Frost & Sullivan: Nigeria Set to be a Lucrative Market for Industrial Paints and Coatings Manufacturers

CAPE TOWN, South Africa, March 18, 2014 /PRNewswire/ -- The increase in infrastructure and maintenance spending by the private and public sector in South Africa, Nigeria, and Kenya is lending momentum to the industrial paints and coatings market in these countries. Nigeria presents the most opportunities due to the Government's success in stimulating private and public involvement in development projects, such as the landlord management model, introduced in 2006, to enable private companies to handle operations at Nigeria's ports. With the expected rollout of several new development projects by the Government as well as private players, the local production capacity utilisation of paints and coatings in Nigeria will increase significantly from its 2010 level of 35 to 40 percent.

New analysis from Frost & Sullivan, Analysis of the Industrial Paints and Coatings Market for South Africa, Nigeria and Kenya (soon to be released), finds that the sales volume of industrial paints and coatings across the three countries stood at 101.2 million litres in 2012. This is estimated to reach 142.1 million litres in 2017. The study covers wood, powder, can and coil, marine, and industrial protective coatings. Powder, marine and industrial protective coatings represent key growth areas within the market.

"New projects announced in the oil and gas sector and allied industries in South Africa, Nigeria and Kenya are fuelling the demand for industrial paints and coatings products," said Frost & Sullivan Chemicals, Materials & Food Industry Analyst Anthony Lawrence. "In South Africa, the Government and other private companies such as Sasol and Petro SA are the key forces driving the launch of new projects and in turn widening market potential."

However, the rising price of raw materials is pushing up the cost of industrial paint and coating production. The fluctuating exchange rates are also a cause for concern especially for Kenyan industry participants, as most raw materials used in the manufacturing of paints and coatings are imported. Furthermore, the influx of competitively-priced paints and coatings into South Africa from countries such as China and India is diverting customers from local manufacturers.

To remain competitive, local participants in the South African, Nigerian and Kenyan industrial paints and coatings markets should offer products with a high price-performance ratio and ensure availability. They must also provide robust customer service and technical support to build and strengthen relationships with suppliers, add value, and retain customers.

"Local market participants should consider affiliating with well-established international brands in order to maintain high quality, while respecting the relevant health standards, as well as obtain environmental compliance accreditation," advised Lawrence. "These affiliations will also assist in making customers completely aware of the grades of paints and coatings so that they can use the right product for the right application."

If you are interested in more information on this research, please send an email to Samantha James, Corporate Communications, at [email protected], with your full contact details, company name and website, city, and country.

Analysis of the Industrial Paints and Coatings Market for South Africa, Nigeria and Kenya is part of the Chemicals & Materials (http://www.chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Supply and Demand Analysis of the Decorative Paints and Coatings Market in Kenya and Tanzania, and South African Automotive Refinish Paints and Coatings Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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SOURCE Frost & Sullivan