The South America paints & coatings market is estimated to register a growth rate of 3.09% during the forecast period (2018-2023). Brazil is estimated to lead the market, due to the ongoing growth in the automotive and architectural sectors in the country. Water-based coatings are expected to be the fastest-growing type, by technology.
Colombia, Brazil, and Peru have proposed national infrastructure plans to boost further investment. By 2021, Colombia plans to invest nearly USD 55 billion in infrastructural projects, while Brazil anticipates over USD 900 billion in total infrastructure investment by 2020. The increase in infrastructure and maintenance expenditure by the private and public sectors in Brazil, Peru, and Columbia are lending momentum to the growth of the paints & coatings market in these countries. Brazil has recently announced a USD 64 billion infrastructure-spending package that is intended to rejuvenate the slumping Brazilian economy. More than a third of the new spending is planned for 2018, and the remainder in 2019. Nearly USD 28 billion is expected to be invested in rail and road infrastructure, USD 21 billion in highways, USD 12 billion in ports, and nearly USD 3 billion in airports. The Peruvian government has taken steps to secure infrastructural investments for projects through PPPs. These factors are expected to increase the infrastructure output, which, in turn, is likely to increase the usage of paints & coatings.
The VOCs released from solvent-borne coatings is the core reason for the manufacturers switching to water-borne coatings. Also, other properties, like low odor, more durability, and more block resistance make water-borne coatings more preferable. There are many regulations from several governments, which support water-based coatings. These are usually used in several applications, which include transportation, building & construction, and industrial applications. In recent times, there has been a propensity to seek coatings with high usability, and water clean-up characteristics among the users. Water-borne coatings meet the requirements and facilitate low viscosity as well, without the addition of low-molecular weight monomers.
In the first three quarters of 2017, the Brazilian automotive industry had recorded a growth of 27% YoY, reaching a total of 1,564,485 vehicles. Brazil holds more than 3.75% market share in the global beverage can production, thus, boosting the demand for packaging coatings. Brazil’s energy production, as a share of consumption, is forecasted to rise from 94% in 2015 to 112% by 2035. This would, in turn, boost the demand for industrial coatings. With an increase in the number of government social housing programs, including, “Minha Casa, Minha Vada”, the demand for paints and coatings in Brazil has also increased. Construction of new hotels, coupled with the refurbishment of existing houses, is likely to boost the demand for architectural coatings during the forecast period. All these factors are expected to rapidly drive the market for paints & coatings in Brazil during the forecast period.
Major Players: AkzoNobel, Axalta, Hempel A/S, BASF SE, and The Sherwin Williams Company, among others.
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