The Paint Industry in South Africa 2023

Challenges

Delays at ports. Fluctuation in prices of raw material can affect growth. High production costs. Increasing costs due to loadshedding. Lack of disposable income affects consumer spending. Rampant power outages. Shortage of skills. The industry is exposed to external macroeconomic factors.

Introduction

The paint industry is dominated by internationally-owned companies. The two largest players are Amsterdam-based Dulux manufacturer AkzoNobel, and Japanese company Kansai Plascon Africa, which manufactures Plascon. Decorative/architectural paints, which are used for decorative purposes on roofs, floors, walls, facades and doors, account for almost 80% of coatings sales, and industrial/performance and automotive coatings the balance. Demand for decorative/architectural coatings has slowed in line with a slowdown in DIY projects. Manufacturers have been severely affected by power cuts. The industry imports raw materials such as titanium dioxide and other pigments that are not manufactured locally.

Opportunities

Strong automotive sales offer growth opportunities for manufacturers of original equipment coatings. Sustainable and environmentally-friendly paints and coatings provide an opportunity for manufacturers to differentiate and tap into new markets.

Outlook

Demand in the decorative/architectural paint and coatings segment is expected to be weak as consumer spending comes under pressure. Manufacturers are likely to continue to experience challenges such as loadshedding, high raw material prices due to a volatile rand and increasing operating costs. Pressure on margins is likely to result in higher paint prices. Manufacturers in the automotive coatings sector can expect strong growth due to increased vehicle production.

Report Coverage

This report on the paint industry in South Africa includes information on architectural and decorative paints and coatings as well as industrial coatings used in the mining, agricultural and automotive sectors. There is information on the state of the sector, notable players, trade and influencing factors and profiles of 27 companies. These include major players such as Kansai Plascon, Dulux, Ferro and Prominent Paints, industrial coatings companies such as BASF and retailers including Jack’s Paint and Hardware .

Trends

Decline in the decorative/architectural sector. Growing demand for green products, which release almost no volatile organic compounds during manufacture. Strong demand for automotive coatings.