Seminars & publications
November 2024
Paints Around the World and Regional Contextualization of Added Value
The presentation by RY & Associates at the 2nd Latin American Paint & Pintura Forum, to be held in Bogotá, Colombia, in November 2024, will address the dynamics of the global paint market and regional value-adding opportunities, with a special focus on Latin America. The region accounts for 9.3% of the global paint market volume, but captures only 6.6% of its value, highlighting the potential to increase the added value of sales across all Latin American countries.
We will explore the impacts of external factors such as economic challenges, inflation, and high interest rates, and how these elements influence market trends and affect the local industry. The discussion will cover how Latin American companies, in the face of external events and, more importantly, internal factors such as population purchasing power and geopolitical instabilities, have overcome supply chain crises, transforming these challenges into opportunities to add value.
December 2023
Purchasing Power and Paint Consumption in South America
Francisco Rácz & Washington Yamaga – R&Y Associates for Paint&Pintura December 2023
The most striking and significant driving force in the paint market of a country stems from the purchasing power of the middle class, directly influencing paints used in construction, infrastructure, home maintenance, automotive maintenance, and various other applications of painted items. A relevant and crucial analysis lies in the relationship between purchasing power expressed by the Gross Domestic Product, indexed to local purchasing power in dollars (US$ PPP - Purchasing Power Parity), and per capita paint consumption.
April 2024
The uncertainty and volatility scenairos favors whom?
Francisco Racz, Washington Yamaga - RY & Associates for Paint&Pntura April 2024
The global scenario of uncertainties and volatilities is reshaping the paint market, driven by the growing power of the middle class in economies like India, China, and South America. With projections indicating significant changes in the coming years, the question arises: who will benefit from this evolving landscape? Discover how trends in the middle class, geopolitical dynamics, and supply strategies are shaping the future of the paint industry and its key players in this strategic analysis article by RY & Associates.
July 2024
Global Convergence of Paints: An Integrated and Sustainable Future
Francisco Rácz, Washington Yamaga RY & Associates for Paint&Pintura July 2024
The convergence of global trends in paint marketing is transforming the sector in South America. Leading brands, such as those from AkzoNobel, Codelpa, Qroma, Axalta, Suvinil, Sherwin-Williams, Sinteplast, Iquine, Eucatex, and others, are leading with technological innovation, sustainability, digitalization, and personalized marketing campaigns. These brands adapt global solutions to meet local needs, strengthening their market presence. The integration of sustainability and innovation is crucial, while transparency and consistent delivery ensure consumer trust. In an interconnected global scenario, these strategies are essential for the growth and resilience of brands in the region.
October 2024
Innovation in Paints and Sustainable Scale
Francisco Rácz & Washington Yamaga - R & Y Associates for Paint & Pintura
The article "Innovation in Paints and the Sustainable Scale" explores how innovation is essential to promote a circular economy in the paint sector, focusing on reducing waste and environmental impact. Key areas include the development of sustainable paints, such as water-based and biomaterial-based options, and solutions for recycling waste and packaging. Although adoption varies globally, with Europe and North America leading the way, regions like South America, including Brazil, have strategic potential. Collaboration between companies, governments, and consumers, as well as regulations, is crucial for this sustainable transformation.
February 2025
A New Supply Chain: Strategic Pillar for a Sustainable Future – RY & Associates February 2025
The paint industry plays a crucial role in various sectors, from construction and infrastructure to the automotive and durable goods industries, directly reflecting the performance of the economy.
With recent macroeconomic growth projections for Brazil and other South American countries, the outlook remains promising but not without challenges. This article analyzes the immediate impact of these projections on costs, demand, sustainability, and innovation in the paint industry, while exploring strategies to mitigate associated risks.
November 2023
Coatings in South America 2027: Perspectives and Projections
Francisco Rácz & Washington Yamaga - RY & Associates for Paint&Pintura Nov 2023
The consolidation of various drivers that will influence the coatings industry in South America in the coming years can provide an understanding of the forces shaping the region's businesses. It also conveys the understanding that they are interconnected, offering directions and insights. The discussed groupings are sensitive to the overall economic behavior and pertain to the market for paints in new construction and infrastructure, general industrial coatings for durable goods, and resale. They focus on added value, productivity, sustainability solutions, and their regulations.
This is based on RY & Associates' proprietary projections, published by the ECJ (European Coatings Journal) for the Abrafati Daily 2023.
February 2024
The purchasing power and paint consumption in Markets Around the World
Francisco Rácz & Washington Yamaga – Rácz, Yamaga & Associates for Paint&Pintura Feb 2024
In the December 2023 issue of the Paint&Pintura magazine, we presented the relationship between per capita paint consumption and the evolution of per capita GDP, considering the local purchasing power of each country in South America. The correlation between these variables indicates regional purchasing power as the main driver of the paint market.
