• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Coatings World Company Profile: Siltech Corp.

    Coatings World Interviews Axalta CEO Robert Bryant

    Resins Update

    Building a Sustainable Future

    Paint for Commercial Vehicles Goes Greener
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    VideoBite: Engineered Polymer Solutions

    Shepherd Color Unveils Bismuth Vanadate Yellow Pigment

    HMG Paints Reports Positive Feedback on Contract Matt Emulsion

    Hempel Protects O2 Tidal Energy Turbine

    PPG Extends Tender Offer Period for Tikkurila
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    HMG Paints Reports Positive Feedback on Contract Matt Emulsion

    Hempel Protects O2 Tidal Energy Turbine

    PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System

    HGTV Home by Sherwin-Williams Launches Ovation Plus

    Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers
    Additives
    Binders
    Pigments
    Solvents

    VideoBite: Engineered Polymer Solutions

    Shepherd Color Unveils Bismuth Vanadate Yellow Pigment

    BASF Increases Kaolin Product Portfolio Prices

    Sika Expands Production Capacity in Qatar

    Asahi Kasei Europe R&D Center Relocated
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Shepherd Color Company, The

    Keim Additec Surface USA LLC

    Pilot Chemical Company

    Clariant Additives

    Eagle Specialty Products
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    11th Asia Pacific Floor Fair and Guangzhou Paint & Coatings Fair

    Coatings for Africa
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Pilot Chemical Company

    Clariant Additives

    Active Minerals

    Eagle Specialty Products

    Keim Additec Surface USA LLC
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Africa Report

    Egypt’s Coatings Market on Recovery Path

    ...

    Egypt’s Coatings Market on Recovery Path
    Egypt’s Coatings Market on Recovery Path
    Related CONTENT
    • HMG Paints Reports Positive Feedback on Contract Matt Emulsion
    • Overview of Iranian Paint and Coatings Industry
    • Relief Funds Accelerate into Puerto Rico
    • Raw Material Availability, Price Increases May Be Biggest Issue for Coatings Industry in Europe
    • Coatings World Company Profile: Siltech Corp.
    Shem Oirere, Africa Correspondent02.13.17
    The growth prospects for Egypt’s paints and coatings market look promising in the short and medium term after the country steered itself out of the 2011 chaotic political revolution and managed to woo private sector investments in the real estate, industrial and general infrastructure segments.

    The promulgation of a new constitution and successful 2014 and 2015 presidential and parliamentary elections respectively has helped restore some degree of confidence in the country’s economy and the largest manufacturer and consumer of paints and coatings in North Africa.

    Despite the demand for paints and coatings having declined in 2011 and soon after because of what some analysts said was the estimated 7 percent decline in real estate investments to $4 billion, market experts say the industry is up and catching up fast.

    “Domestic demand for paints and coatings is expected to grow from $142 million in 2013 to $552 million in 2018 at the compound annual growth rate (CAGR) of 4.5 percent,” said Richard Weissenberg, business unit leader for chemicals, materials and food at Frost & Sullivan in an interview with Coatings World.

    He said Egypt’s growing population, now estimated at 93 million and growing at 2 million every year, and higher per capita income that is expected to be $2772 by the end of this year, are fuelling the expansion of the paints and coatings consuming sectors such as housing and other amenities.

    Some investors have already expressed interest in tapping into the increasing demand for housing. For example, in 2014 Egypt signed an agreement with United Arab Emirates-based contractor Arabtec to build one million homes across the country over a 10-year period at a cost of $40 billion.

    In addition, the government has approved a plan to build a new administrative city for Egypt over a seven-year period at a cost of $45 billion. The project will provide jobs to one million people and provide housing to at least five million others. These are examples of major projects that are expected to keep high the demand for paints and coatings in Egypt.

    Weissenberg said although there is no confirmation of the value of the paints and coatings market for 2016, the market was valued at $435 million in 2013, dominated by decorative paints that held 74 percent of the market share. Other segments were wood coatings 10 percent, industrial protective paints 9 percent, automotive coatings 4 percent and marine coatings 3 percent. (See chart 1)

    He said currently Egypt is the largest manufacture, consumer and exporter of decorative paints in North Africa. The decorative paints segment, Weissenberg said, has been influenced by the historical preferences of the Egyptians for things white and lighter.

