BRIC paints and varnishes
market valued at $29bn
The paints and varnishes market in the
BRIC (Brazil, Russia, India and China)
countries was valued over US$29 billion
in 2011, representing an increase of 56.3
percent from the value recorded in 2007,
according to a new report released by Re-portlinker.com. The market recorded positive annual growth rates every year
during the review period (2007-2011),
apart from in 2009 when it declined by
3.2 percent due to the adverse impact of
the global economic crisis. Water-based
paints and varnishes accounted for the
largest share of the BRIC paints and varnishes market in 2011 with a market
share of 46. 4 percent. The second largest
category in the market was solvent-based
paints and varnishes, which recorded a
market share of 26. 6 percent. China was
the largest paints and varnishes market
among the BRIC countries during the review period. The Chinese paints and varnishes market grew rapidly and recorded
a CAGR of 16.90 percent during the review period.
The BRIC countries have played a
major role in the growth of the paints and
coatings market during the review period,
as population growth, rapid urbanization,
increasing disposable income and focus
on nuclear or smaller families have all
combined to considerably raise demand
for residential construction.
Global sporting events such as the
2014 FIFA World Cup and the 2016
Olympic Games in Rio de Janeiro will require substantial construction activity in
infrastructure, commercial and residential
sectors over the forecast period which will
stimulate growth for paints and varnishes.
Brazil is undergoing an extensive period of reconstruction, with plans to complete 12,265 infrastructure projects
throughout the country by the end of
2016. An investment of US$800 billion
for infrastructure spending is expected in
Brazil over the forecast period, which will
create a large demand for paints and varnishes in the country.
Russia is preparing to host major international events including the 2018
FIFA World Cup, the 2014 Winter
Olympic Games in Sochi and the 2012
APEC Summit in Vladivostok which will
require substantial construction activity
in infrastructure, commercial, and residential sectors over the forecast period
which will stimulate the growth for
paints and varnishes.
The Indian government announced
an investment of US$514 billion
(INR23.5 trillion) in its 11th five-year
plan, covering the 2007-2012 period. In
addition, the government has increased
infrastructure spending, from seven percent of GDP to 10 percent, which indicates the potential for increased
infrastructure construction activities that
could require paints and varnishes.
The level of construction activity in
China will increase due to increasing FDI,
rapid urbanization, ongoing industrialization, the expanding manufacturing sector
and government efforts to develop infrastructure. This will create demand for
paints and varnishes in China, enabling
the country’s paints and varnishes market
to achieve a CAGR of 12.91% percent
over the forecast period.
GIA says growth in end-use
markets drives the pigments
dyes industry
The market for pigments and dyes responds to the coloring needs of a wide
range of end-use industries, ranging from
paints and coatings to construction. With
robust demand in key markets of paints
and coatings, plastics, paper and printing
inks, the pigments market is forecast to
register steady growth in the coming
years, according to a new report titled,
“Pigments and Dyes: A Global Strategic
Business Report,” published by Global Industry Analysts Inc.
Aided by a choice for brighter aesthetics and higher pigment concentra-
tion, the pigments industry is expected
to propel ahead at a steady rate. The industry is witnessing a fundamental shift
in the form of greater preference for
high performance metal-based inorganic
pigments, and away from solvent-based
raw materials. The dyes market, meanwhile, largely depends upon the fortunes
of its principal end-user, Textiles, which
account for about 70 percent of the
total demand.
After a brief decline in volume and
values, in 2008 and 2009, which was a
result of the global economic downturn,
the future for global pigments and dyes
market appears to be bright. Global
market for pigments and dyes began to
show signs of recovery in 2009 and registered positive growth in 2010, albeit by
a small margin. The market, however, is
expected to post significant growth in
terms of volume as well as value in the
coming years. Surge in the coming years
would be fueled by growth in the paints,
inks, coatings, and construction industries. Growing demand for high quality
value-added pigments is one of the key
factors expected to result in a spurt in
growth. Further, the market, although
mature, would also receive a boost as
companies increasingly feel the need to
evolve and design their products in sync
with changing requirements for new and
emerging technologies. Higher rates of
capacity utilization are expected to further drive prices upwards. Mounting energy costs would also considerably
impact global pigments consumption.
Asia-Pacific represents the largest and
the fastest growing regional market for
pigments and dyes worldwide, as stated
by the new market research report. A
key trend witnessed in the recent past is
the migration of manufacturing capacity
from the West to low-cost countries in
the Asia-Pacific region, driven mainly by
stringent environmental compliance issues. China will continue to be the single
largest and fastest growing market. CW
