The paints & coatings are the materials in liquid form that are sprayed or applied to a thin layer substrate. These materials are obtained from synthetic or natural sources that provide color or protection to the surface. The paints and coatings are applied to a surface creating a solid film over the surface, which protects the surface from wear, tear and corrosion and provides a better look. The paints & coatings market in Chile and Peru valued USD 213.13 million in 2019 and it is expected to grow at a CAGR of 3.64% to reach USD YY million by 2027. The market is driven by growing demand from end-use industries such as decorative, automotive, building and construction, etc. to provide a better visual appeal, texture and to increase shelf-life along with protection from external damages. The market is dominated by the availability of innovative formulation technologies, including anticorrosive protection, low-VOC content coats, and nano-coatings. The acrylic segment accounts for the highest market share of about 30.73% in 2019 due to the higher usage of acrylic paints and coatings are used in various industries, including the automobile, medical devices, and construction industries, because of their chemical characteristics and unique esthetic properties. Acrylic resins are the most commonly used binder in paint and coatings systems. These are mainly used for decorative paints and include all acrylics, both pure and modified, such as styrene-acrylics and vinyl-acrylics. Several companies are developing nano paints and coatings. The introduction of nanotechnology has led to the development of products that can conduct electricity or exhibit UV protective or self-healing properties
Market Dynamics
Drivers
- The growing construction industry is driving the market growth
- Manufacturers focus on niche marketing and elevate quality product lines in Chile
Restraints
- Rise in the prices of raw materials is expected to hamper the growth of the market
Manufacturers Focus On Niche Marketing And Elevate Quality Product Lines In Chile
The Chilean paint & coatings market growth is at a steady pace as manufacturers rationalize production, focus on niche marketing and elevate quality product lines. Architectural paint sales represent about 60 percent of total sales in Chile, while industrial sales represent about 40 percent. Social projects remain a key form of marketing for Chilean paint companies. Following the February earthquake in 2010, for instance, Pinturas Sipa rolled out a program to help hardware stores replace damaged paint cans and other materials, with offers to help upgrade sales aids. The major multinational paints and coatings companies have a strong presence in Chile and continue to invest in the market, via organic growth and also through strategic acquisitions. Growing automotive industry in the country is also driving the market. For instance, Car sales in Chile had a very strong year in 2017. The market rose 18.2 percent over 2016, marking its best year of growth since 2002. Nearly 362,000 new cars and trucks were sold. The signing of the FTA has had a very positive impact on U.S. parts sales in Chile. United States customs data indicated total automotive parts exports to be $341 million during 2017, this will propel the demand for paints and coatings in the automotive sector.
Peru paints & coatings market
Peru paints & coatings market is valued at US$ 307.09 Million in 2019 and is estimated to grow at a CAGR of 3.22% over the forecast period to reach a US$ YY Million by 2027. Architectural coatings holds the majority of the market in Peru paints and coatings market in 2019 followed by industrial coatings. Architectural coatings hold around 68% of the total market in 2019. Peru architectural paints and coatings market was valued at USD 209.63 million in 2019 and is expected to reach USD 253.72 million by 2027 with a CAGR of 3.34% during the forecast period 2020 to 2027. Construction industry is one of the major consumers of paints and coatings and is expected to hold the majority of market share over the forecast period owing to rising construction activities in the country. In 2019, Peru launched a National Infrastructure Plan (PNIC), highlighting a US$ 104 billion need over the next 20 years to bridge Peru’s long-term infrastructure gap. However, the rapid spread of COVID-19 in the Latin America has impacted severely in almost all countries in this region especially Brazil, Argentina, Colombia, and Peru. As of April, 2021, Peru is the fourth largest in the list of total number of COVID-19 cases. The country has registered 1,745,655 new COVID-19 cases and around 59,012 deaths occurred in the country. The Peru construction industry is expected to have a year-on-year growth forecast of 5.5% in 2019, but due to COVID-19 pandemic the growth was limited to 1.5% only. Moreover, the stringent actions taken by the government of Peru to contain the spread of COVID-19 has adversely affected the paints and coatings market in the country. According to a Global Data report, Peru’s construction industry is expected to contract by 4% in 2020. According to recent study, construction output forecast for Latin America to -11.4% from -6.8% previously, mostly due to the slower than expected rebound in construction activity in the second half of the year as the coronavirus continues to spread across the region and construction companies are still struggling to revive their operations. However, Peru’s construction output is expected to contract the most this year at more than -20%, followed by Argentina and Colombia which will slowdown the market for the paints and coatings market in the country.
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