Global industrial production increased by around 2% – but with clear differences across regions and sectors. In the automotive industry, production rose by more than 3% overall, according to current estimates, while declining by more than 3% in Europe and 4% in North America. In contrast, production increased significantly in Asia (+7.8%) and South America (+8.3%). The output of durable consumer goods was partly down, while the electrical and electronics industry, especially in China, reported strong growth.

Development of the paint and coatings industry

The TOP 11 global paint and coatings players reported a 2% revenue decline in EUR terms in the first half of 2025. In line with the global economic trend, the second quarter showed weaker performance for most companies compared with the first quarter.

However, negative currency effects and divestments meant that the decline in organic sales volumes (volume changes excluding acquisitions and divestments) was only –0.5%. This can be seen as an indicator of the global market’s volume development for paints and coatings in the first half of 2025.

Results of individual players

PPG was able to just maintain its market-leading position despite selling its US decorative business to an investor. Losses in the OEM segment were offset by growth in Protective/Marine coatings. As a result, the company’s organic sales volume remained almost stable.

Kansai Paint achieved the highest revenue growth among the TOP 11 on a EUR basis (+2.7%). This was mainly driven by the integration of Weilburger in the General Industrial segment and strong growth in OEM coatings. In contrast, there was a significant revenue decline in the Decorative and Protective/Marine segments. The latter is notable, as many manufacturers reported positive development in Protective/Marine, particularly in Asia.

Nippon Paint posted a revenue decline, largely due to weakness in the Decorative segment. The Chinese market in particular showed clear weaknesses. The Industrial Coatings segment, however, grew by around 9% in EUR terms.

Masco, a US-based manufacturer, recorded the largest revenue drop, down 15% in EUR terms. This was due partly to the sale of business units and partly to the weak US market for architectural paints and coatings.

Key trends at a glance

Overall, the decorative coatings market declined significantly worldwide, while industrial coatings showed slight growth. Manufacturers with a regional focus on Asia/South America or with a strong industrial coatings portfolio performed better than the average.

The strategic direction and segment mix of the two market leaders are particularly interesting. PPG is investing in industrial coatings and divesting decorative businesses. Consequently, the company already generated 76% of its revenue from industrial coatings in the first half of 2025. Sherwin-Williams is expanding its Decorative and General Industrial (e.g. wood coatings) segments, which together accounted for almost 80% of revenue in the first half of 2025. Another decorative acquisition has already been agreed: Sherwin-Williams is set to acquire BASF’s decorative coatings activities in South America this year.

Most companies reported a decline in their absolute or relative operating profit (EBIT) compared with the previous year. For the remainder of 2025, manufacturers do not expect major changes. Company forecasts largely indicate a continuation of the trends seen in the second quarter of 2025.