Alkyd Coatings Market Size & Share, By Application (Architectural Coatings, Automotive Coatings, Industrial Equipment, Marine & Protective Coatings, Decorative Coatings); Resin Type; and End user - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

Alkyd Coatings Market Growth Drivers and Challenges:

Growth Drivers

• Rising demand from the construction and automotive sectors: The expansion of global infrastructure and automotive industries, particularly in developing economies, provides a key demand driver for alkyd coatings. These coatings have been highly treated from a functional, technical, and economic (i.e., price) point of view. According to the U.S. Census Bureau, U.S. construction spending will increase by 6.6% in 2024 to $2.2 trillion, resulting in an increase in coatings consumption for metal, wood, and concrete applications.
• Sustainability and carbon reduction initiatives: Global decarbonization movements are putting pressure on alkyd coatings producers to reformulate their products using bio-based polyols and low-VOC solvents. According to the OECD, the green chemicals industry will grow by $11 billion by 2027, which will influence the use of sustainable coatings. Furthermore, large producers have committed to supporting NAFTA net-zero goals through their reductions in the carbon footprint of their coatings manufacturing, and would continue to experience growth through sustainability.
  Vitality of Expanding Operational and Manufacturing Capacities

  Increasing the production of alkyd coatings must be a priority now to keep ahead of the increasing global demand for coatings. This will be driven by growth in the construction sector (41% of coatings demand) and the automotive sector (21% growth in Asia). The coatings market is expected to grow at more than 4.6% CAGR from 2024 to 2030, and it will require a substantial investment of capital into additional capacity. Sustainable formulations now see 31% of R&D budgets compliant with EPA regulations.  The top producers' data are listed below:

Top 10 Global Alkyd Coatings Producers (2024)

Alkyd Coatings Production Data Analysis (2019–2024)

Production Volumes (Million MT)

Emerging Trade Dynamics and Market Prospects

The global landscape of chemical trade has been remarkably altered from 2019 to the projected landscape for 2024, driven by not only local and international factors but also geopolitical tensions, policy changes, and the COVID-19 pandemic. After a period of uncertainty, there was recovery, and U.S. chemical exports increased by 25.4% in 2021. The alkyd coatings market was worth $24.2 billion in 2023 and is expected to reach a value of $44.4 billion by 2032, due to growth in the construction and automotive sectors. In addition, specialty chemicals have seen impressive numbers. U.S. exports of specialty chemicals to Europe increased by 26.2% in 2021 alone. All in all, the chemical trade has shown resilience; it has been exposed to challenges but has also embraced new opportunities. Trade data has been mentioned below:

Alkyd Coatings Trade Data (2019–2024)

Key Trade Routes and Statistics

Specialty Chemicals Trade Growth (2018–2023)

Impact of COVID-19 on Chemical Trade

Japan's Alkyd Coatings Trade Dynamics (2018–2023)

Japan's alkyd coatings export activity has shown variance in performance across its trading partners. Substantial growth was recorded in Southeast Asia and India, responding to ongoing construction and automotive sector growth in these markets. The U.S. and Europe likewise grew steadily, but at lower levels. Concurrently, Japan increased sourcing from its major trading partners—relative spending on chemical imports has increased, but most notably in specialty chemicals from Germany, and raw materials from Saudi Arabia. Overall, Japan’s chemical trade surplus is decreasing; while exporting coatings and petrochemical products strongly, Japan is seeing increased dependency on imported feedstocks. Trade data has been mentioned below:

Japan's Alkyd Coatings Exports by Destination (2019–2023)

Japan's Chemical Imports by Supplier (2019–2023)

Japan's Chemical Trade Balance (2018–2023)

Challenges

• High raw material costs and pricing pressures: The fluctuation in petrochemicals (the main components in alkyd resins) can compress profit margins and make it challenging to compete with less expensive alternatives, such as water-based coatings. The World Trade Organization noted a 12% increase in alkyd resin prices in 2023 based on crude oil price volatility. Sherwin-Williams justified a price rise of 8% for all alkyd coatings in 2023 to help offset rising linseed oil and soybean oil costs; this even led to a 5% decrease in demand in price-sensitive Asian markets.
• Trade barriers and import restrictions: Tariffs and non-tariff barriers, such as labelling and testing, are implemented by each country and will cause delays. China recently added additional lead and cadmium testing for its GB 24409-2020 standards, which delayed AkzoNobel's product from being launched by an additional six months in 2022. There is currently an 18% import duty for any country importing an alkyd resin into India that prevents foreign importers from using their products domestically, and consequently favours local suppliers such as Asian Paints.