Growing Popularity for Green Coating Resins Likely to Aid in the Market Growth of South Africa Paints and Coatings Market

The increasing construction sector is anticipated to boost the South Africa paints & coatings market during the forecast period 2020-2026. 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 also increased and hence South Africa paints & 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 & coatings market.

Decorative/Architectural has been the primary market for South Africa paints & 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 as many architectural paints, both interior and exterior, now combine paint and primer in one product, allowing for a paint job to be completed in fewer coats, resulting in improved performance and environmental benefits. These mixtures are intended to create a high-quality application that is more durable and long-lasting, eliminating the need for repainting or multiple applications and when it comes to interior walls of the residential and commercial buildings paints and coatings is considered one of the most important aspects. Furthermore, in South Africa the rising modern paint technology such as latex paints and coatings in the interior walls to withstand dirt, moisture, and daily wear and tear, has also raised the growth of the market.

The modern mixing system complete the missing spectrum of color shades in the ready-made color mixtures. The complete range of the system comprises several thousand color shades. These decorative coatings are easy to maintain and are highly resistant to vast environmental conditions. Therefore, these are tremendously used in applications for residential and non-residential buildings, such as flooring, wall cladding, metal finishing applications, wall panels and many more. They are predominantly used for renovating kitchen and bathroom surfaces. Hence, with the increase in construction activities across the South Africa the demand for decorative coatings will be foreseen to grow enormously. The Government of South Africa, has committed R100 billion ($6.11 billion) to the infrastructure fund, including R10 billion ($0.61 billion) over the next three years according to National Treasury Department of South Africa. This includes new funding, new guarantees and repackaging of existing projects. The fund focuses on blended-finance projects, most of which will be funded primarily by the private sector.

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 & coatings. 

Major players in the South Africa paints & 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. In April 2018, Axalta, a leading global supplier of liquid and powder coatings, has opened of its new South African central office in Midrand, Gauteng, South Africa, which is dedicated to automotive refinish coatings technology.

The rapid widespread of coronavirus 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 that are 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.