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Real Estate Sector Presents Lucrative Opportunities for Egyptian Paint and Coating Manufacturers Finds Frost & Sullivan - Strong demand for decorative paints from construction sector to fuel local and foreign investments in future
Real Estate Sector Presents Lucrative Opportunities for Egyptian Paint and Coating Manufacturers Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Dubai, UAE, United Arab Emirates, 2014/05/20 - Strong demand for decorative paints from construction sector to fuel local and foreign investments in future.

   
 
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The increasing demand for affordable housing, robust infrastructure, and other public amenities among the younger generation is fuelling the market for paints and coatings in Egypt. Nearly 65 per cent of Egypt's population is in the 15 to 59 age bracket. This young demographic is driving the demand for housing. Furthermore, the growing trend towards nuclear families is fuelling real estate development, in turn boosting the prospects of paint and coating manufacturers in the country. Manufacturers should roll out optimally-priced products that are high on performance to fully exploit these developments.

New analysis from Frost & Sullivan, Analysis of the Egyptian Paints and Coatings Market, finds that the market earned revenues of LE 3.93 Billion in 2013 and estimates this to reach LE 4.90 Billion in 2018 at a compound annual growth rate of 4.5 per cent. The study covers decorative paints as well as automotive, marine, wood and industrial protective coatings.

"Over the next few years, the Government-subsidised LE 120 Billion project which aims at constructing one million residential units in 14 cities and other governorates across Egypt will drive the uptake of paints and coatings in the country," said the Frost & Sullivan Chemicals & Materials Research Analyst. "The resumption of several other private and Government-funded projects will also aid market development."

However, abating tourism and the fall in foreign investments in the Egyptian economy due to continual violent political clashes between the Government and the opposition are lowering market potential. Devaluation of the national currency is also holding back the market as more than 55 per cent of raw materials used by this industry are imported.

Despite the negative short-term outlook, the market holds strong potential. Egypt is the largest manufacturer and consumer of paints and coatings in the North African region. In addition to the strong demand for decorative paints anticipated from the residential construction sector, local and foreign investment is expected to regain momentum in the coming years.

"As the economy recovers, market participants will shift their focus from traditional paints and coatings towards green products," noted the Analyst. "The industrial paints and coatings segment too will show exponential growth from 2016 onwards, with demand being driven by the newly planned infrastructure development activities as well as demand from projects that are currently stalled."

If you are interested in more information on this study, please send an email to Tanu Chopra/ Paroma Bhattacharya, Corporate Communications, at tanu.chopra[.]frost.com / paromab[.]frost.com

Analysis of the Egyptian Paints and Coatings Market is part of the Chemicals & Materials (chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Advanced Aerospace Coatings Market, Indian Automotive Coatings Market, Protective and Marine Coatings Market and the Resins Markets, and Fluoropolymer Powder Coatings Market in North America. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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Analysis of the Egyptian Paints and Coatings Market / P57B-39

Contact: Nimisha Iyer - Corporate Communications Middle East, North Africa and South Asia
P: +91.22.6607 2007 / F: +91.22.2832 4713 - E: niyer[.]frost.com.

 
 
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Real Estate Sector Presents Lucrative Opportunities for Egyptian Paint and Coating Manufacturers Finds Frost & Sullivan

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