In this edition, we expanded this concept by comparing this assessment and its impacts on the largest paint markets in the world, such as China, India, USA, Germany, Brazil, Japan, Great Britain, and France. The analysis provides a more comprehensive understanding of the paint market dynamics, highlighting the influence of the local population economic power.
May 2024
Opportunities and Alliances in the Transition of Coatings Industry in South America (2024-2028)
Francisco Racz, Washington Yamaga RY & Associates for Paint&Pintura May 2024
The volume of paints in 2023 across its various segments exceeded expectations, and challenges were met with notable increases in value and margins, despite local and global turbulences. Growth forecasts for the paint industry in South America are strongly influenced by global macro trends. It is perceived that the recovery in South America may occur before that of other regions. However, according to studies by RY & Associates, it is important to note that, although growth in Brazil indicates continuity, it is still projected to be almost twice as slow as that in Asian markets such as China and India. The article highlights market diversification and its opportunities as the main drivers of the transition.
August 2024
Automotive Refinish: Emerging Perspectives and Challenges
Francisco Racz & Washington Yamaga – Racz, Yamaga & Associates for Paint&Pintura August 2024
Within the paint market, automotive refinishing is essential for the automotive industry, playing a crucial role in the maintenance, repair and customization of vehicles. With evolving technologies and changing consumer patterns, the repainting market is undergoing significant transformation. This article explores growth forecasts for the coming years, highlighting trends that will shape the sector and the importance of adapting to changes to ensure business sustainability. As pointed out by the 70th Paint & Pintura Forum of Grande ABC, it is estimated that the repainting market in Brazil will reach 110 million liters in the next five years, catering to a growing fleet of vehicles. The incidence of automotive accidents, the trend towards customization, and economic development also drive demand for repainting services.
November 2024
The Evolution of GDP and Per Capita Paint Consumption in Latin America
Francisco Racz, Washington Yamaga – RY & Associates
The relationship between Gross Domestic Product (GDP) per capita and per capita paint consumption is a key indicator of economic dynamics and consumer behavior in Latin America. As the region's economies develop, increasing disposable income drives key sectors such as construction, renovation, and property maintenance, where paint usage plays a vital role. Here, we explore how the evolution of GDP per capita reflects in paint consumption, analyze the factors that influence this relationship, and present projections for 2030, considering historical trends and new developments in the market.
Mar 2025
The New Geopolitics of Sustainability Impacts the Global Paint Industry. What is the Impact on South America?
Francisco Rácz & Washington Yamaga – March 2025
In recent years, the environmental agenda has become a central factor in the global competitiveness of industries, and the paint sector is no exception. With contrasting environmental policies in the United States, Europe, and China, paint companies face a shifting landscape that demands strategic adaptation. This article discusses the possible scenarios of this new geopolitics in the paint industry and its regional impact.
January 2025
Closing 2024 and Outlook 2025-2029 for the Paint Market in South America
The paint market in South America closed 2024 with growth generally exceeding GDP, driven by construction, sustainable solutions, and digitalization. The architectural coatings segment led the way, with increased adoption of premium and eco-friendly products, while the industrial, automotive, and consumer goods segments also advanced. Challenges such as high raw material costs and economic instabilities persisted. For 2025-2029, key trends include innovation in functional coatings, sustainable practices, and personalized solutions. Regional integration and collaboration between companies and governments will be essential to overcoming barriers and seizing new opportunities.
March 2024
The Inevitable Route of Sustainability in South American Coatings
Francisco Racz & Washington Yamaga – RY & Associates for Paint&Pintura March 2024
In recent years, the persistence of geopolitical tensions and business risks has led to a shift in perspective regarding the urgency of the issues to be addressed. Global issues related to opportunities in the sustainability route are becoming increasingly close, simultaneous, and unavoidable. The sustainability route in coatings is an essential journey in the pursuit of environmentally friendly and survival-friendly practices. Companies are investing in sustainable paint formulations, adopting natural pigments and biodegradable alternatives, reducing environmental impact throughout the product lifecycle and across the supply chain, in the production and use of paints. The article describes the current priorities on the sustainability route in coatings in South America
June 2024
Communication and Value Perception in the Architectural Paint Market Francisco Racz & Washington Yamaga – RY & Associates for Paint&Pintura
June 2024
Architectural coatings in Brazil are classified into economic, standard, and premium paints, according to a set of performance criteria that primarily highlight durability and yield. The pricing strategy involves a complex value composition that falls into the trap of its own nomenclature, branding economic paints as offering the best price for the same quality. These designations have met specific needs in the past, but now generate conflicting concerns in the evolution of consumer values.
