ID: MRFR/CnM/1573-HCR | August 2022 | Region: Global | 103 pages
Impact of COVID-19 on the Global Primer Market
The primer industry is one of the most significant market of the Asia-Pacific, Europe, and Latin America region due to major construction activities in the recent years. The primer majorly helps to prevents moisture from reaching the surface, inhibits the paint to sink in the substrate and increases the adhesion with prolonging the wear of paint on the surface of the material. Various paints and coatings manufacturers such as PPG, DuPont, Asian Paints, BASF SE, Nippon Paint Holdings Co., Ltd, Hempel A/S, and others have taken initiative to overcome their losses and has planned newer plans and marketing strategies to maximizing its sale of demand. The primer market according to industry experts is believed to come to its normal state after the lockdown is been relaxed over the region. The consumer inclination towards hygiene and cleanliness is expected to increase the demand for renovation of old houses. However, primer coats prices is expected to remain the same during the period.
In the line of production, at the outbreak of coronavirus in China, the raw materials supply was disrupted for the primer market more importantly in the leather producing countries in South-East Asia. While the epicentre of the pandemic shifted, first to Europe, then to US and the rest of the world, the economic impact has been escalated and factories in major primer manufacturing countries have been forced to close. The trade is expected to be decreasing due to low demand in major economies. The pandemic would affect the composition of global primer coats supply chains and trade and accelerate the re- or near-shoring of production.
The government organisations globally are implementing economic responses to limit the economic impact of the COVID-19 pandemic. The International Monetary Fund (IMF) has compiled a list of policy responses in 192 economies. On 26 March 2020, the governments of the Group of 20 (G20) collectively commented towards the protect lives; safeguard people’s jobs and incomes; restore confidence, preserve financial stability, revive growth and recover stronger; minimize disruptions to trade and global supply chains; provide help to all countries in need of assistance; and coordinate on public health and financial measures.
The regional governments and the global organizations are working towards opening factories and restore the working process to reduce unemployment and stabilise the economic conditions. The primer due to low consumption has been highly hit, owing to closure of construction activities, halts in production of automotive and transportation, and reduction of its usage in other applications. Additionally, due to lockdown across the countries it is hard to procure raw materials for the manufacturing process. The market for primer is however expected to be restored once the logistics and various distribution channels across the globe open which would increase the rate the consumption and demand.