Coatings World - April 2011

Brazil’s decorative paints market to grow

Brazil’s decorative paints and coatings market was worth $2,077.3 million in 2010, according to Frost & Sullivan. With a compound annual growth rate of 5. 8 percent, this is likely to increase to $3,262.6 million by 2017, the research firm said. Almost 100 percent of local consumption is produced locally, while the exports contribute to approximately five percent of the total revenues, and are concentrated on big multinational companies.

The segment corresponds for 63.8 percent in terms of revenue of the total paints and coatings market in 2010. The industrial segment held the second-largest position, with 21. 4 percent, followed by the refinish and automotive sectors, with 14. 8 percent all together. In 2009, the decorative segment was the least affected by the economic crisis, with a revenue loss of 2.4 percent, whereas the total market lost five percent.

The decorative paints and coatings market is highly fragmented, with the top five participants representing about 80 percent of the market, and the 10 biggest players, 90 percent of the market. The market is primarily driven by the construction and do-it-yourself (DIY) industries. “Government’s major investments in social housing and infrastructure, and taxes reduction for the construction industry drove the market growth in 2009 and 2010, preventing it from witnessing a major revenue slump as the industry shrank 2.4 percent,” said Caio Carvalho, Frost & Sullivan research analyst.

The insufficient local raw material sup-
ply, which can meet only approximately 40
percent of the total industry’s needs, is a
major market restraint. Investments in this
field may raise revenues, profit and margin.
In Brazil, the per capita consumption of
paints is approximately liters, whereas it is
15 liters per capita in the U.S. and more
than 20 liters per capita in other developed
countries. This low paint consumption is a
challenge to the market participants, as
there is a cultural barrier and paint is not
regarded as a necessary good.

Ceresana analyzes the
adhesives market

Market research institute Ceresana Research, Konstanz, Germany, has published a report that analyzes the European adhesives market. According to Ceresana, Germany accounts for approximately 18. 5 percent of all demand for adhesives in Europe, followed by France, Italy and the UK. However, the highest growth rates are seen in Russia, Poland and Turkey. The firm said it expects European adhesives revenue will rise to € 8. 25 billion by 2017. In Western Europe, the demand for adhesives is especially growing in Germany, Finland and Sweden.

Paper, packaging and the construction
industry are the most important fields of
application. New constructions and pub-
licly financed infrastructure projects play an
essential role for the demand for adhesives
in the construction industry. Due to EU sub-
sidies, this effect can be felt more clearly in
Eastern than in Western Europe. An ongo-
ing trend is the enhancement of energy effi-
ciency and a reduction in CO2 emissions.
Adhesives are increasingly needed for the
renovation of buildings.