    “Historically, the Egyptian paints industry has been favorable towards whites and lighter shades although in recent years there has been a swift towards bright,” said Weissenberg.

    The tinting segment of the decorative paints grew from $30 million in 2008 to $57 million in 2013 and the segment is “expected to continue strong growth in the coming years.”

    There has also been a new trend in the Egyptian coatings market is the steady transition from alkyd paints towards emulsion paints.

    “Alkyd paints were preferred by the applicators until 1990 due to their perceived protective strength and durability but with the emergence of acrylic emulsions, alkyds are losing their presence gradually,” he said.

    A review of the decorative paints markets show that the emulsion paints take up 51 percent of Egypt’s decorative paints market share while tinting and alkyd (synthetic) paints take up 18 percent and 31 percent respectively.

    A large share of raw materials for the making of paints and coatings, up to 55 percent according to some estimates, are imported mainly from Germany and South Korea although there is some local production for the materials such as linseed oil and solvents.
    The importation and utilization of these raw materials for the decorative paints is done by many companies in the market, which is currently dominated by PACHIN, Jotun, Sipes and KAPCI Coatings. These companies supply their paints through distribution network to institutional projects and to retailers.

    PACHIN has the largest share of Egypt’s decorative paints market according to 2013 statistics at 25.6 percent. Sipes and GLC had a 17.2 percent and 13.8 percent share respectively while SCIB & KAPCI coatings combined had 8.6 percent. Jotun and Mido Paints had 8.3 percent and 4.1 percent respectively while all other companies had a combined share of 22.4 percent. The other companies include A- Plus for Car Paints Factory, Alexandria Co. for Paints & Chemicals (Velvet Paints), Al-Haram Paints Factory, Al-Saad for Mixing Paints, Colorama for Paints & Modern Building Chemicals Co, Egypt Paints, Jordanian for Chemical Industries Co, Modern Chemical Industries Co, Modern Co. for Paints, Nile Co. for Paints & Coatings, Raghdan Paints Co and Technicolor Factory. (See chart 2)

    Products manufactured by these companies are supplied to distributors, who sometimes meet the demand by coloring centers and also project customers.

    “These distributors are further connected to sub-wholesalers that supply the products in a given area,” said Weissenberg.

    A recent emerging trend is where paints and coatings for bulk projects such as housing, tourism and government infrastructure initiatives are being handled by “paint manufacturers directly, while many real estate projects are handled by regional distributors.”
    However, the individual customers across the market are generally taken care of by retail stores or local paint shops.

    “These are multi-brand stores with small quantum of sale,” explained Weissenberg.

    “Only a few distributors and super stockists cover the market,” said Weissenberg, adding that the distributors “stock and distribute the products of two or three paint companies.”

    Tinting/Coloring Centers is also a key segment in Egypt’s decorative paints market. The centers are exclusive outlets owned by franchisees of paint companies and which give customers opportunity to choose and create their own shades on site before they are formulated in-store using a tinting machine.

    Although Egypt’s 2011 political turmoil is now history, the paints and coatings industry continue to face some challenges which have hampered the full exploitation of the country’s market potential.

    The World Bank says the Egyptian economy is still reeling from the low international (cash) reserves, a not-so-good investment climate, and the unfavorable external conditions such as the sluggish economic recovery in Europe and lower international oil prices which have eaten into the Egyptian remittances especially from the Gulf region.

    SCIB Paints regional head-Middle East and Egypt Manish Mehra said recently “the prospects in the medium term are not very attractive” for the paints and coatings industry in Egypt according to a report by MarcoPolis LLC, a Paris-based international online publishing company.

    “There has been a crisis in terms of availability of U.S. dollars to purchase raw materials and most of the raw materials are imported,” he said. It is estimated that up to 55 percent of raw materials needed by Egypt’s paints and coatings industry are imported.

