The paint sector, established in 1911, is characterized by independent production and business units, which have been established as market opportunities have risen. With rapid growth in the number of participants, there has been a stiff competition between the firms in the industry.
There are estimated to be over 100 direct manufacturers, 67 of which are considered significant in size. The members of the sector own total assets estimated to be in the order of PHP 4.5 Billion.
Technology
The Philippine Association of Paint Manufacturers (PAPM) is one industry group, which has recognized that there is a need to upgrade facilities in the sub-sector. It has been working with the Surface Coating Research Development Center to upgrade product standards, product testing and certification, technical training and consultancies, and the 5-years exposure test.
Production & Technical Aspects
Because Metro Manila is the hub of construction and industrial activity in the country, the majority of the firms are located in the Metro Manila area. In addition, the concentration of firms in the metropolis can be accounted by the availability of sources of raw materials and access to better developed systems of power, transport and communication facilities than those available elsewhere in the country.
In the Philippines, there is no distinction between interior and exterior paint. The majority of the paints sold are used for both applications. Water-based coatings make up 40% of the market, and these are dominated by 100% acrylic and vinyl acetate/acrylic. On the other hand, alkyl coatings dominate the solvent sector and these are used on wood and metal surfaces. The overall quality of paints produced in the Philippines is one of the best in Asia.
Most of the sector’s production input (90%) are imported, with the exception of synthetic resins, most of which are produced locally. However, monomers, which are used for the production of these synthetic resins, are wholly source from abroad.
Outlook
A trend towards the greater use of water-based paints can be expected over the next ten years. Environment-friendly paints are also making inroads in the Philippines. Increasing consumer consciousness will lead to significant demands for lead-free paints in the future.
As technology licensing and joint ventures become normal, it becomes increasingly necessary for the applied developments of coatings to suit local conditions and to match more closely the needs of local end-users.
Even as technological advances suggest even increasing ways of improving paint product performance, the continuing threat of paint substitutes should also be considered. Nowadays, there is a trend towards the use of glass, wall curtains, wallpapers, and cloth.
