A Profile of the South African Paint Industry

Citation

(2006), "A Profile of the South African Paint Industry", Anti-Corrosion Methods and Materials, Vol. 53 No. 4. https://doi.org/10.1108/acmm.2006.12853dac.008

A Profile of the South African Paint Industry

A Profile of the South African Paint Industry

Keywords: Paints, South Africa

Information Research (IRL) is pleased to announce the availability of a new market study for an important emerging economy in A Profile of the South African Paint Industry.

Paint and coatings demand in South Africa is estimated at 263,000 tonnes in 2005, and with average annual growth of 8 per cent pa across the entire market will reach almost 388,000 tonnes by 2010. The South African paint industry bears many resemblances to the individual paint industries of Western Europe and takes many leads from the factors which shape the Western European paint market. The top tier of the industry is occupied by two companies – Barloworld Coatings and AECI – with their own outstanding technical strengths, which are further complemented by joint ventures and licensing agreements which they hold with major paintmakers from Germany, USA and Japan.

The decorative coatings market in South Africa is estimated at 194,000 tonnes in 2005. The market is characterised by clear three-way splits in terms of purchasing and application behaviour and also with regard to the quality of paint consumed, as shown in the Figure 1.

Figure 1 South African decorative paint market characteristics, 2005 (per cent)

Strong growth is expected for the decorative coatings market, partly out of tradition because the majority of properties are cement rendered, but principally due to strong construction sector activity and the rise of black middle-class spending power.

Growth rates in the range of 8-12 per cent pa in the decorative coatings market are fairly well matched with those of 9-11 per cent pa for the protective sector, which is slightly higher than the average for the industrial coatings market. The protective coatings market is likely to benefit most from rising steel manufacture for South African and other projects, from the construction of sports stadia, which will require fireproofing, and from transportation infrastructure, particularly that of the railway sector. Other parts of the industrial coatings market that can expect good growth include wooden furniture finishes and automotive coatings.

There is currently no legislation which works against solvent-based paints or lead-containing paints, although the latter may see legislation become effective in 2007-2008. Any moves to make coatings compliant appear to be voluntary on the part of industry or else arise in the industrial coatings segment through stringent global OEM customer specifications.

Terry Knowles, Business Manager at IRL and author of the report said, “South Africa is positioned very well for paint market growth and rising production levels in the future. Paint demand in South Africa will continue to grow as a result of high government and industry investment on the one hand and higher disposable incomes on the other. Furthermore, as South Africa enjoys renewed prominence on the world stage in the run-up to the World Cup in 2010, neighbouring economies are expected to benefit from a tourism and accommodation overspill which will enhance coatings demand and investment in those countries too. It all bodes well for the South African paint industry”.

A profile of the South African Paint Industry, has the following contents:

• Introduction.

• Executive summary.

• Background.

• The South African paint industry.

• South African paint production, trade and consumption.

• South African paint market data (general overview, decorative coatings, general industrial coatings, industrial wood coatings, protective coatings, automotive OEM coatings, automotive refinishes, powder coatings and coil coatings).

• End-user industry statistics and indicators (construction, automotive, tourism and steel).

• Market Forecast

• Industry associations.

• Directory of South African paintmakers.

A Profile of the South African Paint Industry (77 pp and 62 tables), which includes a completely-revised 15-page directory of paint companies in Russia, is now available from IRL priced e2,000 for a single hard copy edition.

Sections of the report, priced individually, will soon be available to purchase online at our web site: www.informationresearch.co.uk