Iraq Paints and Coatings Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Iraq Paints & Coatings Market Analysis

The Iraq Paints and Coatings Market size is estimated at USD 252.56 million in 2025, and is expected to reach USD 304.92 million by 2030, at a CAGR of 3.84% during the forecast period (2025-2030).

The Iraq paints and coatings industry is experiencing significant transformation driven by evolving environmental regulations and technological advancements. The government's increasing focus on sustainable development has led to the implementation of stricter environmental guidelines, particularly concerning VOC emissions from coating products. This shift is evidenced by the country's recent commitment to the 2030 Sustainable Development Agenda through a memorandum of understanding with the United Nations. The Kurdistan region has demonstrated particular progress in this area, with its power infrastructure producing approximately 400 megawatts of electricity and plans to increase production through natural gas initiatives to reach 6,700 megawatts.

The market is witnessing a notable shift in consumer preferences towards sustainable coatings solutions. Waterborne coatings are gaining significant traction due to their lower environmental impact and improved performance characteristics. The retail segment dominates the architectural coatings distribution channel, accounting for approximately 75% of sales, while direct channels represent the remaining 25%. This distribution pattern reflects the industry's adaptation to changing consumer demands and the growing importance of accessibility to eco-friendly products.

Technological innovation is reshaping the industry landscape, particularly in the industrial coatings sector. The country has seen increased adoption of advanced coating technologies, including powder coatings and radiation-curable formulations. The government's digital transformation initiatives, in partnership with UNDP, are facilitating the modernization of manufacturing processes and distribution networks. This technological evolution is particularly evident in the automotive refinish sector, where sophisticated coating solutions are being introduced to meet growing quality demands.

The market structure is evolving with increasing participation from international players and local manufacturers. The industry has witnessed significant infrastructure investments, with the government allocating USD 2.2 billion for redevelopment projects in 2023. Major developments include the announcement of a new administrative capital outside Baghdad, which encompasses plans for 75,000 housing units in its first phase. These developments are reshaping the competitive landscape and driving innovation in coating technologies, particularly in the architectural and industrial coatings segments.

Iraq Paints & Coatings Market Trends

Increasing Construction Activities in Iraq

The construction industry in Iraq is experiencing significant growth driven by the increasing population coupled with a shortage of affordable and quality housing. The Iraqi government has embarked on several ambitious construction projects, including plans to build an entirely new capital city on the outskirts of Baghdad. This new development project will provide 75,000 homes for up to 300,000 people, along with comprehensive infrastructure including shops, offices, hospitals, schools, and leisure amenities. The government has also initiated the development of Bismaya City, which stands as the largest housing project in the Middle East, aimed at addressing the severe housing shortage in Baghdad.

The construction sector has witnessed substantial activity, particularly in the southern region, which accounts for over 65% of new developments. Notable progress has been observed in provinces like Dhi Qar and Qadisiyah, which together account for more than 50% of the total construction in the southern part. The commercial sector has also seen significant development, with major completions observed in the northern part of the country, where Baghdad accounts for more than 50% share of commercial construction, followed by Anbar in the north and Muthanna in the south. The government has actively welcomed foreign investments for both residential and commercial sector development, creating a robust pipeline of construction projects across the country. The demand for construction paints and protective coatings is rising as these projects progress, ensuring durability and aesthetic appeal.

Increasing Investment in the Oil and Gas Industry

Iraq's oil and gas sector is witnessing substantial investments in infrastructure modernization and capacity expansion. Major projects include the new oil refinery in Karbala, with an estimated investment of USD 6.04 billion, which is expected to achieve a production capacity of 150,000 barrels per day. The China Petroleum Engineering & Construction Corp (CPECC) has secured significant contracts, including a USD 121 million engineering contract to modernize gas extraction facilities at the West Qurna oilfield and a USD 203 million project to treat sour gas at the Majnoon oilfield along with building a natural gas liquids plant in Basra.

The country is also making significant investments in pipeline infrastructure, with a USD 400 million agreement involving BP PLC and Eni SPA to build two seabed oil pipelines for southern exports through the Gulf. This includes replacing an aging pipeline that transports crude to the Khor al-Amaya terminal. Additionally, there are plans for a pipeline between Iraq and Jordan with an estimated cost of USD 5-7 billion. The government's commitment to reducing electricity dependence on Iran has led to negotiations with Total (a French energy company) to build two gas projects with capacities of 200 MMcf/d from Nasiriyah fields and 300 MMcf/d from Halfayah, scheduled for completion by 2025. The use of industrial paint and metal coatings is crucial in these projects to ensure the longevity and efficiency of the infrastructure.

Segment Analysis: Resin Type

Acrylic Segment in Iraq Paints and Coatings Market

The acrylic segment dominates the Iraq paints and coatings market, holding approximately 35% of the total market share in 2024. Acrylic coating resins are the most widely used polymers in the paints and coatings industry, available in various forms including water-based and solvent-based formulations. These resins offer superior properties such as transparency, high colorability, and UV resistance in coating solutions. The segment's dominance is primarily driven by the extensive use of acrylic paints in architectural applications, particularly in water-borne systems which align with growing environmental concerns. Acrylic resins are particularly valued for their versatility, being used in both thermoplastic and thermoset forms, with thermoplastic variants including solution acrylics and acrylic latex coatings. The segment is also experiencing the fastest growth rate of approximately 4% for the forecast period 2024-2029, driven by increasing demand in construction and architectural applications, as well as a growing preference for eco-friendly coating solutions with low VOC emissions.

