South Africa Paints and Coatings Overview
South Africa Paints and Coatings Market size is forecast to reach $2.1 billion by 2026, after growing at a CAGR of 5.6% during the forecast 2021-2026. With rise in building & construction sector, the consumption of paints & coatings is increasing and South Africa Paints and Coatings market is witnessing an increase in demand. Paint and coatings manufacturers are enhancing their formulations owing to the innovative and more sustainable solutions. Also, the highly demanding paints and coatings formulations used for architectural coatings, or industrial coatings have raised the market for South Africa Paints and Coatings market. Environmental Issues and regulations associated with paints and coatings can create hurdles for the paints & coatings industry. Hence South Africa's paint industry has continued to implement production methods in order to comply with environmental and other legislation, including a recent effort to reduce lead content in paint.
COVID Impact
COVID-19 has been a big disruptor. This influence has been distinct and far reaching across industries. In the midst of fear of deteriorating economic circumstances, countries and businesses largely dependent on outsourcing are attempting to regulate imports of South Africa paints and coatings, so that they can use their own resources. South Africa's manufacturing sector, especially paint and coatings companies, is in a state of flux, with many of them shutting down or going out of business. The novel coronavirus pandemic has put a housing development program in South Africa in jeopardy. As a result, several paint and coatings firms who may have bid or intended to bid for a share of the project's supply contracts have had their hopes diminished. Hence this pandemic has declined the paints & coatings market in South Africa.
Report Coverage
The report: “South Africa Paints and Coatings Market - Forecast (2021-2026)” covers an in-depth analysis of the following segments of the South Africa Paints and Coatings Market.
By Formulations - High Solid Coatings, Waterborne Coatings, Solvent-Borne Coatings, Powder Coatings, Others.
By Component - One Component, Two Component.
By Resin - Alkyd, Epoxy, Acrylic, Polyurethane, Polyester and Others.
By Application - Decorative/Architectural (By Application, (Floor, Roof, Wall (Interior and Exterior) and Others), By Construction Type (Residential Construction (New Construction and Reconstruction), Non-Residential Construction (Commercial and Infrastructure)), Wood Coatings, Automotive OEM (Passenger Cars, Light Commercial Vehicles, Heavy Trucks, Buses & Coaches), Aerospace (Commercial Aviation, Passenger Aviation, Military, Others), Marine (Cargo Ships, Passenger Ships, Boats & Yatchs and Others), Packaging (Cap & Closure, Cans, Drum & Pail, Paper & Paperboard and Others), Auto Refinish/Aftermarket, Textile, Electrical & Electronics, Medical, Oil & Gas and Others.
Key Takeaways
- Decorative/Architecture constructions has dominated the South Africa Paints and Coatings market owing to its wide applications in roofs, floors, walls, facades, wood trims, doors and other applications.
- The growing popularity for green coating resins, is likely to aid in the market growth of South Africa Paints and Coatings market.
- Rising growth in urban housing with growing spending on repair and maintenance of the infrastructure, will increase the market demand for South Africa Paints and Coatings in the near future.
- Fluctuation in prices of raw material can will create hurdles for the South Africa Paints and Coatings market during the forecast period.
South Africa Paints and Coatings Market Segment Analysis - By Formulations
Water-Borne segment held the largest share in the South Africa Paints and Coatings market in the year 2020 and is expected to grow at a CAGR of 6.6% during the forecast period. The waterborne coating generally uses water as a solvent to disperse the resin which is added to create the coating. Its composition varies and may include as much as 80% water with small amounts of other solvents such as glycol ethers. High water content makes water-borne coatings both environment-friendly and easy to apply. Waterborne coatings offer a wide range of applications, including automotive, concrete, furniture, plastic, wood, and are compatible with both conventional and electrostatic application equipment. Containers and paint guns used during the application of water-borne coatings can be easily cleaned with water or water-based cleaners, without the need for cleaners such as acetone, methyl acetate, or paint thinners.
South Africa Paints and Coatings Market Segment Analysis - By Component
Two component segment held the major market for South Africa Paints and Coatings market in the year 2020 and is expected to grow at a CAGR of 5.4% during the forecast period. Two-component convertible coatings include epoxies, polyurethanes, and others. These coatings are also referred to as 2K coatings that require the intermixing of resin with a hardener. This causes a chemical reaction that chemically bonds the two components together, resulting in a paint film that is superior to one-component paints in terms of chemical, fading, and abrasion resistance. These paints consist of base paint and a hardener and are vigorously combined in the appropriate ratio and then rapidly applied. However, these paints have a high solid content. Hence, they are also called high solid paints. It majorly used as a final layer for the protective coating of metallic surfaces such as steel, stainless steel, new or aged galvanized steel, aluminium, copper, brass, bronze. Moreover, used on concrete surfaces including floors and masonry, in industrial and chemically aggressive environments, naval, railway, food industry, and more. Hence with the increasing usage of two-component paints, the paints & coatings market is expected to grow.