    “All the companies have to import raw materials and in the last two years the availability of foreign currency has become an issue (leading) to pressure on the bottom line of all companies (and) that is why new investments which will be made by companies will be under pressure,” said Mehra.

    With the progress made on the political front and which has had a positive infectious effect on the economy, Egypt is likely to remain the top paints and coatings market in North Africa in the near future. 
    Related Searches
    • industrial
    • chemical
    • coatings
    • paints
    Suggested For You
    HMG Paints Reports Positive Feedback on Contract Matt Emulsion HMG Paints Reports Positive Feedback on Contract Matt Emulsion
    Overview of Iranian Paint and Coatings Industry Overview of Iranian Paint and Coatings Industry
    Relief Funds Accelerate into Puerto Rico Relief Funds Accelerate into Puerto Rico
    Raw Material Availability, Price Increases  May Be Biggest Issue for  Coatings Industry in Europe Raw Material Availability, Price Increases May Be Biggest Issue for Coatings Industry in Europe
    Coatings World Company Profile:  Siltech Corp. Coatings World Company Profile: Siltech Corp.
    Resins Update Resins Update
    A Coatings World Q&A:  Siltech Corporation A Coatings World Q&A: Siltech Corporation
    RPM Reports Fiscal 2021 3Q Results RPM Reports Fiscal 2021 3Q Results
    Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers
    Coatings World CEO Forum Part 2 Coatings World CEO Forum Part 2
    Dunn-Edwards Launches DECOPRIME Dunn-Edwards Launches DECOPRIME
    PPG Opens China Application Innovation Center in Zhangjiagang PPG Opens China Application Innovation Center in Zhangjiagang
    PPG Becomes Vizient PPG Becomes Vizient's Paint Supplier
    AkzoNobel Invests in Coatings Application Technology from Qlayers AkzoNobel Invests in Coatings Application Technology from Qlayers
    What Are Automotive OEM Customers Looking for in Terms of Performance? What Are Automotive OEM Customers Looking for in Terms of Performance?

    Related Africa Report

    • COVID-19 Disrupts South Africa’s Zinc  Coatings Growth Projections

      COVID-19 Disrupts South Africa’s Zinc Coatings Growth Projections

      ...
      Shem Oirere, Africa Correspondent 01.11.21

    • Outlook of South Africa’s Coil Coatings Market

      Outlook of South Africa’s Coil Coatings Market

      ...
      Shem Oirere, Africa Correspondent 10.08.20

    • COVID-19 Impact on Africa’s Paint Industry

      COVID-19 Impact on Africa’s Paint Industry

      ...
      Shem Oirere, Africa Correspondent 08.10.20


    • Coronavirus Could Stall Key Paint Consuming Projects in South Africa

      ...
      Shem Oirere, Africa Correspondent 04.15.20

    • Role of Hospitality Industry in Growth of Africa’s Paint Market

      ...
      Shem Oirere , Africa Correspondent 02.19.20

    • Impact of AfCFTA on Africa’s Paint and Coatings Market

      At least 44 member-countries of the Africa Union signed the African Continental Free Trade Area (AfCFTA) agreement
      Shem Oirere, Africa Correspondent 12.11.19


    • How Africa Can Mitigate High TiO2 Prices

      ...
      Shem Oirere, Africa Correspondent 09.30.19

    • How Africa Can Mitigate High TiO2 Prices

      ...
      Shem Oirere, Africa Correspondent 08.23.19

    • New Technology, Cost-Cutting Options Dominate EACC Event in Nairobi

      The East Africa Coatings Congress (EACC) in Nairobi featured two days of exhibitions and technical presentations.
      Shem Oirere, Africa Correspondent 08.09.19