Remaining Segments in Resin Type

The Iraq paints and coatings market features several other significant resin types including alkyd, polyurethane, epoxy, and polyester segments. Alkyd resins are particularly valued for their good weathering properties and cost-effectiveness, finding extensive applications in metal furniture and general metals. Polyurethane coatings are preferred for their excellent performance against UV and extreme weather conditions, while epoxy resins are crucial in protective industrial coatings for industrial applications due to their strength and chemical resistance. The polyester segment serves various industries including automotive, OEM, and packaging, offering benefits such as rapid drying and excellent brilliance. Each of these segments contributes uniquely to the market, serving specific application needs across different industries while continuing to evolve with technological advancements and changing market demands.

Segment Analysis: By Technology

Solvent-borne Segment in Iraq Paints and Coatings Market

The solvent-borne technology segment continues to dominate the Iraq paints and coatings market, accounting for approximately 48% of the total market revenue in 2024. This significant market share can be attributed to several advantages offered by solvent-borne coatings, including their lower susceptibility to environmental conditions like temperature and humidity during the curing phase compared to water-based alternatives. These coatings are particularly preferred for applications involving doors, cabinets and furniture, metal doors and railings, industrial equipment, and maintenance of steel structures. The organic solvents in these coatings facilitate proper application, drying, and formation of regular coating films, making them especially suitable for industrial applications where performance requirements are stringent. However, the segment's growth is being moderated by increasing environmental concerns and governmental regulations supporting waterborne coatings alternatives due to the higher VOC emissions associated with solvent-borne coatings.

Water-borne Segment in Iraq Paints and Coatings Market

The water-borne technology segment is emerging as the fastest-growing segment in the Iraq paints and coatings market, projected to grow at approximately 4% during 2024-2029. This growth is primarily driven by increasing consumer awareness about VOC emissions and growing environmental regulations in the region. Waterborne coatings are gaining significant traction due to their eco-friendly nature, lower VOC content, mild odor, and fast-drying properties. Major players in the market, such as Al-Tabieaa Company and AkzoNobel, are actively promoting eco-friendly paints and zero VOC paints, further accelerating the segment's growth. The increasing adoption of water-borne systems is also supported by their favorable properties such as increased availability and versatility in various architectural and automotive applications, though they face some challenges in terms of application complexity and system compatibility compared to solvent-borne alternatives.

Remaining Segments in Technology Segmentation

Other technologies in the Iraq paints and coatings market primarily include powder coatings and radiation curable formulations. These technologies are gaining attention due to their unique advantages in specific applications. Powder coatings technology is particularly noteworthy for its eco-friendly nature, generating no VOCs, and finding applications in automotive, woodwork and furniture, building and construction, electrical, and domestic appliances industries. Radiation curable formulations are distinguished by their cross-linking properties using high-intensity, ultraviolet light, or electron beam energy sources, offering benefits such as low energy consumption, reduced environmental impact, faster curing time, and smaller application equipment footprint. The growing awareness about eco-friendly alternatives continues to drive the adoption of these alternative coating technologies in the Iraqi market.

Segment Analysis: By End-User Industry

Industrial Segment in Iraq Paints and Coatings Market

The industrial segment dominates the Iraq paints and coatings market, accounting for approximately 44% of the total market revenue in 2024. This segment's prominence is primarily driven by the country's extensive oil and gas sector, where protective functional coatings are extensively used in refineries, pipelines, and storage facilities. The segment's growth is further supported by ongoing infrastructure development projects, particularly in provinces like Basra, Dhi-Qar, and Babil, where numerous power plants, industrial facilities, and bridges are under construction. The oil and gas sector alone accounts for about 53% of the protective coatings demand within the industrial segment, followed by infrastructure at 21% and power generation at 14%. The segment's robust performance is also attributed to the government's initiatives to diversify the economy beyond oil dependency, leading to increased investments in various industrial sectors and infrastructure development projects.

Remaining Segments in Iraq Paints and Coatings Market End-User Industry

The architectural segment represents the second-largest portion of the market, with applications spanning both residential and commercial construction projects. This segment is particularly strong in both interior and exterior applications, with professional applications dominating over DIY usage. The automotive coatings segment, while smaller, plays a crucial role in the market, primarily driven by refinishing applications rather than OEM coatings, reflecting the country's significant automotive repair and maintenance sector. The wood coatings segment serves the furniture and construction industries, offering various solutions from traditional solvent-based to modern water-based formulations. Other end-user industries, including marine applications, contribute to the market's diversity, particularly in areas like Basra where shipyard activities and port development projects create specific coating demands. Each of these segments contributes uniquely to the market's dynamics, influenced by factors such as urbanization, infrastructure development, and changing consumer preferences.