September 2024
Coatings in South America: The Last 5 Years and the Next 5 Years
Francisco Rácz & Washington Yamaga
R & Y Associates for Paint&Pintura, September 2024
In the past five years, the paint market in South America has undergone significant transformation, driven by economic recovery, rising commodity prices, and the expansion of the construction sector. The pandemic also spurred a boom in home renovations, further strengthening the industry. Digitalization and innovative marketing have increased brand visibility, while new technologies, such as nanotechnology and functional-smart paints, have redefined consumer expectations. Looking ahead to the next five years, innovation, sustainability, and adaptation to local realities will be essential for companies to succeed. These trends will shape the leaders in South America's competitive paint market.
December 2024
Why does South America remain fertile ground for paint investments? Time for smart Sustainability?
With a market in transformation, driven by geopolitical shifts, economic pressures, and the quest for sustainable innovation, the region stands out as a hub of opportunities and challenges. Over the next five years, global policies and the evolution of multilateralism will shape the future of paints in South America, redefining business strategies and paving the way for new horizons. Discover how to navigate this dynamic landscape with exclusive insights from Francisco Racz and Washington Yamaga of RY & Associates.
April 2025
The Future Cycle of Brazil's Paint Industry in the South American Landscape
Brazil is the fourth largest paint market in the world and remains the leading market in South America. However, it faces a challenging scenario as neighboring countries like Colombia, Peru, and Paraguay experience faster growth. This shift in regional dynamics is not just a threat — it is also a call for strategic adaptation. In a context where paint demand evolves alongside construction, infrastructure, and innovation trends, Brazil has the opportunity to rethink its role and renew its competitiveness. This article analyzes how the industry can reinvent itself, strengthening its leadership through technology, sustainability, new business models, and deeper integration with the continent’s transformations. The current slowdown does not have to mean a loss of relevance. It can instead be the starting point for a new phase — one that is more connected, efficient, and aligned with the demands of the future.
Francisco Z. Rácz & Washington T. Yamaga (R Y & Associates) - Paint & Pintura March 2020
On one hand there is a mismatch of chemical industry in emerging countries, in relation to other more advanced markets in the world. On the other, there is the opportunity to modify the use and manufacture of paints through advanced digital resources. Today we are focused on manufacturing excellence, customer experience and obsession to sell paint to new markets. The digital transformation in emerging countries can happen before many industries are expecting. The high-productivity digital integrated modules for clears, catalysts and colors are already being designed and produced in Brazil and exported to developed countries.
Francisco Z. Rácz, Washington T. Yamaga (R Y & Associates) for Paint & Pintura December 2019
The combination of Interest Rate, Inflation, Exchange Rate and GDP for the coming years, may impact the coatings industry very differently from the historical evolution.
Planning 2020 already points to opportunities for technological transformation and new business models unprecedented in Brazil coatings industry.
The Brazilian market in 2025 is expected to be over $ 6 Billion. The 80% of new paint and coating opportunities will be in the building elements, transportation, automotive and anti-corrosion segments.
Francisco Z. Rácz, Washington T. Yamaga - (R Y & Associates) for Paint & Pintura November 2019
Rácz, Yamaga & Associates will be at the next China Coat 2019 (November 18-19-20) and invited by its organization to develop the theme BRAZILIAN COATINGS MARKET - TRENDS & OPPORTUNITIES. The presentation discusses the impact of recent changes in political economic environment and its impact in the paint industry. It analyzes the competitive relationship between global, regional and local multinational companies, technology opportunities and supply chain modifications in South America, particularly in Brazil with market projections over $ 10 Billion by 2030.
Francisco Rácz & Washington Yamaga - Rácz, Yamaga & Associates para Paint & Pintura October 2019
The stage for South American coatings market is occupied by thousands of suppliers. This may sound daunting, but it is natural for a mature, sub-segmented market such as coatings: low risk and reasonable return on investment. Given the complexity of technology, distribution and segmentation, it is also natural that less than a hundred suppliers occupy almost 90% of the market, which in 2018 consumed $ 8.1 billion inks for a volume of 3.1 billion liters.
Francisco Z. Rácz & Washington T. Yamaga (R Y & ASSOCIATES) – Paint & Pintura September 2019
The prospects for South America Coatings are promising. The market will growth from $ 8.1 BL in 2018 to above $ 20 BL in 2030 in all countries.
