Latin America Joint Compound Market Growth – Trends & Forecast 2023-2033

Latin America Joint Compound Industry Outlook from 2023 to 2033

The Latin American joint compound industry size reached USD 46.0 million in 2022. Over the forecast period, joint compound demand in Latin America is anticipated to rise at a 6.3% CAGR. The industry is projected to increase from USD 48.6 million in 2023 to USD 89.5 million in 2033.

Attributes	Key Insights
Base Value (2022)	USD 46.0 million
Estimated Latin America Joint Compound Industry Size (2023)	USD 48.6 million
Projected Latin America Joint Compound Revenue (2033)	USD 89.5 million
Value-based CAGR (2023 to 2033)	6.3%

Key Latin America Joint Compound Industry Highlights

Industry to Expand Over 2.1x through 2033

Latin America's joint compound industry is projected to expand by over 2.1 times through 2033, driven by a 5.1% increase in expected CAGR compared to the historical rate. This is due to the growing demand for construction and infrastructure development. By 2033, the total industry revenue is set to reach USD 89.5 million.

Brazil to Lead Latin America Joint Compound Industry

Brazil is expected to dominate the joint compound industry during the forecast period. It is set to hold around 27.4% of Latin America’s industry share in 2033. This is attributed to the following factors:

• Rising Demand for New Institutional Projects: Several infrastructure projects have been announced in Brazil. These projects aim to expand their range of road marking paints and coatings. As the ready-to-mix type joint compound is employed in developing infrastructures, Brazil is expected to rise through the forecast period.
• Rising Demand for Construction: Urbanization continues to surge infrastructure spending, driven by changing living standards, and in turn, is expanding the population's need for affordable housing and refurbishment.
• Growing Research and Development: Several players across Latin America are adapting emerging business models to expand their regional footprint and industry share. Collaboration activities enable industry players to ensure growth in the ever-competitive sector. Key players are focusing on research and development activities to create new and advanced compounds that fulfill the increasing needs of consumers.

Based on End-use, Residential Construction is Grabbing the Opportunity

The residential construction segment is expected to dominate Latin America’s joint compound industry with a volume share of 44.7% in 2023. Residential construction is expected to remain the key end-use sector for joint compounds in the region, owing to the significant scope of high consumption from the renovation sector.

Historical Latin America Joint Compound Industry Outlook Vs. 2023 to 2033

Joint compound sales in Latin America grew at a CAGR of 1.2% between 2018 and 2022. The industry reached USD 46.0 million in 2022. During the forecast period, the joint compound industry is expected to grow at a CAGR of 6.3%.

Historical CAGR (2018 to 2022)	1.2%
Forecast CAGR (2023 to 2033)	6.3%

The joint compound industry witnessed moderate growth between 2018 and 2022. This was due to economic growth in emerging industries leading to increased construction and infrastructure development.

The COVID-19 pandemic has had a negative impact on several industries, including the joint compound sector, in terms of supply and demand. The pandemic disrupted the supply chains, leading to shortages of raw materials and finished goods. This, in turn, led to a shortage of joint compounds. The pandemic further reduced the demand for joint compounds as the construction industry slowed down due to lockdowns and restrictions.

Future Scope of the Latin America Joint Compound Industry

Over the forecast period, Latin America’s joint compound industry is poised to exhibit healthy growth, reaching a valuation of USD 89.5 million by 2033. The construction industry is expected to showcase growth stability primarily due to rising urbanization in emerging countries across Latin America.

The resurgence of the construction industry in Latin America, along with notable growth and prospects for new construction in developing and emerging economies, is expected to drive the industry forward. This is set to create a high demand for joint compounds in Latin America.

The ready-mix type of joint compound is expected to dominate the market in terms of product type throughout the forecast period. A ready-mix joint compound is designed for fast application. It has easy maintenance, spreads smoothly, and dries up if left unattended for a long period.

Government investments in infrastructure projects, such as roads, bridges, and public buildings, are further expected to amplify the demand for joint compounds. The construction boom associated with urbanization positions joint compound manufacturers at the forefront, shaping the urban landscape in Latin America. These factors are expected to surge the demand for joint compounds by 2033.

Latin America Joint Compound Industry Trends

• Across Latin America, the building sector is placing an increasing amount of attention on sustainability. The joint compound industry in Latin America is driven by a demand for sustainable and eco-friendly products, particularly those with low volatile organic compound (VOC) formulations.
• Construction activity is increasing in tandem with the ongoing urbanization in several countries of Latin America. Roads, bridges, commercial buildings, and other infrastructure development projects are increasing the demand for building supplies, such as joint compounds.
• As the economy expands, the renovation and remodeling industry experiences high growth. Existing structures are frequently upgraded by firms and homeowners, presenting opportunities for the joint compound industry to supply materials for these projects.
• The joint compound industry is investing in research and development to provide products with greater adhesion, faster drying times, and improved environmental features.

