South America Paints and Coatings Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.23 Billion |
| Market Size (2029) | USD 8.04 Billion |
| CAGR (2024 - 2029) | 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Paints and Coatings Market Analysis
The South America Paints And Coatings Market size is estimated at USD 6.23 billion in 2024, and is expected to reach USD 8.04 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the South American paints and coatings industry. Following the initial impact, the industry has experienced a decline in demand due to the shutdown of numerous factories and construction sites. Consequently, paint and coating production declined and disrupted the supply chain. Currently, the market has recovered from the pandemic. The market reached pre-pandemic levels in 2022 and is expected to grow at a moderate pace in the coming years.
- Major factors driving the market studied are the growing construction industry in the region and the increasing demand from the automotive sector.
- It is anticipated that stringent regulations on using VOC-free materials are expected to hinder market growth.
- The increasing demand for bio-based paints and coatings and the growing presence of the aerospace sector in the region are expected to provide growth opportunities in the market.
- The architectural sector dominated the end-user segment of the market in South America.
South America Paints and Coatings Market Trends
Architectural Paints and Coatings to Dominate the Market
- Architectural paints and coatings are by far the largest segment in the paints and coatings industry. Architectural coatings are meant to protect and decorate surface features. They are used to coat buildings and homes. Most are designated for specific uses, such as roof coatings, wall paints, or deck finishes. No matter its use, each architectural coating must provide certain decorative, durable, and protective functions.
- Architectural coatings are used in applications for commercial purposes, such as office buildings, warehouses, retail convenience stores, shopping malls, and residential buildings. Such coatings can be applied on outer surfaces and inner surfaces and include sealers or specialty products.
- Brazil is one of the largest countries in the South that has seen a rise in investments for various construction projects in recent times.
- In August 2023, Under the Novo Programa de Aceleracao do Crescimento (Novo PAC), the government planned to invest USD 345 billion between 2023 and 2026 in the construction of various infrastructure and buildings in the country.
- The region is witnessing a notable shift in its commercial construction landscape. Notable projects like the Paulinia Data Center and Porto Alegre Data Center I of Brazil, initiated in 2023, are among the largest in the region.
- Several South American nations are rolling out initiatives to make housing more affordable for their growing populations. For Instance, in February 2023, Brazil relaunched its nationwide federal housing program, targeting low-income individuals. In October 2023, the World Bank approved a USD 100 million financing package for Ecuador, specifically aimed at bolstering affordable and resilient housing.
- Such trends in the region are expected to contribute to the growth of architectural coatings during the forecast period.
Brazil to Dominate the Market
- Brazil is expected to dominate in the region during the forecast period due to the presence of established automotive and construction industries and investments in the industrial sector.
- As per OICA, the production of automobiles in the country amounted to 2.37 million units in 2022, registering a growth of around 5% compared to the previous year. As per OICA, the total sales of vehicles in the country amounted to 1.83 million units in Brazil in 2022, as compared to 1.86 million units in 2021, registering a decline of around 1.9%.
- Passenger cars, light commercial vehicles, and heavy commercial vehicles witnessed a decline in 2022 sales in the country owing to the growing cost of vehicles. However, bus and coach sales registered the highest growth in the automotive segment, accounting for 23.4% in 2022.
- However, Brazil has the largest electric vehicle market in South America. In mid-January, Brazil’s Constitution and Justice Commission (CCJ) approved a bill prohibiting the sale of new petrol and diesel-powered cars in the country as of January 2030. Around 700 thousand EVs are expected to be circulating in Brazil by 2030.
- Furthermore, The Brazilian construction industry remained weak in March 2023, with activity and employment falling for the fifth month. However, the most recent data by the National Confederation of Industry (CNI), with the support of the Brazilian Chamber of Construction Industry (CBIC), indicate that the fall in activity was not severe and broad. Furthermore, the reduction in activity from February to March 2023 is the mildest in the series of declines that began in November 2022.
- The reduction in activity is ascribed to high energy and construction material prices and soaring inflationary pressures, as are high-interest rates, decreasing levels of demand, and excessive household debt. In March 2023, the building activity index was 49.5, marking the fifth consecutive month with a score less than 50. This was preceded by February scores of 47.6 and January 2023 scores of 45.9.
- The Brazilian furniture industry has been growing steadily over the past three years, and the demand for newly designed furniture has been high recently.
- Brazil is the sixth largest producer of furniture globally, and many Brazilian furniture companies and designers have invested in innovative solutions that speed up production, shipping, and delivery. As a result of these efforts and more, furniture exports grew 50.9% from 2020 to 2021, with 35% of Brazil’s exports in the furniture industry specifically destined for American stores.
- According to the Brazilian Association of Furniture Manufacturers (ABIMÓVEL), Brazil’s furniture industry is formed by 19,000 companies, 80% of which are concentrated in the country’s South and Southeast regions, led by the state of São Paulo and followed by the conditions of Rio Grande do Sul, Minas Gerais, Paraná, and Santa Catarina.
- According to IEMI Inteligência de Mercado, the country produced more than 367 million furniture units in 2022 compared to 405 million units in 2021. However, the furniture production value in Brazil amounted to approximately 65 billion Brazilian reals in 2022 compared to 68.04 billion Brazilian reals in 2021.