The global coatings industry is impacted by mega drivers such as mobility, health and environmental protection, digital productivity changes and other trends. South America is not excluded from this process and from access to global opportunities, mainly due to the scale of value added in this market.
Francisco Rácz & Washington Yamaga (RY & Associates) for China Coat Journal – September 2019
Coatings market in South America was estimated to be at US$ 8.1 billions in 2018. It should reach a level close to US$ 12 billions in 2023 and over US$ 20 billions in 2030, with good and continuous growth rates in all countries. The South American region over the next 3 to 5 years is certainly not going to be at the forefront of disruptive paint technologies but certainly will be rapidly capturing opportunities to put them into new action. Most countries will see a continuity of higher growth rates in view of their overall stability, strong emerging middle class and infrastructure investments.
THE ART OF INNOVATION IN EMERGING COATINGS MARKETS
Paint and coatings are defined as mature market and depend on the evolution of substrates that will be painted. In emerging markets, innovation did not focus on disruptive events generation that could create new markets. The companies considered to be successful in these regions have been distinguished by the ability to understand Innovation much more as the art of putting the new in action with agility and high productivity impact.
EUROPEAN COATINGS April 2019
The article based on information provided by Franzisco Z. Rácz and Washington T. Yamaga of Rácz, Yamaga & Associates (www.ry-associates.com)
The paint market in Brazil has gone through a few difficult years, but seems to have bottomed out and has recently been developing slightly positively again. Sales are being driven above all by the growing middle class. Experts are forecasting annual growth of around 3.4% for the coming years. A market volume of over 2 billion litres is to be achieved by 2023.
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Planning for structural growth in the Brazilian coatings market
By Francisco Rácz & Washington Yamaga, Rácz, Yamaga & Associates
EUROPEAN COATINGS SHOW DAILY 3/ 21 MARCH 2019
Coatings are known for its wide spectrum of applications and as such, their consumption is driven by several factors related to the markets where they are utilized. Brazil is moving out of a deep recession and the years of 2017/2018 marked a halt in the depression. The 2019 is the beginning of a new cycle.
Francisco Racz & Washington Yamaga (RY & Associates) – Paint & Pintura July 2019
An accelerated process to convert the concepts of paints by their performance and function, is already a strategic focus for the leading brands in Brazil.
The architectural coatings in the past ten years had their average price decreasing 10% in dollars. There was a loss of margins for not recomposing costs and an involution of product mix. The lower value coatings grew while more functional defined coatings lost their share. The premium wall paints fell by 31% in volume between 2009 and 2018 while the other paints grew 33% in a market that practically did not grow during the same period. The end user consumed more paints with lower durability and inferior application yield, despite numerous new products launching in the period.
FRANCISCO RÁCZ & WASHINGTON YAMAGA (RÁCZ, YAMAGA & ASSOCIATES) – Paint & Pintura May 2019
There is a certain degree of uncomfortable optimism within coatings industry and its supply chain, indicating that market recovery would be slow and incompatible with the need to recover the lost 10 years in 5 years. This was the attention focus for industry's CEO panels during recent Paint & Pintura Forums in Recife and Joinville.
It is time to accelerate a technological agenda and regulatory agenda to protect value creation. We must begin now if we do not want lose competitiveness and become an outdated industry.
Francisco Racz & Washington Yamaga (RY & Associates) - Paint & Pintura June 2019
The 2019 first semester closing brings to the paint market a small volume of recovery over the first half of 2018, but far from expectations for 2019.
Coatings drivers continue anchored in the middle-class consumption and infrastructure initiatives. The expected reaction for the year 2019 has not yet occurred, basically due to the volume of architectural coatings, which are directly linked to the middle-class consumption and investments. Performance coatings performed better mainly due to industrial and automotive coatings.
Francisco Racz & Washington Yamaga (RY & Associates) – Paint & Pintura April 2019
The coatings industry has enjoyed a remarkable period of innovation in recent decades. Some of the major drivers were the conversion of solvent based paint to water based, VOC reduction, the improved film functionalities, popularization of tinting systems among many. The digital processing and measurements as well as nanometric formulations and the use of materials from renewable sources dictate the new trend. The understanding of customer journey and the impact on purchase decision are now the focus of value generation.
Francisco Rácz & Washington Yamaga (RY & Associates) for Paint & Pintura March 2019..
Axalta CEO Charles Shaver's recent statement during the Coatings Summit in Paris in February 2019 can be interpreted as reinforcing many of the industry's reflections in regions such as South America:
"Coatings industry has a strong financial position and is well positioned to continue the activities of mergers and acquisitions."
Our articles and lectures have addressed these issues within the context of South America, anticipating regional responses to global statements.
