Thailand Wood Coatings Market

Abstract

Rising Exports Drive the Wood Coatings Market in Thailand

Growing wooden furniture exports, bolstered by the positive domestic economic conditions, are driving the wood coatings market in Thailand. Efficiency in terms of prompt delivery is attracting new customers, especially from the United States, which is witnessing an economy revival. With relatively tough market-entry conditions, enterprises are looking to retain their clients to maintain market share. Further, the growing construction industry and the relatively stable residential housing unit sector are fueling the demand for furniture, which, in turn, is likely to drive the wood coatings market.

This Frost & Sullivan research service provides an overview of and an outlook for the Thailand wood coatings market. It looks into the types of wood coatings -- nitrocellulose, acid-cured, polyurethane, ultraviolet (UV)-based -- as well as water-based coatings and gives a snapshot of the Thai furniture industry. It provides detailed revenue forecasts and market share analyses and is essential for both large and small market participants seeking to position themselves to earn maximum return on investments.

Levying of Anti-dumping Duties by the United States on Chinese Furniture Influences the Thai Market, especially for Bedroom Furniture

The Thai wood coatings market primarily depends on the developments in the furniture industry. "The imposition of anti-dumping regulations on Chinese bedroom furniture enterprises by the U.S. Government may encourage buyers to look for alternative markets besides Vietnam, such as Thailand and other Southeast (SE) Asian nations, where the costs are relatively less," points out the analyst of this research service.

Further, the lack of strict environmental regulations in Thailand is allowing cheaper and less eco-friendly, acid-cured, and nitrocellulose coatings to flourish in the market. Customers for furniture manufacturers in the United States prefer nitrocellulose coatings that offer a smoother finish compared to environmental-friendly waterborne and UV coatings. In contrast, in developed regions such as the United States, Europe, and Japan, stringent regulations restrict the production of inexpensive coatings and the absence of cheap labor and raw materials prevent both furniture and coatings manufacturers from competitively pricing their products.

Polyurethane Coatings Gradually Phasing Out Acid-Cured Ones

"As the demand for acid-cured paints dwindles and the global coatings industry becomes more eco-friendly, Thai enterprises have realized the importance of investing in non-hazardous coatings," highlights the analyst. "In this scenario, the relatively cheaper and eco-friendly polyurethane coatings are expected to emerge as the second largest segment after nitrocellulose."

Overall, to boost revenues, Thai wood coatings manufacturers must develop strategies to bring down their costs in the face of increasing competition from their Chinese rivals. They should focus on building long-lasting relationships with the furniture makers, participate in furniture exhibitions, test possibilities for mergers, acquisitions, and geographic expansions, provide complete solutions for wood industry, and establish their own trade names.