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Revenues Increasing in the Decorative Paints and Coatings Market Finds Frost & Sullivan - The decorative segment represents high potential within the paints and coatings market in Brazil
Revenues Increasing in the Decorative Paints and Coatings Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - São Paulo, Brazil, 2011/03/11 - The decorative segment represents high potential within the paints and coatings market in Brazil.

   
 
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The decorative paints and coatings market was worth $2,077.3 million in 2010. With a compound annual growth rate of 5.8%, this is likely to increase to $3,262.6 million by 2017. Almost 100% of local consumption is produced locally, while the exports contribute to approximately 5% of the total revenues, and are concentrated on big multinational companies.

The segment corresponds for 63.8% in terms of revenue of the total paints and coatings market in 2010. The industrial segment held the second-largest position, with 21.4%, followed by the refinish and automotive sectors, with 14.8% all together. In 2009, the decorative segment was the least affected by the economic crisis, with a revenue loss of 2.4%, whereas the total market lost 5%.

The decorative paints and coatings market is highly fragmented, with the top five participants representing about 80% of the market, and the 10 biggest players, 90% of the market. The market is primarily driven by the Construction and Do-It-Yourself (retail consumers) industries. "Government's major investments in social housing and infrastructure, and taxes reduction for the construction industry drove the market growth in 2009 and 2010", says Caio Carvalho, Frost & Sullivan Research Analyst, "preventing it from witnessing a major revenue slump as the industry shrank 2.4%".

The insufficient local raw material supply, which can meet only approximately 40% of the total industry's needs, is a major market restraint. Investments in this field may raise revenues, profit, and margin. In Brazil, the per capita consumption of paints is about 5 liters, whereas it is 15 liters per capita in the United States and more than 20 liters per capita in other developed countries. This low paint consumption is a challenge to the market participants, as there is a cultural barrier and paint is not regarded as a necessary good.

If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Decorative Paints and Coatings Market in Brazil / N8EA-39

 
 
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Revenues Increasing in the Decorative Paints and Coatings Market Finds Frost & Sullivan

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