Thailand’s paint and coatings sector enters H2 2025 buoyed by infrastructure recovery and green momentum

Thailand’s paint and coatings sector has entered the second half of 2025 buoyed by a rebound in infrastructure-related demand and a decisive shift towards environmentally friendly products, according to industry experts speaking to The Coatings Group. However, persistent cost pressures and a cooling real estate market may restrain overall growth.

According to Papichat Tangcaravakoon, President of the Thai Paint Manufacturers Association (TPMA), demand for protective and industrial coatings picked up in the second half of 2024, driven by government-led infrastructure projects.

“On the industrial side, demand has been supported by government-led infrastructure projects," he told The Coatings Group. "It helped drive volume for protective coatings and other construction-related systems.”

In 2024, the Thai coatings industry was valued at approximately USD 1.34 billion, with projections indicating growth at a compound annual growth rate (CAGR) of 3.2%, reaching USD 1.72 billion by 2032, according to IMARC Group, a global market intelligence provider headquartered in Noida, India (1).

Forecast data from another Indian research firm, 6Wresearch (based in New Delhi), also suggests that the Thai paint and coatings market will experience steady momentum between 2025 and 2029, with annual growth expected to accelerate from 2.65% in 2025 to 12.86% by 2029 (2).

EV, automotive demand and a greener push

The automotive coatings segment has been among the bright spots in Thailand’s paint and coatings market in early 2025. International and regional carmakers – especially electric vehicle (EV) manufacturers – are expanding capacity in Thailand and require specialist coatings (3). Major automakers with plants in the Southeast Asian kingdom include Toyota, Honda, Nissan, Isuzu, and Ford.

In March 2025, the USA’s PPG Industries inaugurated a new facility in Samut Prakan, south of Bangkok, with an annual capacity to produce 2,000 tonnes of waterborne automotive basecoats and primers. The plant features an automated spray application centre aimed at supporting EV and other automotive manufacturers in Southeast Asia (4).

Alisha Bellezza, PPG Senior Vice President for Automotive OEM (original equipment manufacturer) Coatings, said in a statement: “Southeast Asia is experiencing rapid growth in the automotive sector,” citing Thai government support for EVs - including subsidies and excise duty reductions for consumers - as well as growing Chinese OEM interest, as key factors.

Thailand remains one of Southeast Asia’s largest paint exporters, supplying decorative and industrial coatings to Vietnam, Cambodia, and Myanmar, for example.

This market will be one of the key areas of focus of the Asia Pacific Coatings Show, in Bangkok, Thailand, between September 3-5 (2025), organized by The Coatings Group.

As environmental consciousness grows, manufacturers are not only responding to market signals but actively positioning themselves ahead of anticipated regulatory changes, local industry players noted.

A comprehensive draft Climate Change Act, though not yet enacted, proposes emissions trading, carbon taxes, environment-focused import duties, and more. These proposals have already prompted a shift towards greener formulations - particularly water-based systems and heat-reflective coatings.

“One trend that’s gaining momentum is the shift towards energy-efficient and low-VOC systems,” TPMA’s Tangcaravakoon said, citing the market’s growing readiness for stricter environmental standards.

He added that the shift is also driven by demand from export markets and corporate clients seeking certified, environmentally responsible coatings: “The industry as a whole is becoming well aware that sustainable coatings are no longer a niche - they’re becoming a business requirement,” he said.

Nippon Paint, a leading regional manufacturer, continues its partnership with the Bangkok Metropolitan Administration (BMA) by donating THB 10 million’s (USD 306,000) worth of durable, low-VOC paints for bridge refurbishment and urban beautification projects across the capital, according to Thai media reports from last year (5).

Challenges remain

Despite these positive developments, paint and coatings manufacturers, especially SMEs, remain squeezed by high input costs. TPMA’s Tangcaravakoon said that prices for imported pigments and solvents remain largely volatile, even as titanium dioxide costs have stabilised from 2023 highs.

“Large manufacturers have been able to absorb some of these costs through scale, supplier contracts, or portfolio adjustments,” he said. “Smaller producers have less room to manoeuvre and face tighter pricing competition, particularly in the architectural segment, where price sensitivity remains high.”

“All of this has fuelled interest in local sourcing, second-sourcing [buying from two or more suppliers to mitigate risk], and raw material reformulation as ways to help manage volatility moving forward,” he told The Coatings Group.

Industry experts note that the Thai government’s broader economic stimulus plans including a THB 500 billion (USD 15.3 billion) public investment package focused on roads, utilities, and restoration works (6), released in June before a July diplomatic scandal involving Cambodia led to the suspension of Prime Minister Paetongtarn Shinawatra - are likely to offer auxiliary support for coatings demand by driving infrastructure activity.

This comes at a time when the architectural segment is facing headwinds in 2025. Tangcaravakoon noted that “the real estate market has slowed significantly,” and this is “starting to weigh on sales of architectural paints, particularly for new residential builds.”

In early 2024, Thailand’s residential market index fell to its lowest level in 12 quarters, dropping to 76.8 from 79.3 a year earlier, as both supply and demand slowed, local media reported (7).

Malaysia

Neighbouring Malaysia is also seeing momentum build in its paint and coatings market, driven by a resurgence in construction activity.
Market revenue is projected to reach Malaysian Ringgit MYR 3.29 billion (USD 697.14 million) this year, expanding at a compound annual growth rate (CAGR) of 3.92% through to 2029, according to Germany-based data firm Statista (8).

