Peru. Infrastructure development in the country is increasing the demand for paints and coatings, supported by the country's recent GDP growth.
According to the National Institute of Statistics and Informatics (INEI), Peru's GDP expanded by 5.28% in April of this year compared to the same month of the previous year, reaching the highest rate in 32 months. This economic growth is creating a favorable environment for the paints and coatings industry.
This economic momentum is expected to continue in the coming years. The World Bank projects that the Peruvian economy will grow by 2.7% in 2024, after a slight contraction of 0.6% in 2023 due to adverse weather conditions, social unrest, and decreased business confidence. By 2025, an additional 2.4% GDP growth is forecast. This growth will benefit several paint and coatings manufacturers, both national and international.
Among the main companies in the sector are Corporación Crons Peru, with sales of 96 million dollars; Anypsa Corporation, with $84 million in sales; Pinturas del Peru, with 31 million dollars in sales; and Sherwin-Williams Peru, with $20 million in sales, according to statistics from Dunn & Bradstreet. Sherwin-Williams Peru, for example, has stores in Talara, Chimbote, Arequipa, and Lima, demonstrating its extensive presence in the country.
The growth in demand for coatings is not limited to industrial sectors. The expansion of residential housing and commercial construction is also increasing the demand for architectural paints and coatings for the automotive aftermarket. Developing infrastructure, especially the construction of new ports, is playing a crucial role in this growth.
One of the most outstanding projects is the Chancay Multipurpose Port Terminal, an investment of 3,500 million dollars by the Chinese state-owned company Cosco Shipping. This project, which began in 2019 and is expected to be completed in 2025, will significantly boost trade between Peru and China. In addition, another major port project is being developed in San Juan de Marcona, with an investment of $405 million to support a $2 billion mining project led by Jinzhao.
Increased investment in infrastructure and improved logistics in the south of the country, driven by these port projects, are also contributing to the growth in demand for paints and coatings. However, there is a risk associated with the Peruvian economy due to its dependence on China as its main trading partner. If the Chinese economy slows down, it could negatively affect Peru.
Demand for housing is also on the rise, facilitated by GDP per capita growth and the expansion of government programs for the construction and financing of new units. The construction market in Peru reached $35.7 billion in 2023 and is expected to grow at a compound annual rate of 3% between 2025 and 2028. This growth is attributed to investment in mining, housing, electricity and transport infrastructure projects.
The increase in per capita income, which has gone from $2,040 in 2002 to $7,126 in 2022, is driving demand in the real estate market. Government programs such as Fondo MiVivienda are helping to close the housing financing gap, offering subsidized mortgage loans for sustainable housing. These efforts, along with the involvement of the private sector and multilateral lenders, are creating a favorable environment for the growth of the paints and coatings market in Peru.
Infrastructure growth in Peru is driving a growing demand for paints and coatings, driven by rising GDP and investments in key infrastructure projects. With the expansion of residential and commercial construction, and the support of government programs, the future of the paints and coatings industry in Peru looks promising.