Key Factors Restraining Latin America's Joint Compound Industry Growth

• Changes in the region's economy are expected to impact the building sector and demand for joint compounds. The expansion of the joint compound industry is expected to be limited by economic downturns, resulting from decreased investment in infrastructure projects and building activity.
• The price of raw materials is expected to fluctuate due to changes in exchange rates, which can impact the cost of manufacturing joint compounds. Manufacturers are expected to have difficulties and price uncertainty, particularly if they depend on imported supplies.
• Shortages of raw materials or delays in the production process can result from supply chain disruptions caused by natural disasters, geopolitical events, or other factors. The manufacturing and accessibility of joint compounds in the industry are set to be impacted by such interruptions.

Country-wise Insights

The table below shows the estimated growth rates of the top five countries. Mexico, Colombia, and Peru are set to record high CAGRs of 7.3%, 6.9%, and 6.6%, respectively, through 2033.

Countries	Projected Joint Compound CAGR (2023 to 2033)
Brazil	4.6%
Mexico	7.3%
Colombia	6.9%
Argentina	5.4%
Peru	6.6%

Booming Construction Sector to Boost Sales of Joint Compounds in Brazil

Over the assessment period, demand for joint compounds in Brazil is projected to rise at a 4.6% compound annual growth rate (CAGR). Here are the trends enhancing the industry in Brazil:

• Brazil boasts a substantial and continually growing construction sector, driven by the advancement of infrastructure, residential developments, and commercial buildings. The state of the construction industry as a whole has a direct impact on the demand for joint compounds.
• Brazil's urbanization tendencies increase the country's need for infrastructure and housing. There are opportunities for joint compound use in drywall applications due to the demand for residential and commercial structures.
• The Brazilian government initiated infrastructure projects to stimulate economic growth. The need for joint compounds and other building materials is expected to be driven by large-scale projects in the energy, transportation, and public facilities sectors.

Increasing Sustainable Construction Techniques Spurring Growth in Mexico

Over the forecast period, the joint compound industry in Mexico is expected to grow at a robust compound annual growth rate (CAGR) of 7.3%. A handful of the trends are as follows:

• In Mexico, there is a growing emphasis on ecologically friendly building techniques and sustainability. Manufacturers of joint compounds are producing goods with reduced environmental impact.
• Mexico's joint compound industry is likely to be competitive with both domestic and foreign producers. To preserve or increase their share, companies are investing in marketing to distinguish their products and offer competitive pricing.
• Implementing advancements in joint compound formulation and modern production technology is enhancing product quality and performance. Research and development spending by manufacturers is helping them gain a competitive edge.

Colombia to Remain at the Epicentre of Joint Compound Manufacturing

By 2033, the demand for joint compound in Colombia is expected to surge at a CAGR of 6.9%. A handful of the factors are as follows:

• Colombia's economic circumstances is influencing the joint compound sector as well as the building industry. Interest rates, inflation, and GDP growth are among the key variables that affect construction project investments.
• In the construction sector, compliance with building standards and regulations is essential in Colombia. Modifications to environmental regulations or the introduction of new regulatory criteria are influencing the manufacturing and usage of joint compound.

Category-wise Insights

The section below shows the ready mix segment dominating based on product type. It is forecast to thrive at a 6.5% CAGR between 2023 and 2033. Based on application, the new construction segment is anticipated to hold a dominant share through 2033. It is set to exhibit a CAGR of 6.6% during the forecast period.

Ready Mix to Exhibit Exponential Demand in Latin America

Top Segment (Product Type)	Ready Mix
Predicted CAGR (2023 to 2033)	6.5%

Convenience is a key benefit of ready-mix joint compounds. They save building time and effort by eliminating the need for on-site mixing. By using these chemicals directly, contractors can reduce labor-intensive preparatory work.

Ready-mix joint compounds are produced in a controlled environment to provide a reliable and homogeneous result. This uniformity plays a crucial role in the joint compound's dependability in terms of workability, drying properties, and adhesion.

Ready mix joint compounds come in a range of formulas to suit different requirements. They can be divided into groups according to how quickly they dry, such as lightweight or quick-setting compounds.

As these materials are so versatile, contractors select this ideal compound for several applications. Over the forecast period, the ready-mix segment is expected to grow at a CAGR of 6.5%.

