Caraibes to set up a new production
facility.
• Many of the countries in this region have strong agro-industrial sectors
e.g. sugar, coffee, tobacco, shrimp. These
industries will continue to demnd general
maintenance coatings, albeit on a relatively small scale.
• Tourism is an important contributor to many economies, particularly in
the Caribbean. The demand for new
hotels and improved infrastructure will
continue to boost consumption of architectural and protective coatings.
• Sweeping economic reforms are
highly anticipated in Cuba in the wake
of leadership changes. These reforms
include opening up the private property market to allow buying and selling, and elimination of the restrictive
monthly ration book. In 2011 President
Raul Castro announced that it would
take at least five years to update Cuba’s
economic model, including the removal of mass subsidies on basic goods.
On-going problems for the regional
paint industry include:
• Political instability.
• Illegal dumping of cheap paints and
coatings, particularly in Central America
e.g. Honduras.
• Highly competitive environment, particularly given recent acquisition activity – this will
squeeze the margins of the smaller manufacturers and may
force further M&A activity, or
even push out some players.
• Low levels of industrial development, which limits the market for industrial coatings.
• High prices for raw materials.
Indian Decorative Paint
Market to Grow by 15%
During FY 2012-2015,
Predicts RNCOS
India’s decorative paint market is growing
at a healthy rate over the past few years,
according to a report from RNCOS.
Demand from the real-estate sector has
placed the Indian paint industry on a
high growth trajectory. The thrust of
the Indian Government on building up
infrastructure also has helped the industry to grow economically.
According to RNCOS recent report,
“Indian Paint Industry Forecast to 2015,”
the decorative paint market in India is
anticipated to grow at a CAGR of more
than 15 percent during FY 2012-2015.
Disposable income plays a critical
role in the decorative paint market.
Thus, increase in people’s income will
help the industry to grow. Moreover,
the rural sector has a major share of the
decorative paints segment. Thus, any
benefit to the rural sector for improving the dispensable income is directly
co-related to the growth of the paint
industry. Besides, decorative paints
are marketing savvy products backed
by large advertisement campaigns and
dealership networks. Huge investments
required in setting up a vast marketing
and dealership network, to advertise
and develop a brand over a period of
time will also help the industry to reach
new heights.
The report, “Indian Paint Industry
Forecast to 2015,” provides a complete
understanding of the paint market of
India. It analyzes the market size of
the total paint industry and its segments in terms of types, raw material,
and product class. They also studied
how the government regulations are
impacting the industry. With a view to
understanding the industry’s competitive landscape, it provides profiling of
industry’s leading players Asian Paints,
Kansai Nerolac Paints, Berger Paints,
AkzoNobel and Shalimar Paints along
with their product portfolio and financials, which will help clients understand
the market situation and its progress in
the coming years.
Overall, the report contains the vital information that will help clients to
draw up their market strategies and assess opportunity areas in India’s paint
industry.
Study Finds Need to
Reduce Fuel Consumption
Drives Demand for Marine
Coatings
New analysis from Frost & Sullivan,
“Strategic Analysis of the Global Market
for Marine Coatings,” finds that
the market earned revenues
of $5,030.1 million in 2011
and estimates this to reach
$10,216.3 million in 2018. The research
covers anti-corrosive, anti-fouling and
foul-release coatings.
According to the study, the global marine coatings industry is poised to sail forward on the growing demand for reduced
fuel consumption in cargo and cruise
ships. Increasingly stringent environmental regulations are boosting the prospects
of high-value, eco-friendly coatings.
Innovation has been the only constant,
with all companies striving to offer eco-friendly products.
“The need to lower fuel consumption
is a strong market driver and antifouling
coatings applied to ships’ hulls offer one
way to combat emissions and reduce fuel
consumption,” said Frost and Sullivan
research director Leonidas Dokos. “Foul-
release technology, which also results in
substantial fuel savings, is particularly
useful for large cargo ships, which con-
sume a lot of fuel.”
Marine coatings manufacturers are
generally conservative in adopting new
practices. However, increasingly strin-
gent environmental legislation, paral-
leled by customer preference for more
eco-friendly products, is pushing inno-
vation in the market.
“Companies are investing in devel-
oping eco-friendly products such as
metal-free, anti-fouling coatings,” not-
ed Dokos. “Most major participants
now offer silicone- or fluororesin-
based foul-release products.”
While these are positive signs for
the market, it is not expected to be all
smooth sailing. Participants will have
to contend with two major challenges:
projected declines in shipbuilding pro-
duction and the consolidation of ship-
ping management companies.
Until the beginning of 2014, new ship
building activities are expected to fall.
This will lead to declining volume demands in the near-term. Consolidation of
the shipping management companies will
increase their buying power, while placing additional pressure on marine coatings prices. CW
