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Breaking News

Brazilian Paint Industry Set For Growth

September 14, 2009

LONDON - Paint and coatings demand in Brazil is estimated at 1,303,200 tons for 2008 and could grow to create a market of 1,651,000 tons by 2013. This marks an average annual growth rate in the region of 4-5 percent once Brazil has recovered from the effects of the global economic crisis. Almost all industry figures are optimistic about a return to market growth after a current period of uncertainty and possible contraction, according to the results of research published by IRL in its new Profile of the Brazilian Paint Industry, 2nd Edition.
 
The vast majority of the Brazilian paint market lies in the decorative sector, accounting for nearly 74 percent of total demand. The decorative paint market is almost entirely in the hands of professional applicators, whether purely professional, or in the case of home applications, in a buy-it-yourself market in which homeowners buy the paint and professionals apply it. Rising home ownership, rising living standards and easier credit availability have all been exerting positive influences over the Brazilian decorative paint market. The market has been further supported by investments from large American paint companies such as Sherwin‐Williams and PPG. Although the long-term trend has been towards rising use of good-quality decorative paints, the impact of the economic crisis has reversed this for the short term, placing the emphasis on cheaper paint use at the moment.
 
Construction and infrastructure are the key driving forces for the Brazilian coatings market as a whole, bringing rising demand for decorative, wood and protective coatings. The best growth rates are to be expected in the marine and protective segments, largely as a result of offshore exploration by Petrobras, an oil company headquartered in Brazil.
 
Large parts of Brazilian industry are now experiencing a time of greater safety, health and environmental control. Although there is an absence of formal legislation to drive the coatings market towards compliant technologies, it is beginning to happen anyway. There is already a much greater awareness of the need for environmentally friendly formulations within the Brazilian populace.
 
For additional information about the study, visit IRL's website at www.informationresearch.co.uk.

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