    • Outlook of West Africa’s Offshore  Coatings Market

      Outlook of West Africa’s Offshore Coatings Market

      ...
      Shem Oirere, Africa Correspondent 05.31.19

    • South Africa Road Marking Coatings  Market Set to Grow

      South Africa Road Marking Coatings Market Set to Grow

      ...
      Shem Oirere , Africa Correspondent 04.12.19

    • Housing, Furniture Boom to Drive Kenya’s  Wood Coatings Market

      Housing, Furniture Boom to Drive Kenya’s Wood Coatings Market

      ...
      Shem Oirere, Africa Correspondent 02.11.19


    • Nigeria’s Automotive Refinish Coatings Market on Growth Path

      ...
      Shem Oirere , Africa Correspondent 12.03.18

    • South Africa Grapples with Skills Shortage

      The industry is concerned the huge investments in R&D by paint manufacturers could be going to waste.
      Shem Oirere, Africa Correspondent 10.03.18

    • Southern Africa Coatings Show Concludes

      ...
      Shem Oirere , Africa Correspondent 08.10.18

    Trending
    • Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue For Coatings, Ink Sectors
    • Sika Expands Production Capacity In Qatar
    • Hempel Protects O2 Tidal Energy Turbine
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • PPG Extends Tender Offer Period For Tikkurila
    Breaking News
    • VideoBite: Engineered Polymer Solutions
    • Shepherd Color Unveils Bismuth Vanadate Yellow Pigment
    • HMG Paints Reports Positive Feedback on Contract Matt Emulsion
    • Hempel Protects O2 Tidal Energy Turbine
    • PPG Extends Tender Offer Period for Tikkurila
    View Breaking News >
    CURRENT ISSUE

    April 2021

    • Coatings World Company Profile: Siltech Corp.
    • UV-Curable Coatings
    • Coatings World Interviews Axalta CEO Robert Bryant
    • Resins Update
    • Building a Sustainable Future
    • Paint for Commercial Vehicles Goes Greener
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    BIO-CAT Microbials’ OPTI-BIOME Probiotic Strain Receives FDA “Letter of No Objection” on GRAS Status
    6th Annual Dietary Supplements Regulatory Summit Scheduled for July 13
    Bunge Invests $47.5 Million in Australian Plant Proteins
    Coatings World

    Latest Breaking News From Coatings World

    Jebsen & Jessen, Innospec Sign Distribution Agreement
    VideoBite: Engineered Polymer Solutions
    Shepherd Color Unveils Bismuth Vanadate Yellow Pigment
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Medtronic Introduces Extended Infusion Set in Europe
    BioSig Launches Software Update for PURE EP Electrophysiology Platform
    Katena Acquires Ophthalmic Surgical Instrument Maker ASICO
    Contract Pharma

    Latest Breaking News From Contract Pharma

    BioVersys Gets EIB Funds to Address Antimicrobial Resistance
    Microbiologics Expands Virology Services
    ATMPS, Ori Biotech Integrate Digital Platform for Cell & Gene Therapies
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Cosmoprof Worldwide Bologna Postpones 2021 Show
    Native Launches Broad Spectrum SPF 30 Mineral Sunscreens
    Revieve Launches Skin Coach
    Happi

    Latest Breaking News From Happi

    Hallstar Beauty Names New President
    The Fragrance Foundation Announces the 2021 Awards Finalists
    Azelis Earns 'Coup de Coeur' Award at Cosmetagora 2021
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    SE-DA Invests in Kornit Presto S
    Acrylic Resins Market Worth $21.9 Billion by 2025: MarketsandMarkets
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Epson SurePress reaches milestone
    Maxcess updates user interface for Fife guiding Sensor
    Bobst announces virtual packaging industry event
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    PCMC Redesigns Rx200 and Mako Clipper Wet Wipes Machines
    PFNonwovens Adding New Capabilities in Znojmo
    Russ Torres Named Group President of Kimberly-Clark North America
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Biogennix Rolls Out Agilon Strip Bone Graft
    Global Bone Tumor Ablation Devices Market to Top $111 Million by 2027
    GreenBone Ortho Closes 10 Million Euros Series B Funding Round
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Virtual ASMC 2021 Spotlights Advanced Semiconductor Manufacturing Excellence
    European Commission's Innovation Radar Acknowledges 3 ARMOR Innovations
    SUPERSMART Wins 'Best Publicly Funded Project Demonstrator' in 2021 OE-A Competition

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login