The paint market - Portugal

This market is closely linked to the economic health of different sectors. For example, levels of activity in the coatings or decorative paint segments are closely linked to the real estate and construction sectors, while the economic performance of the automotive sector directly influences the demand for industrial paints. The world paint market is growing rapidly, notably thanks to the Asian continent. This growth is also explained by the increase in construction spending or the growth of the automotive sector. It is also necessary to include socio-economic factors, such as the continuing increase in urban population or, in general, the increase in life expectancy. Paint manufacturers regularly innovate in the composition of their paints and offer new uses other than the simple function of coating. For example, there are fire-resistant paints, chalk paints or insulating paints on the market. And due to growing environmental awareness, manufacturers in the market must develop new products that are more environmentally friendly or free of volatile organic compounds. The paint market in Portugal represents less than 1% of the gross value added. The sector is mainly made up of small companies, although concentration has increased in recent years. The sector continues to have its most important market segment in construction, whether through the construction of new housing estates or urban renewal. In 2019 alone, production in construction increased by 4%, with more than 2,000 operations underway, generating between 20,000 and 30,000 jobs in the country. In addition, a regulation for urban rehabilitation and revitalization (IFRRU 2020) has already concluded more than 203 new urban revitalization contracts, which include new paints for old spaces, for a total of more than 1,400 million euros of investments . These factors, together with the substantial growth of the Portuguese economy, should stimulate demand in the coming years.