South Africa Paints and Coatings Market Segment Analysis - By Resin
Acrylic segment has dominated the market for South Africa Paints and Coatings in the year 2020 and is expected to grow at a CAGR of 5.1% during the forecast period. Acrylic surface coatings are used in various paints & coatings market categories including architectural, protective, decorative and more. It acts as a physical barrier layer to isolate the surface of metal from corrosive environment. Moreover, acrylic surface coatings are preferred for their inertness, industrial as well as color retention property when exposed to outdoor conditions. Waterborne acrylic resins are used in a wide range of industrial preservation and commercial architectural coatings. Acrylics have excellent resistance to UV light, toughness, resistant to grain cracking over wood and is also hydrolytically stable. Hence owing to its property the acrylic demand in paint & coatings have grown.
South Africa Paints and Coatings Market Segment Analysis - By Application
Decorative/Architectural has been the primary market for South Africa Paints and Coatings market in the year 2020 and is expected to grow at a CAGR of 5.6% during the forecast period. Decorative/architectural are the major application of paints and coatings, which accounts for the major share in the South Africa paints and coatings market in terms of both value and volume. Furthermore, nowadays coatings with lower VOC is no longer a specialty product offering, it is a must have option. The decorative/architectural paints & coatings are used in roofs, floors, walls, facades, wood trims, doors and other applications. However, rising installment projects of roofing technology in the South African cities is anticipated to drive the demand for paints and coatings in the forecast period. For instance, as part of the Cool Roofs and Insulation Partnership, the South African National Energy Development Institute (SANEDI) has planned to install 26,000 m2 of cool roofing technology in the City of Cape Town as per the news report of November 2020.
South Africa Paints and Coatings Market Drivers
Green coating resins for eco-friendly coating systems
Industry of paint and coatings focuses on sustainability and being "green" there is also a lot of consensus defining the green coating. In addition, the coating industry tends to be ahead of the standards of the consumer when considering the environmental effects of both processes and products. Cost and performance continue to be key drivers of purchasing decisions, and green products are only considered if they provide added value commensurate with any cost premium. Green, however, is no longer a movement but a well-established way of doing business for the industry, and there has been a major change from concentrating exclusively on air-quality to an approach that incorporates all aspects of processes and goods that lead to sustainability. Thus, this tends to drive the South Africa Paints and Coatings Market in the upcoming years.
Rising growth in urban housing with growing spending on repair and maintenance of the infrastructure to exponentially growing population
In South Africa, 75.1% of the medium-term estimate is spent on economic infrastructure, primarily by state-owned enterprises. These funds will be used to increase power generation capability, strengthen sanitation and water systems, and upgrade and extend the transportation network. The infrastructure for social care accounts for 20.9 percent of the total, with health and education accounting for 4.6 and 7.2 percent, respectively. The public sector is forecast to invest R257 billion ($17.79 billion) on infrastructure in 2019/20, up 19% from the previous year. This is largely due to higher planned investment by state-owned enterprises, which are expected to restart or launch infrastructure projects that were previously postponed. Therefore, this tends to drive the market growth for South Africa Paints and Coatings.
South Africa Paints and Coatings Market Challenges
Fluctuation in prices of raw material can impact the growth
The prices of paints largely depend on the cost of raw material. About 30% of the raw materials of paints and coatings are petroleum-based derivatives. Thus, any rise in the price of crude oil would lead to a shift in the price of raw materials. Over the last few years, there have been a lot of increases in crude oil prices that have impacted the margins of the paint firms. Pressure rose further as a result of the recession and thereafter of the fall in demand. The main raw materials are titanium dioxide, phthalic anhydride and canarithrithol. They reflect about 50 percent of the overall cost. Thus, any fluctuation in petrol prices can decline the market growth for South Africa Paints and Coatings.
South Africa Paints and Coatings Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the South Africa Paints and Coatings Market. Major players in the South Africa Paints and Coatings Market are Sherwin Williams Company, PPG Industries, Inc, Akzo Nobel N.V., Axalta Coatings Systems, Kansai Paint Co. Ltd., (KANSAI PLASCON AFRICA LTD.,), Ferro SA, Dekro Paints Group, The Medal Paint, Africa Paints, Duram Smart Paints, among others.
Methodology
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