South Africa: Coatings sales continue to rise – but industry fears impact of weakness in overall economy

Nicola Jenvey reports from Durban on the SA coatings market and the factors affecting it

Sales within the South African home paint market are expected to reach US$416.6M (South African RandZAR5.96bn) in the year to December 2019, up from US$358M (ZAR5.12bn) in the previous year, but industry association officials fear this growth could be hit by South Africa’s weak general economy in the coming year. The health of this coatings segment is important, given that statistics provided to Polymers Paint Colour Journal (PPCJ) by London-based market research provider Euromonitor International indicate that decorative paints sales have been growing fast in recent years – to US$375M (ZAR5.36bn) from US$354.1M (ZAR5.06bn) in 2018, while sales of home lacquers and varnishes remained relatively stable at US$41.6M (ZAR594.99M) against USD41.4M (or ZAR592.13M) in the same period one year earlier. “Consumers expect and demand products that have a strong brand heritage based on trust, quality, durability and reliability. Private label offerings are no match for these brands,” Euromonitor stated. However, the anticipated yr-on-yr growth for 2019 of 5.3% was significantly lower than the 2017/2018 yr-on-yr growth of 10.5%, as economic hardships and diminished income levels have forced consumers to continue seeking out DIY solutions.

Read the full report here: South Africa 2020