to clean up with water. These paints dry relatively quickly, have low levels of volatile organic compounds (VOCs), and are more environmentally friendly. Owing to which, these paints have substantial demand for interior and exterior applications, including walls, furniture, and crafts, making them a popular choice for both DIY enthusiasts and professional painters.

Market Insights & Analysis: GCC Water-based Paints Market (2023-28):

The GCC Water-based Paints Market size is estimated to grow at a CAGR of around 3.8% during the forecast period, i.e., 2023-28. The market for water-based paints in the Gulf Cooperation Council (GCC) region has experienced notable growth and transformation in recent years, largely due to the eco-friendly characteristics, low toxicity, and ease of application associated with these paints.

Additionally, the growing real estate sector in the region, coupled with increased government investments in construction activities, presents a promising opportunity for manufacturers of water-based paints. This is largely in line with the surging initiative of the governments of GCC countries to boost sustainability in the non-oil sectors which includes the development of energy, road, and hospitality infrastructure among others. As the construction of these infrastructures would require the use of paints for better aesthetics, durability, etc., the demand for water-based paints is increasing steadily, aligned with the regional sustainability initiatives.

Furthermore, the increasing use of environmentally friendly paints in the automotive industry in the GCC region has resulted in a rise in demand for water-based paints. Leading automotive manufacturers such as BMW and Audi are actively adopting sustainable paint solutions to minimize their carbon emissions. Thus, these factors are fueling the market growth of water-based paint and are projected to continue driving its market in the coming years as well.

GCC Water-based Paints Market Driver:

Rising Demand for Water-based Paints in Wooden Furniture- The increasing demand for Water-based paints in the market is primarily driven by its rising utilization in wooden furniture. This preference can be attributed to the reduced odor and quick-drying properties of these paints, making them favorable for furniture manufacturers. Additionally, the governments of the GCC countries are focussing on increasing their economic sustainability with the development of the service sector and industrial facilities. This is leading to a rise in the development of a large number of office spaces in the region, which in turn is widely augmenting the need for wooden furniture.

Additionally, with the continued development of residential and hospitality spaces, the need for beds, tables, and other home furniture products is rising substantially. As a result, several furniture producers, including Pan Emirates, OC Home, and others, are expanding in the region to strengthen their presence and enhance income potential. This is widely supporting the demand for water-based paints to provide better aesthetics to furniture products among furniture manufacturers.

GCC Water-based Paints Market Opportunity:

GCC Region's Economic Diversification Initiatives Boost Demand for Water-based Paints – The GCC countries such as the UAE, Saudi Arabia, and Qatar, offers promising prospects for water-based paints manufacturers, as the GCC countries are striving to diversify their economies beyond the oil and gas sector. In line with their respective development vision programs, such as Saudi Vision 2030 and UAE Vision 2031, these nations are actively pursuing sustainable and balanced economic growth, which includes commercial infrastructure developments to support the expansion of various sectors and manufacturing units.

Moreover, rising efforts of the GCC country governments to provide affordable accommodation for the surging number of expatriates, by introducing various housing projects such as Sakani Programme, Como residence project, etc., is notably increasing the demand for environmentally friendly paints. As water-based paints are considered a preferred alternative in this context due to their eco-friendly nature and ability to reduce harmful emissions., their demand among the construction firms is anticipated to rise. Thus, augmenting the GCC Water-based Paints Market size during 2023-2028.

GCC Water-based Paints Market Challenge:

Harsh Climatic Conditions Restrains the Adoption of Water-based Paints in GCC– The GCC region is known for its extremely hot and arid climate, with temperatures frequently exceeding 40 degrees Celsius (104 degrees Fahrenheit). Water-based paints are vulnerable to rapid evaporation in such conditions, making it challenging to apply them effectively. High temperatures also cause issues with the paint's drying and curing processes, potentially leading to cracking, peeling, or reduced durability. This potentially restraints the adoption of water-based paints in the GCC region.