Construction remains a key demand driver, supported by residential refurbishments, new data centres, and major infrastructure projects such as the East Coast Rail Link — a multibillion-dollar, China-backed corridor linking Peninsular Malaysia’s east and west coasts (9). Investment in digital infrastructure is also contributing. Industry sources report that Malaysian projects by Amazon Web Services (10) and Microsoft (11) are increasing demand for industrial coatings.

Refurbishment “will be a growing segment in 2025,” said Nippon Paint Malaysia General Manager Tay Sze Tuck in a statement earlier this year, citing ageing buildings and rising demand for long-term waterproofing solutions.

Global players are also deepening their footprint in Malaysia’s paint and coatings sector. Dutch major AkzoNobel, for example, opened a regional R&D centre in Nilai, near Kuala Lumpur, in June - focused on waterborne decorative coatings, as part of its strategy to localise innovation for Southeast Asia (12).

Meanwhile, paint and coatings companies are monitoring shifts in government policy. In June, Malaysia’s Prime Minister Anwar Ibrahim stated that the government is open to reviewing the country's e-invoicing requirements (introduced in 2023) to ensure they “do not become a burden” on small businesses (13).

The country also expanded its Sales and Services Tax (SST) from 1 July 2025, with construction services now subject to a 6% rate, for example (14). “We do see an effect,” said Chiu Hui Shuen, Regional Director of Sales and Marketing at Selangor-based coatings manufacturer Syncoates (M) Sdn Bhd. However, he noted that the SST and invoicing requirements were “mostly one-time implementation costs...”

Indonesia

To the south, in Southeast Asia’s most populous market (281 million people), Indonesia’s paint and coatings industry is contending with rising competition from imports, tightening environmental regulations, and shifting market dynamics.

The sector is forecast to grow steadily, with annual growth expected to rise from 7.22% in 2025 to 9.68% in 2029, according to 6Wresearch (15).

Infrastructure development, housing demand, and industrial applications - especially in automotive and construction, are the primary drivers of growth. Indonesia’s paint and coatings market is projected to expand by 8.42% by 2027, according to the same report.

However, local manufacturers face high input costs while competing with cheaper imported finished paints, mainly from China, South Korea, and other ASEAN countries, which benefit from zero tariffs under regional trade agreements.

A key concern is that “nearly 90% of raw materials are imported,” said Markus Winarto, Secretary General of the Indonesian Paint Manufacturers Association (APCI). “Finished paints come in duty-free, but our inputs are taxed. It’s a clear disadvantage.”

Earlier in 2025, India’s Berger Paints acquired Asian Paints Indonesia’s factory - signalling the exit of Indian rival Asian Paints from a saturated market characterised by thin margins and rising costs.

Despite these challenges, infrastructure development continues to anchor demand in Indonesia. The Ministry of Public Works and Housing has plans to build 3 million homes nationwide by 2029, which is expected to boost sales of architectural and protective coatings.

The architectural coatings segment alone was valued at USD 1.67 billion in 2024, with a projected CAGR of 3.4% through 2028, according to India-based market intelligence and advisory firm Mordor Intelligence (16).

“Paint protects assets,” said APCI advisor Yoyok S. Hermanto. “Even in a weak economy, developers are prioritising durable, quality coatings.”

To stay competitive, local producers are investing in automation and sustainability. Upgrades include sensor-based dosing systems, automated mixing lines, and laser-assisted surface preparation - all designed to reduce waste and improve consistency.

Sustainability is also gaining traction. Solar-reflective and water-based coatings are in increasing demand, particularly for infrastructure and commercial buildings.

“Heat-reducing paints lower building energy use,” Hermanto said. “Public and private buyers are asking for them.”

However, bright road markings still rely on lead-based pigments, and although Indonesia has pledged to eliminate lead in decorative paints by 2030, full compliance remains elusive.

“Switching to zero-lead paints isn’t just a formula change,” Hermanto explained. “It requires cleaner supply chains, reduced water and electricity use, and local raw materials - which we still lack.”

The Philippines

The Philippines is considered a niche market within the Asia-Pacific region, due to its relatively limited industrial and construction footprint.

“While the country is an emerging industrialised economy, much of its industrial activity is centred on processing and assembly, particularly in electronics, often led by foreign multinational corporations. This results in a more specialised and lower-volume demand for paints and coatings, especially in industrial applications,” said Shankar Rampalli, Project Manager at UK market research firm GlobalData.

Speaking to The Coatings Group, he added: “Nevertheless, factors such as rapid urbanisation, a booming construction industry, and increased demand for automotive coatings are driving the expansion of this paint market.”

Germany-based chemical and ingredient distributor Brenntag also views the Philippines’ paints and coatings sector as entering a dynamic phase of growth. Among the driving forces, Brenntag cited infrastructure development, urbanisation, and a shift towards more sustainable and high-performance products.

“From decorative paints to industrial coatings, we are seeing increasing demand for solutions that deliver durability, environmental compliance, and enhanced functionality,” said Sanjay Karkhanis, Brenntag’s Global President for Materials Science and Specialties. He added that the company’s technical experts work closely with coatings customers in the Philippines “to develop tailored solutions that improve product performance while meeting evolving regulatory standards, including the drive to reduce VOC emissions and adopt greener chemistries.”

By Iman Muttaqin, Jens Kastner and Ahmad Pathoni