Demand for Joint Compounds to Remain High in New Construction Application

Top Segment (Application)	New Construction
Projected CAGR (2023 to 2033)	6.6%

To eliminate significant gaps and create a seamless look, a joint compound is applied over joint tapes to produce a smooth, continuous surface. In new construction, drywall surfaces sometimes need to be repaired due to dents, nicks, or other flaws.

The surfaces are patched and repaired with joint compounds. Joint compound is widely used in new construction due to its adaptability, cost-effectiveness, and versatility. The new construction segment is projected to grow at a 6.6% compound annual growth rate (CAGR) during the forecast period.

Competitive Landscape

The joint compound industry in Latin America is highly consolidated, with leading players accounting for 35.1% share. Companies such as de Saint-Gobain S.A., USG Corporation, Knauf, Dryvitex, Supermastick S.A.S., Durlock, and ProForm Finishing Products LLC are the leading manufacturers and suppliers of joint compounds listed in the report.

Key joint compound companies are investing in ongoing research to develop new products and expand their capacity to meet end-user demand. They are also inclined to adopt strategies that strengthen their footprint, including acquisitions, partnerships, mergers, and facility expansions.

Leading Companies

• USG Corporation: With cutting-edge technology and design, USG provides high-performance construction systems and solutions for interior walls, facades, ceilings, and floor levelers. Energy economy, safety, improved seismic performance, fire resistance, and longevity are all guaranteed when working with USG on any project.
• Cemix: The company offers innovative solutions that simplify the building process. In wall covering, waterproofing, maintenance, repair, concrete painting, and the installation of ceramic and marble applications, Cemix is a significant participant in Latin America.

Scope of the Report

Attribute	Details
Estimated Value (2023)	USD 48.6 million
Projected Value (2033)	USD 89.5 million
Anticipated Growth Rate (2023 to 2033)	6.3%
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Value (USD million) and Volume (metric tons)
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Product Type, End-use, Application, Region
Key Countries Covered	Argentina, Brazil, Mexico, Chile, Colombia, Peru, Ecuador, Paraguay, Uruguay, Guatemala, Bolivia, Costa Rica, Rest of Latin America
Key Companies Profiled	Compagnie de Saint-Gobain S.A; USG Corporation; Knuaf, Dryvitex; Supermastick S.A.S, Durlock; Votorantim Cimentos; Plaka Group; ASG Plaster; Cemix Mexico S.A. DE C.V; Promat, Gyplac; DAP Products Inc.; Solid Products, Inc.; ProForm Finishing Products LLC

Table of Content

• 1. Executive Summary
• 2. Industry Overview
• 3. Key Trends
• 4. Key Success Factors
• 5. Latin America Industry Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033
• 6. Latin America Industry - Pricing Analysis
• 7. Latin America Industry Demand (in Value or Size in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033
• 8. Industry Background
• 9. Latin America Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type
  • 9.1. Ready Mix
  • 9.2. Setting Type
  • 9.3. Drying Type
• 10. Latin America Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use
  • 10.1. Residential Construction
  • 10.2. Commercial Construction
  • 10.3. Institutional Construction
  • 10.4. Industrial Construction
• 11. Latin America Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
  • 11.1. New Construction
  • 11.2. Refurbishments
• 12. Latin America Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12.1. Argentina
  • 12.2. Brazil
  • 12.3. Mexico
  • 12.4. Chile
  • 12.5. Colombia
  • 12.6. Peru
  • 12.7. Ecuador
  • 12.8. Paraguay
  • 12.9. Uruguay
  • 12.10. Guatemala
  • 12.11. Bolivia
  • 12.12. Costa Rica
• 13. Argentina Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 14. Brazil Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 15. Mexico Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 16. Chile Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 17. Colombia Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 18. Peru Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 19. Ecuador Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 20. Paraguay Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 21. Uruguay Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 22. Guatemala Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 23. Bolivia Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 24. Costa Rica Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 25. Rest of Latin America Industry Analysis 2018 to 2022 and Forecast 2023 to 2033
• 26. Industry Structure Analysis
• 27. Competition Analysis
  • 27.1. Compagnie de Saint-Gobain S.A
  • 27.2. USG Corporation
  • 27.3. Knauf
  • 27.4. Dryvitex
  • 27.5. Supermastick S.A.S
  • 27.6. Durlock
  • 27.7. Votorantim Cimentos
  • 27.8. Plaka Group
  • 27.9. ASG Plaster
  • 27.10. Cemix Mexico S.A. DE C.V
  • 27.11. Promat
  • 27.12. Gyplac
  • 27.13. DAP Products Inc.
  • 27.14. Solid Products, Inc.
  • 27.15. ProForm Finishing Products, LLC
• 28. Primary Insights
• 29. Assumptions and Acronyms Used
• 30. Research Methodology