GCC Water-based Paints Market Trends:

Consumer Shift Towards Sustainable Lifestyle Driving Demand for Water-based Paints – There has been a noticeable change in consumer behavior, with a growing inclination towards a sustainable lifestyle. This shift is particularly evident among the younger and middle-aged population in the region. Consumers are now placing greater emphasis on environment-friendly alternatives in various aspects of their lives, including their choices in products. This trend has also extended to the preference for paints, as an increasing number of consumers are opting for water-based paints due to their natural composition and reduced negative impact on the environment. In response to this changing consumer demand, water-based paint manufacturers are collaborating with residential and commercial contractors to offer sustainable options. Consequently, the growing availability and product diversity in water-based paints would potentially drive their adoption among consumers. Thereby, positively influencing the revenue growth of the market. For instance,

• In 2022, Jazeera Paints partnered with a real estate future forum for enhancing the quality of life in real estate development by prioritizing building safety, security, health, and aesthetics. These partnerships and collaborations are expected to drive market growth in the coming years.

GCC Water-based Paints Market (2023-28): Segmentation Analysis

The GCC Water-based Paints Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2023–2028 at the regional level. Based on the analysis, the market has been further classified as:

Based on End User

• Construction
  • Residential
  • Commercial
• Automotive
• Furniture

The construction sector is experiencing a substantial growth rate in the GCC Water-based Paints Market, with booming investments in infrastructure development activities of residential spaces, and commercial buildings including hospitals, hotels, offices, etc. This robust construction activity is driven by the surging initiatives of the governments of the GCC countries such as the UAE, and Saudi Arabia, and others to promote economic growth through non-oil sectors. Therefore, the growing inclination of the UAE government to boost FDI in the country for different economic sectors is leading to investments in the construction of large commercial units and areas including the Red Sea Project, Jawharat Muscat, etc. This in turn is widely influencing the demand for water-based paints to provide commercial facilities with better aesthetics and ensure sustainability across GCC. For instance,

• In 2023, Kuwait approved a substantial investment of USD 3.15 billion for construction projects within the country.

Based on Type

• Natural Water-Based
• Synthetic Water-Based

In the GCC market, there has been a significant surge in demand for natural water-based paints compared to their synthetic counterparts in recent years. This trend can be primarily attributed to the environmental friendly composition of these paints, which are derived from natural materials like plant extracts, minerals, and water. In the GCC region where environmental concerns are gaining prominence, the water-based paints resonate with the increasing emphasis on sustainability and eco-friendliness.

Further, natural water-based paints typically contain lower levels of volatile organic compounds (VOCs), making them safer and less toxic during application and for long-term exposure. As a result, both construction companies and individual consumers are increasingly opting for these paints, leading to a notable rise in demand of water-based paints. To meet this growing demand, companies such as Jotun Paints and Jazeera Paints have been actively offering a range of sustainable water-based products for a wide range of industrial applications. This in turn is continuing to amplifying the overall demand for natural water-based paints in GCC.

GCC Water-based Paints Market (2023-28): Regional Analysis

Geographically, the GCC Water-based Paints Market expands across:

• The UAE
• Saudi Arabia
• Kuwait
• Qatar
• Bahrain
• Oman

Geographically, the market for water-based paints in Saudi Arabia is strongly increasing primarily due to the continuous growth in construction projects. The Saudi Arabian government is actively involved in the National Transformation Program, which aims to develop the necessary infrastructure and create an enabling environment for the public, private, and non-profit sectors to achieve Saudi Vision 2030. This comprehensive initiative focuses on addressing environmental challenges and striving towards achieving net-zero emissions.

Moreover, as part of Saudi Vision 2030, there is a significant emphasis on promoting environmentally friendly and sustainable practices. This emphasis aligns with the global shift towards more sustainable construction practices. Consequently, there is an increasing demand for water-based paints in the construction sector in Saudi Arabia. These paints are known for their environmentally friendly characteristics, as they have lower volatile organic compound (VOC) emissions and offer easier cleanup with water. Therefore, it can be concluded that Saudi Arabia holds a strong position in GCC Water-based Paints Market.

GCC Water-based Paints Recent Development:

• In 2023, Jazeera Paints, announced to start online sales in the United Arab Emirates. The online store was the first of its kind to sell paint products and construction solutions in the region.

Gain a Competitive Edge with Our GCC Water-based Paints Market Report

• GCC Water-based Paints Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & to make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• GCC Water-based Paints Market Report aids in assessing & mitigating risks associated with entering or operating level in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.