Market Research South America Paints & Coatings Market Analysis

The South America paints & coatings market is estimated to register a growth rate of 3.09% during the
forecast period (2018 - 2023). Brazil is estimated to lead the market, due to the ongoing growth in the
automotive and architectural sectors in the country. Water-based coatings are expected to be the
fastest-growing type, by technology.
Emergence of Infrastructure Projects
Colombia, Brazil, and Peru have proposed national infrastructure plans to boost further investment. By
2021, Colombia plans to invest nearly USD 55 billion in infrastructural projects, while Brazil anticipates
over USD 900 billion in total infrastructure investment by 2020. The increase in infrastructure and
maintenance expenditure by the private and public sectors in Brazil, Peru, and Columbia are lending
momentum to the growth of the paints & coatings market in these countries. Brazil has recently
announced a USD 64 billion infrastructure-spending package that is intended to rejuvenate the slumping
Brazilian economy. More than a third of the new spending is planned for 2018, and the remainder in
2019. Nearly USD 28 billion is expected to be invested in rail and road infrastructure, USD 21 billion in
highways, USD 12 billion in ports, and nearly USD 3 billion in airports. The Peruvian government has
taken steps to secure infrastructural investments for projects through PPPs. These factors are expected
to increase the infrastructure output, which, in turn, is likely to increase the usage of paints & coatings.
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Water-borne Technology - The Fastest Growing Type by Technology
The VOCs released from solvent-borne coatings is the core reason for the manufacturers switching to
water-borne coatings. Also, other properties, like low odor, more durability, and more block resistance
make water-borne coatings more preferable. There are many regulations from several governments,
which support water-based coatings. These are usually used in several applications, which include
transportation, building & construction, and industrial applications. In recent times, there has been a
propensity to seek coatings with high usability, and water clean-up characteristics among the users.
Water-borne coatings meet the requirements and facilitate low viscosity as well, without the addition of
low-molecular weight monomers.
Brazil to Lead the Market in the South American Region
In the first three quarters of 2017, the Brazilian automotive industry had recorded a growth of 27% YoY,
reaching a total of 1,564,485 vehicles. Brazil holds more than 3.75% market share in the global beverage
can production, thus, boosting the demand for packaging coatings. Brazils energy production, as a share
of consumption, is forecasted to rise from 94% in 2015 to 112% by 2035. This would, in turn, boost the
demand for industrial coatings. With an increase in the number of government social housing programs,
including, Minha Casa, Minha Vada, the demand for paints and coatings in Brazil has also increased.
Construction of new hotels, coupled with the refurbishment of existing houses, is likely to boost the
demand for architectural coatings during the forecast period. All these factors are expected to rapidly
drive the market for paints & coatings in Brazil during the forecast period.