Slower growth in the
Brazilian coatings industry in 2011
After positive results in 2010, the Brazilian coatings industry expected positive
growth in 2011. However, the industry’s
growth rate diminished dramatically this
year, as has been the case with the economy, according to ABRAFATI, the Brazilian coatings manufacturers association.
During the ABRAFATI Forum of the
Coatings Industry, held August 25, 2011
in São Paulo, the announced forecasts presented more modest numbers.
“In the first half of this year, sales of
residential coatings increased by only 0.5
percent compared to the same period in
2010. We should see a slight increase this
second semester, that will lead to a one
percent increase for the year,” said Dilson
Ferreira, executive president of
ABRAFATI.
After positive growth in 2010, which
exceeded 10 percent, the situation this
year is different. “Due to the present un-
certainties and the delicate international
scenario, consumers are adopting a more
conservative attitude by delaying pur-
chases of coatings for remodels and self-
building,” said Ferreira. “Similarly,
retailers avoid keeping stock and replace
products more slowly. However, we be-
lieve business will pick up at a stronger
pace next year, when we expect a four per-
cent increase in sales.”
Among the positive factors that will
maintain the high level of sales of resi-
dential coatings—above one billion liters
a year—is the priority the Brazilian gov-
ernment has given to construction as an
instrument to foster economic and social
development, as has been evidenced by
the launch of the housing program
Minha Casa Minha Vida 2 and the ex-
tension of the IPI tax reduction (Indus-
trialized Product Tax).
The overall growth of the coatings industry this year should be 1.3 percent,
reaching 1.377 billion liters, whereas a
four percent expansion of sales is expected in 2012. “The outlook is still positive, considering that the unique
characteristics of 2010 should not be re-
peated any time soon,” said Ferreira. “It
is important to stress that, in addition to
the great events we will have until 2022,
which will ensure a sustainable growth,
the structural reasons that stimulate
sales will still be present for many years
to come. Among these factors, the most
noteworthy are: investments in housing
and infrastructure, the amplification of
segments related to oil exploration and
distribution, the strengthening of the in-
ternal market and the growth of the mid-
dle class.”
ABRAFATI’s 2011 International Coat-
ings Congress and International Exhibi-
tion of Coatings Industry Suppliers will be
held this year from Nov. 21-23 at the
Transamerica Expo Center in Sao Paulo,
Brazil. For more information visit
www.abrafati2011.com.br.
Fillers market to grow to $22.5
billion by 2018
Modern fillers are increasingly used to improve the technical properties of filled materials. As a result, the filler market will
grow by about 2.5 percent per year, according to Ceresana Research. Emerging
countries, spearheaded by China and
India, offer the greatest opportunities.
Ceresana’s revised market study on fillers
forecasts the global filler market to earn
revenues of approximately US$22.5 billion in 2018.
Manufacturers and processors of fillers
in the Asia-Pacific, South America and
Eastern Europe benefit from large mineral
deposits that can be exploited at low costs
and from dynamics in their downstream
industries, such as plastics, rubbers, papers, paints and varnishes, as well as adhesives and sealants.
Developments in the demand for individual types of fillers, such as ground or
precipitated calcium carbonate (GCC and
PCC), carbon black, kaolin and talc, vary
from region to region. While Europe will
see the use of PCC increase the most, the
recovery of the rubber industry in North
America is generating stronger demand
for carbon black. In the other world regions, the most widely used GCC fillers
will continue to see the biggest gains.
For more info visit
www.ceresana.com/en/market-studies/additives/fillers-new.
$43.52 billion Asia Pacific
paints and coatings market to
grow at 11 percent
Research and Markets has reported in
Frost & Sullivan’s “Strategic Analysis of
the Paint and Coatings Market” that the
$43.52 billion paints and coatings market
in the Asia Pacific region will to grow at a
steady compound annual growth rate
(CAGR) of 11 percent to reach $53.55 billion in 2011.
The report says the paints and coatings
market in the Asia Pacific has struck a purple patch due to the impressive growth in
the end-user segments of construction,
commercial, public buildings and residential real estate. The buoyant economic conditions in most Asia Pacific countries,
especially in China and India, have had a
bearing on the fortunes of these sectors and
thereby on the paints and coatings market.
The high inflow of foreign investments in
these two countries and their reduced operating costs are greatly helping to increase
the profit margins of operators in those
countries. However, in countries such as
Vietnam, Indonesia and the Philippines
that have lower purchasing power, there is
insubstantial demand for premium-grade
and high-performance paints. Paint manufacturers’ margins will also feel the pinch
of the rising prices of raw materials.
Stringent environmental regulations
have a role to play in limiting global paint
trade, as the restriction on the use of hazardous materials in the paint composition
limits product innovation, the report also
says. Foreign investors will also be deterred by the unstable social, economic
and political situation in a country. Do-
