Buoyant Construction Market Drives Demand for Building Paints in South Africa.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c65746) has announced the addition of the Frost & Sullivan report "South African Building Paints Markets" to their offering.

This Frost & Sullivan research service titled "The South African Building

Paints Markets" provides a strategic overview of these markets, which includes major industry challenges, drivers, restraints and their impact on the market. It also discusses key success factors and examines the potential impact of legislative changes on the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: water-based paints, solvent-based paints, and stains and varnishes.

"Building paints in South Africa are experiencing high demand largely due to a booming construction market ahead of the 2010 Football World Cup," remarks the analyst of this research service. "Paint manufacturers expect this event and its associated preparations and developments to drive significant growth of the building paints market for some time to come." New opportunities are emerging for both local and international participants in a market that is competitive but not yet saturated. Currently, the market is dominated by larger companies, perhaps because of the strong perception in South Africa that manufacturers who offer product guarantees and invest in extensive advertising campaigns offer better quality for money. As a result, smaller manufacturers are finding it difficult to gain market share.

In terms of demand for specific paint formulation types, water-based paints are the most commonly used in South Africa and have experienced continuous quality enhancements that have placed them on par with solvent-based paints. Water-based paints show good potential for further technological advances and are set to gain greater market share. Wood-based products are the most mature and are expected to continue growing, though at a slower rate compared to water- and oil-based paints. A relatively new group of paints, eco-friendly paints, are becoming popular with highly educated and top-earning end users who are more aware of the impact that traditional paints can have on the environment.

Anticipated Legislation Likely to Bring about Changes in Consumer Spending

The South African building paints market has been evolving over the last four years and new competitors are currently competing for the increasing market size. As a result, the overall competitiveness levels in the market have increased. Niche producers, especially those that are able to cater to specific demand are experiencing higher sales volumes. At the same time, rising awareness about the detrimental effects of paints is causing changes in the market. Legislative changes are also anticipated and long-term sustainable growth is only possible through customer relationship management and quality products.

Although the South African building paints market is not as advanced as its European counterpart in terms of legislation, awareness about issues such as the presence of lead and volatile organic compounds (VOC) in paints and related health issues is definitely increasing. This is causing a change in consumer spending - for instance, rising demand for low VOC paints in the fast-growing 'do-it-yourself' (DIY) category. "Regulatory compliance and consumer demand for healthier and more environment-friendly products are having an increasingly important effect on consumer spending patterns," says the analyst. "This is also important in winning big industry contracts, as many large corporations are not prepared to take litigation risks."

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