Cape Town, South Africa - The South African building paint market is expanding due to many local and international influences. South Africa is a suitable base for expansion into Southern Africa, and further growth is anticipated as construction activity increases and expendable household incomes rise. As the market experiences high growth, competition is set to intensify even as heightened customer awareness about product safety triggers changes in production processes.

A new analysis from Frost & Sullivan, South African Building Paints Markets, finds that the market earned revenues of $630 million in 2006 and estimates this to reach $947 million in 2013.

“The 2010 football World Cup, coupled with rising economic growth and a general increase in building maintenance has led to surging demand for building paints,” notes Frost & Sullivan Research Analyst Cornelis Van der Waal.

Growth of 6-10 percent between 2007 and 2010 is expected in a market that has traditionally grown at the rate of the overall economy. However, this enhanced demand will taper off over the long term, and market entrants will have to move swiftly to capitalize on existing opportunities.

At present, many paint companies are unable to expand at the rate of current demand primarily due to legislative changes, growing customer awareness about health hazards, as well as a reduction in skills in the local market. In addition, competition is intensifying with the entry of small participants.

Increased price competitiveness, improved production processes as well as compliance with local and national health and safety standards are all issues that manufacturers have to consider when launching operations in South Africa.