Francisco Rácz & Washington Yamaga (RY & Associates) - Paint & Pintura January 2019
A good number of companies will carry out some type of investment in 2019. Two concentrations of initiatives are noteworthy. The first is the concern of companies to regain the workforce capacitation, accelerating training and qualification programs. The second focus is productivity demand and innovation-focused technologies. 60% of the industry will launch new product and services.
Coatings companies Brazil shared the same concern, and those who have prepared in difficult times will step forward in domestic market positioning as well global export markets as they achieved quality and competitiveness becoming globally competent.
Francisco Rácz & Washington Yamaga (RY & Associates) – Paint & Pintura December 2018
Considering the moment of urgency and importance, the perceptions and reactions with the short-term repositions are optimistic. The coatings market in Brazil finishes another year with growth but expects a short term a full recovery with the return of structural investments.
For all segments, the new volume levels for the resumption will require not only the response to the demand with capacity utilization, but also a review in the productivity patterns.
Francisco Rácz & Washington Yamaga (RY & Associates) - Paint & Pintura September 2018
Considering the evolution of the middle class in a conservative growth of the economy, the market of architectural coatings in Brazil should reach a volume close to 1.9 billion liters in 2030, with an average growth rate of 3% aa. from 2017 to 2030. Sales in this market will exceed US $ 5.0 BL in 2030, with average growth of around 6% aa in the same period (Diagnosis of Architectural Coatings market in Brazil August 2018 – Paint & Pintura).
Francisco Rácz & Washington Yamaga (RY & Associates) for Paint & Pintura 2018
The volume projections for Brazil coatings industry planning cycle have always referred to macroeconomic factors projections such as the GDP. However, 2018 volatility and the decreasing volume expectation, take the industry into urgency. The projections for 2019 already clearly indicate the need for business above the projected population growth and certainly with significant productivity gains.
Francisco Rácz & Washington Yamaga (RY & Associates) – Paint & Pintura May 2018
The Automotive Refinish Coatings market in Brazil has been increasing in the last decades and should continue for the coming years. It follows the growth of the Brazilian vehicle fleet from 34 million units (motorcycles not included) in 2009 surpassing 52 MM in 2017 is expected to approach 65 MM in 2022/23 despite the economy oscillations.
Francisco Rácz & Washington Yamaga (RY & Associates) - Paint & Pintura June 2018
Decorative Coatings, a market of US $ 2.8 Billion, almost 60% of the Brazilian paint market, has projected an average growth in sales volumes of 3.5% per year for the next five years.
Exhausting the repertoire of organic cost reduction, productivity gains have proved insufficient to prioritize growth strategies and sustain margin margins. The industry has reacted to the needs with clear repositioning in response to the new business demand.
Francisco Rácz & Washington Yamaga (RY & Associates) – Paint & Pintura July 2018
There are three areas within coatings innovation and digitization which are already highlighted with investments and structural changes: Sales, Marketing and Research & Development. The changes in priorities are on customers' values and purpose interaction and time to market reduction.
Francisco Rácz & Washington Yamaga (RY & Associates) American Coatings Show Daily3 – April 2018
The year of 2017 represented a turning point for the Brazil coatings market development. After several years of recession, the reduction of unemployment and the reaction of consumer reflected as an interruption of continuous fall of the decorative coatings market and other materials related to the home improvement, maintenance and even some new constructions.
Francisco Rácz & Washington Yamaga (R & Y & Associates) - Paint & Painting April 2018
The annual volume growth in the period will show rates of 3.4% to 12% in the period 2017-2022. The revenues of paint industry in these segments reached about US $ 1.9 billion in 2017 and may go beyond 3, 1 B US $ in 2022, representing 44% of the total paint market in Brazil.
Francisco Rácz & Washington Yamaga (RY & Associates) - Paint & Pintura March 2018
More than the expectation of a political threshold for the resumption of growth industries must decide on their competitiveness.
TIME FOR EVOLUTIONARY CHANGE?
The South American automotive refinishing market remains attractive
The strong need for mobility in a continent with huge distances for a growing middle class is the major driving force for this market. South American countries will continue to show a growth in their car park. Regardless hiccups in several countries’ economies the need for mobility drives the growth of the fleet back to their long-range projections. Response came from automakers’ globalization strategy through flexible value onboard platform adaptable to any part of world. Color and repair services are part of this challenge as it is related to auto protection and glamour.
European Coatings Journal - Autommtive Coatings Dossie
Rácz, Yamaga & Associates
Racz, Yamaga & Associates present in the 2017 European Coatings Journal Dossier – Automotive Coatings, a selection of best technical paper published within past 3 years by ECJ.