Seminars & publications
November 2023
South American coatings market on track to hit $11 Billion by 2027
Francisco Racz and Washington Yamaga for European Coatings Journal during Abrafati 2023
The South American coatings market is poised to reach $11 billion by 2027, with an annual growth rate in physical volume of 2.5% during the five-year period starting in 2022. Dominant drivers encompass the overarching themes influencing the growth of the Construction & Infrastructure Coatings and Performance Coatings businesses in South America. These themes include Infrastructure Development and Economic Growth, Environmental Sustainability, Regulatory Compliance, Maintenance, Refurbishment, as well as the evolution of Consumer Preferences.
December 2023
Purchasing Power and Paint Consumption in South America
Francisco Rácz & Washington Yamaga – R&Y Associates for Paint&Pintura December 2023
The most striking and significant driving force in the paint market of a country stems from the purchasing power of the middle class, directly influencing paints used in construction, infrastructure, home maintenance, automotive maintenance, and various other applications of painted items. A relevant and crucial analysis lies in the relationship between purchasing power expressed by the Gross Domestic Product, indexed to local purchasing power in dollars (US$ 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.
June 2020
IN DIFFICULT TIMES, INNOVATION HAS A SET TIME
Francisco Z. Rácz & Washington T. Yamaga - R Y & Associates for Paint & Pintura June 2020
All crises bring scars before defining themselves as drivers. The 2008 crisis taught the concept of risk in the real estate businesses to a group of people and enterprises. The 2020 crisis affects all of us individually in the capacity to react, defend and work. Mobility as previously conceptualized will change the housing industry, the transport industry, health and social life. New parameters will certainly be reflected in coatings and their brands in order to be socially sustainable.
The coatings businesses will be challenged on its knowledge and creativity, pressured exponentially for new solutions. The drastic reduction in “time to market” will clearly be a survival condition.
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.
September 2020
HOW WILL COATINGS IN BRAZIL RECAPTURE VALUE?
Francisco Z. Rácz & Washington T. Yamaga - R Y & Associates for Paint & Pintura September 2020
Months after the beginning of our coexistence with pandemic, the paint industry is already experiencing a resumption of business, especially in the areas of architectural coatings and segments such as packaging, automotive refinishing, industrial maintenance, justified by demand and other leverages in economy. However, business definitions for 2021 and beyond are also intensified. Diversified productivity priorities and business consolidations are the most discussed topics.
April 2020
THE ROADMAP OF VALUE STRATEGIES IN COATINGS
Francisco Z. Rácz & Washington T. Yamaga (R Y & Associates) for Paint & Pintura April 2020
In the recent Forums of Paint & Pintura Coatings Magazine, in particular the one held in last March in Fortaleza, we presented the paths of added value in coatings. A discussion on the need to manage contribution margins through the product offering appreciation and an appropriate pricing policy.
The repercussion of this discussion in the new pandemic times reinforces the urgency to implement sustainable practices to protect business values and also to reduce business risks.
July 2024
2023 – 2028 South America Coatings
Revisiting the Drivers of the Transition
In recent years, the persistence of tensions and risks for the paint sector has resulted in a change in the sense of urgency and priorities. Resiliently, geopolitical incidents, cost impacts, increasing difficulties in accessing raw materials due to demand fluctuations, environmental accidents, and other factors are being overcome. This edition's bulletin highlights the effects of the polarized global geopolitical escalation, predominant and without an end date. Paint and input producing countries in South America are preparing for an accelerated and sustainable transition. Countries are quickly learning that they can have stature in this transition by adding value and solutions, even when reacting at different times.
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.
Agosto 2020
WHAT CHANGES COME TO STAY?
Francisco Z. Rácz & Washington T. Yamaga - R Y & Associates for Paint & Painting July 2020
The 100-day resumption plan has certainly been revisited in terms of concepts and expectations numerous times. We quickly concluded that the crisis is going to be long, different and unprecedented.
The article brings reflections that before increasing sales, it is necessary to gain consumer confidence. All companies have established their crisis committees and are now looking for other smart and resilient decisions, reconfiguring their resources to survive.
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.