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A Profile of the Argentinean Paint Industry

Published June 12, 2008
Information Research (IRL) has published a new report for the South American paint sector, A Profile of the Argentinean Paint Industry.
Paint demand in Argentina has been estimated at 265,000 tons in 2007 and with average growth of nearly seven percent per year overall, stands to add over 100,000 tons of additional demand by 2012 to make a market of almost 370,000 tons.
The prospects for the paint industry appear good for almost all segments, but the main driver is the construction sector, which continues to stimulate demand for decorative, protective, wood and general industrial coatings. Although demand from state construction projects tends to favor the more economical segments of the decorative sector, rising affordability for consumers is driving demand for quality paints, both in the medium and premium segments. Taking into account both the construction and refurbishment markets, the split of decorative paint use in Argentina is estimated to be 55% professional and 45% DIY.
The automotive industry forms the other main driver of demand for coatings in Argentina, both at the OEM stage in terms of the subsequent need for refinishes as the national car fleet grows in size. The automotive industry in Argentina is trailing in terms of finishing chemistry but offers double-digit growth prospects while it continues to serve a combination of domestic and export demand. The re-emergence of Fiat as a producer on Argentinean soil will help to boost consumption in the automotive OEM segment.
“Since the incredible recovery from economic collapse in the

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