Global Coatings Market to Reach $107 Billion
by 2017, Predicts Companies and Markets
According to Companiesandmarkets.
com, a leading market research company, the global coatings market has been
forecast to increase at a compound annual growth rate (CAGR) of 5. 46 percent
through to 2015, with the industry set to
hit 8. 7 billion gallons and $107 billion by
the year 2017.
Other key finding from compa-
niesandmarkets.com:
• Key factors contributing to growth
within the painting market include the
recovery of global economies from the
recent economic turmoil, rapid indus-
trialization, increasing demand from
end-use sectors, such as automotive and
construction, the increasing stringency in
regulations, rising competition, growth in
unique formulations, and technological
and product developments.
• The recent downturn in the global
economic market has mauled the coatings industry, as was the case with
several other sectors. The global coatings market, as a whole, along with all
major segments witnessed a substantial decline in volume and value sales
during the downturn. However, the
impact of the recession varied among
each segments.
• Production within the global coatings market is witnessing a major shift
away from the developed regions of
Europe and the U.S., to the developing economies, such as Asia, comprising Korea, India and China. Sustained
demand from the developed countries,
in addition to the burgeoning demand
from these regions, is contributing to
the overall expansion of the coatings
market worldwide.
• The mergers and acquisitions activity that has been witnessed in the
past decade in the coatings industry
has made the big players bigger and
smaller players finding the going extremely tough. Mature markets tend to
form an anti-inflationary environment
and this compels companies to reduce
costs, and at the same time, enhance
productivity. As a result of this, larger
companies are left with no alternative
but to integrate respective operations
into a single entity in order to maintain synergies, cut down on costs and
to jointly initiate R&D and marketing
efforts to increase sales.
IRL Publishes Profile of
the Central American and
Caribbean Paint Industry
IRL has announced the publication of a
new and fully updated edition of its pop-
ular “Profile of the Central American and
Caribbean Paints Industry.”
This report covers the markets for
paints and coatings in eight Central
American countries (Belize, Costa Rica,
El Salvador, Guatemala, Honduras,
Mexico, Nicaragua and Panama) and
eight Caribbean countries (Bahamas,
Barbados, Cuba, Dominican Republic,
Haiti, Jamaica, Puerto Rico and Trinidad
and Tobago). It segments each country
market into nine mainstream coatings
sectors for 2011, and also includes over-
all market forecasts to 2016.
• Mexico is by far the largest country market in the Central American/
Caribbean region, accounting for more
than 60 percent of total demand for
paints and coatings.
• Guatemala, the Dominican Republic
and Cuba are the second, third and
fourth largest markets respectively, while
Belize, the Bahamas and Barbados are the
smallest.
• The market splits almost 70: 30 between decorative and industrial paints
and coatings.
• Most countries are net importers
of paints and coatings, with the key exceptions being Costa Rica, El Salvador,
Guatemala and Barbados.
• The competitive environment is quite
unique to the region, with the largest
players in Central America being Pintuco
of Colombia (which has recently acquired
Vastalux and Grupo Kativo, both based
in Costa Rica but with regional presence),
Comex of Mexico, Grupo Sur of Costa
and Lanco of Puerto Rico. Grupo Solid
of Guatemala is also a strong regional
player in Central America.
• The Caribbean market is more
fragmented, with main players including Berger (Asian Paints), Harris Paints
(Barbados), Brandram-Henderson
(Jamaica), Lanco (Puerto Rico), and
Penta, Sissons and Kaleidoscope of
Trinidad & Tobago.
• Cuba is strongly influenced by
Mexican and Spanish paint brands.
• Official population statistics give a
per capita paint consumption of 6. 6 kg
for the region as a whole, with the highest
levels seen in the Bahamas and Barbados.
Haiti has the lowest paint consumption
per person at only 0.6 kg.
• The highest growth rates over the
medium term are expected in Panama,
where investment in expansion of the
Panama Canal is aimed at allowing ac-
cess to larger vessels. With canal traffic in
the realm of 15,000 vessels per year or
approximately 4 percent of global trade,
Panama already possesses the largest trade
zone in the Western Hemisphere, at Colón
There are several key drivers behind the
expected future growth in the Central
American/Caribbean market:
• Reconstruction after the Haitian
earthquake of 2010. Already the poorest
country in the Western Hemisphere with
80 percent of the population living under
the poverty line and 54 percent in abject
poverty, the earthquake inflicted $7.8 bil-
lion of damage and caused the country’s
GDP to contract by 5. 4 percent in 2010.
Following the earthquake, Haiti received
$4.59 billion in international pledges
for reconstruction, which has proceeded
slowly thus far.
• Haiti’s new U.S.-funded industrial
park at Caracol has already attracted
Sherwin-Williams licensee Peintures