- Hence, with the growth in the construction, infrastructure, and automotive sectors, the demand for paints and coatings is expected to witness growth over the coming years.
South America Paints and Coatings Industry Overview
The South American paints and coatings market is partially consolidated. The major companies (not in particular order) include PPG Industries, Inc., Akzo Nobel N.V., Jotun, Axalta Coating Systems, and The Sherwin William Company.
South America Paints and Coatings Market Leaders
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PPG Industries, Inc.
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Akzo Nobel N.V.
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Jotun
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Axalta Coating Systems
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The Sherwin William Company
*Disclaimer: Major Players sorted in no particular order
South America Paints and Coatings Market News
- January 2023: BASF expanded its automotive paints and coatings product portfolio by adding colors such as yellow, orange, green, and violet. In South America, white, silver, and beige automotive paints dominate the market.
- April 2022: Akzo Nobel N.V. strengthened its Latin American presence by acquiring Grupo Orbis, a Colombian paints and coatings firm. Grupo Orbis generates USD 379.37 million in Central America and South America. The sale contained Pintuco paints and coatings, Andercol and Poliquim (resins, emulsions, adhesives, and specialty chemicals), Mundial (paints and related product delivery services), and Centro de Servicios Mundial (shared services center). Pintuco offers a wide range of products in ten nations, with 75% decorative paints and 25% coatings, making income synergies.
South America Paints and Coatings Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Growing Construction Industry in the Region
- 4.1.2 Increasing Applications and Usage in the Automotive Sector
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Stringent Environmental Regulations Related to VOC-Emissions
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
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5.1 Resin Type
- 5.1.1 Acrylics
- 5.1.2 Epoxy
- 5.1.3 Alkyd
- 5.1.4 Polyester
- 5.1.5 Polyurethane
- 5.1.6 Other Resin Types (Polypropylene, Etc.)
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5.2 Technology
- 5.2.1 Water-borne
- 5.2.2 Solvent-borne
- 5.2.3 Powder Coating
- 5.2.4 UV-cured Coating
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5.3 End-User Industry
- 5.3.1 Architectural
- 5.3.2 Automotive
- 5.3.3 Wood
- 5.3.4 Industrial
- 5.3.5 Other End-user Industries
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5.4 Geography
- 5.4.1 Brazil
- 5.4.2 Argentina
- 5.4.3 Colombia
- 5.4.4 Chile
- 5.4.5 Peru
- 5.4.6 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Akzo Nobel N.V.
- 6.4.2 Axalta Coating Systems
- 6.4.3 BASF SE
- 6.4.4 Hempel
- 6.4.5 Jotun
- 6.4.6 Lanco Paints
- 6.4.7 PPG Industries, Inc.
- 6.4.8 Renner Herrmann S.A.
- 6.4.9 The Sherwin William Company
- 6.4.10 WEG Coatings
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Demand for Bio-based and Eco-friendly Paints and Coatings
- 7.2 Growing Opportunities in the Aerospace Sector
South America Paints and Coatings Industry Segmentation
Paints and coatings are thin layers of substance added to a surface to protect, beautify, or improve its usefulness. Paints are usually aqueous solutions, while coatings are often applied using solvent-based systems. In most cases, a brush, scraper, and sprinkler are used to apply them. The major raw materials utilized in producing paints and coatings are resins, pigments, solvents, and other materials.
The market is segmented by resin type, technology, end-user industry, and geography. By resin type, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, and other resin types (polypropylene, etc.). By technology, the market is segmented into water-borne, solvent-borne, powder, and UV-cured coating. By end-user industry, the market is segmented into architectural, automotive, wood, industrial, and other end-user industries. The report also covers the market size and forecasts for the market in 5 countries across the region.
For each segment, the market sizing and forecasts have been done on the basis of value (USD).
| Resin Type | Acrylics |
| Epoxy | |
| Alkyd | |
| Polyester | |
| Polyurethane | |
| Other Resin Types (Polypropylene, Etc.) | |
| Technology | Water-borne |
| Solvent-borne | |
| Powder Coating | |
| UV-cured Coating | |
| End-User Industry | Architectural |
| Automotive | |
| Wood | |
| Industrial | |
| Other End-user Industries | |
| Geography | Brazil |
| Argentina | |
| Colombia | |
| Chile | |
| Peru | |
| Rest of South America |
South America Paints and Coatings Market Research Faqs
How big is the South America Paints And Coatings Market?
The South America Paints And Coatings Market size is expected to reach USD 6.23 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 8.04 billion by 2029.
What is the current South America Paints And Coatings Market size?
In 2024, the South America Paints And Coatings Market size is expected to reach USD 6.23 billion.
Who are the key players in South America Paints And Coatings Market?
PPG Industries, Inc., Akzo Nobel N.V., Jotun, Axalta Coating Systems and The Sherwin William Company are the major companies operating in the South America Paints And Coatings Market.
What years does this South America Paints And Coatings Market cover, and what was the market size in 2023?
In 2023, the South America Paints And Coatings Market size was estimated at USD 5.92 billion. The report covers the South America Paints And Coatings Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Paints And Coatings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Paints and Coatings Industry Report
Statistics for the 2024 South America Paints and Coatings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Paints and Coatings analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
