Paint market poised for growth on construction sector rebound
Tuesday, November 3rd, 2020 00:00 | 2 mins read
Steve Umidha @UmidhaSteve
Demand for paint and coatings is forecast to recover from next year onwards and gains will be driven by strong rebound in construction activities – which will in turn stimulate the demand in the architectural services market.
As a result, experts predict that manufacturers will adopt new environmentally friendly, low volatile organic compounds (VOC) paint and coating products to meet stricter government regulations and changing consumer tastes.
Frost & Sullivan says in a recently released report that despite the challenges of low raw material availability and price fluctuations, Kenya and Tanzania markets are expected to grow positively due to rising urbanisation in both countries.
Additionally, the rising purchasing power of the citizens is expanding the middle class demographic, which, in turn, is creating a need for more residential and commercial buildings – the main end users of decorative paints and coatings.
The Frost & Sullivan’s Decorative Paints and Coatings Market for Kenya and Tanzania Forecast to 2020 report further shows that the total market size stood at 66.2-million litres in 2015.
And this is expected, it adds, to hit 91.5-million litres by 2020 and well over 20-million litres in 2021
That demand, according to Crown Paints CEO Rakesh Rao, will also be heightened by the residential improvement and repair market which he believes will provide the majority of demand gains as consumer spending power rises and homeowners undertake more home improvement projects.
“We lost the second quarter but we think we are going to do better for the remainder of the year.
Commercial aspect is not doing well but the residential market is really doing well,” he says.,
The hotel and tourism industry, Rao adds, will also pick up, especially from next month all through to 2021 on expected repairs and renovations that had been abandoned because of closures and layoffs brought by the Coronavirus pandemic.
Kenya’s tourism sector was one of the worst hit sectors by the pandemic but the mood has significantly changed with domestic holiday business revamping after lifting of restrictions on inter-county travel since July and further lifting of other precincts in August.
Several hotels particularly in the coast circuit have seen an uptick in local tourist numbers, while attractions in other parts of the country continue to report more arrivals by car, train and aircraft which could also be advanced by the approaching December holidays, typically a good period for the sector.
“We are already seeing increased orders for repainting from big hotel brands like Serena and this is clearly a good sign for the industry,” said Rao.
The new residential paint market, according to the report will post the fastest growth through 2020 as new housing construction continues to recover from the corona whose impacts continue to be felt.