International. The total paints and coatings market in South America was over 2.9 million metric tons in 2013 and is projected to increase to more than 3.8 million metric tons in 2018. This equates to an average annual growth rate of 5.6%, according to consulting firm IRL.
On a country-by-country basis, Brazil is by far the largest domestic market, accounting for nearly 60% of total demand. Bolivia, Paraguay and Uruguay are very small by comparison. All countries are expected to enjoy good growth rates during the forecast period, in particular, the development market of Bolivia (from a very small base) and the dynamic market of Brazil that with the football World Cup and the Olympic Games in 2016, will stimulate the demand for all types of coatings.
Architectural and decorative coatings for consumer and professional uses account for about three-quarters of the overall American market, although this proportion varies from country to country. Growth is forecast to be highest in the architectural and general industrial segments. This is influenced by growth in Brazil's dominant market, where significant infrastructure investment is currently taking place.
Growth in the marine protection coatings segment is being driven by the evolution of the oil and gas sector, especially in Brazil, where there is currently extensive activity in the field of deep water oil reserves.
