Paints and varnishes market analysis
Paints and varnishes are used in finishing work. They can decorate and protect walls, façades and furniture. Some are used, for example, in the automotive industry. MarketHub's analysis of the paints and varnishes market shows how the market is developing and who currently leads it.
The paints and coatings market is diverse. It covers products for wood, metal and walls. They can be used by individual customers or by industry. They differ in composition and characteristics. Globally, the industry leaders are Akzo Nobel, Sherwin-Williams and PPG. The paints and varnishes market is subject to seasonal fluctuations. Sales naturally rise during the renovation season, as people can do many minor finishing jobs themselves. Painting walls is a simple task, so many people save money by doing it themselves. The products themselves are increasingly user-friendly and have a variety of properties. Examples include chalkboard paints, stain-resistant paints, paints for exterior use and pure pigments for mixing at home.
How big is the market for natural water-based paints?
According to analysts, the water-based paints market will exceed USD 90 bn in 2024, and in Western countries demand is growing most for natural, lead-free water-based paints.
In Western countries, demand is growing most for natural, lead-free water-based paints. According to analysts, the value of the water-based paints market will exceed USD 90 bn in 2024. Because of the advantages of this type of paint, demand for it is rising in the architectural sector. Annual growth of 5.5% is forecast for the period analysed, so by 2024 this market will be worth USD 85 bn. The reason is greater consumer awareness and the requirements that manufacturers must meet. Despite the restrictions resulting from concern for the natural environment, we are buying more and more products of this type. Being "eco" is even fashionable. Companies prefer to comply with standards on production and composition rather than shut themselves off from the markets of developed countries. For example, Axalta was named among Newsweek's America’s Most Responsible Companies in 2022 and achieved sustainability benefits for 80% of its new technologies and products. During the pandemic, we also paid more attention to our immediate surroundings and did more renovations. Remote work meant we paid more attention to our interiors. Inflation has made us prefer to do minor finishing jobs, such as painting, ourselves. This, too, is driving some segments of the market. In Poland, for example, Śnieżka is reporting strong profits. And what about Europe?
Who leads the paint market in Europe?
The Dutch company Akzo Nobel leads the European paint market with EUR 10.846 bn, while as many as 11 of the leading European paint companies are headquartered in Germany.
As many as 11 of the leading European paint companies are headquartered in Germany. One of them, the Altana Group, announced the acquisition of Imaginant, a US company that makes ultrasonic measuring tools. These tools allow full control over the quality and thickness of the coating. The European ranking of paint manufacturers also includes a Polish company. Śnieżka closes the top 25 with EUR 158 m, down slightly from EUR 161 m a year earlier. This may be due to the current situation in the housing market and inflation. Decision-makers forecast a further decline in volumes. By comparison, the Dutch company Akzo Nobel recorded EUR 10.846 bn, making it the leader in Europe. It therefore looks as if we are at a stage of slow but stable growth in the domestic market, although Europe as a whole expects volumes to fall.
How big is the paint market in Poland?
According to data from the Polish Association of Paint and Adhesive Manufacturers (PZPFiK), paint sales in Poland total more than PLN 5 bn. Decorative paints account for 40% of this. In other words, there is demand simply for clean, neat, freshly painted interiors. In Poland, Śnieżka, whose products meet the needs of individual customers, is recording strong growth. Its main market is, of course, Poland. Polish consumers value the composition and durability of this manufacturer's paints. Brand awareness is also very high. Globally, Śnieżka ranks 59th with revenue of 202,000,000. This is a very good result, despite a slight decline. The company's management also welcomed it, stressing that it was achieved in difficult market conditions. In the first three months of 2023 the group achieved operating profit of PLN 27.5 m (up 54.5% year on year), EBITDA of PLN 37.5 m (up 40.6% year on year) and consolidated net profit of PLN 17.2 m (up 43.9% year on year). The Polish market is the most important one for Śnieżka, and it is where the company makes its profits. It is doing worse in Hungary. There, the group's revenue in Q1 of this year was PLN 27.1 m, a decrease of PLN 7.6 m (21.8% year on year). Deliveries to Ukraine have been suspended. The manufacturer expects volumes to fall, although the domestic market is still growing. In other words, fewer litres are sold, but profits are still being made. Inflation is, of course, to blame. The company's owners are therefore closely watching eastern markets in search of new customers. Will the rebound begin there after the war in Ukraine?
| Indicator | Value (PLN m) | Change year on year |
|---|---|---|
| Operating profit | 27.5 | +54.5% |
| EBITDA | 37.5 | +40.6% |
| Consolidated net profit | 17.2 | +43.9% |
| Revenue in Hungary | 27.1 | down PLN 7.6 m (21.8%) |
What is the outlook for the paints and varnishes market in Poland?
The paints and varnishes market in Poland will continue to grow slightly, especially in water-based paints, and forecasts say the paints and coatings market will reach USD 212 bn by 2026.
Despite the constraints related to the war in Ukraine and stricter environmental regulations, the paints and varnishes market in Poland is growing slightly and will continue to do so, especially in the private sector and in the water-based paints segment. This is a great opportunity for companies that want to invest in environmentally friendly solutions, including in Asia-Pacific. For example, BASF and Huntsman already make their products in China independently. According to forecasts, the paints and coatings market will reach USD 212 bn by 2026. That means growth of about 3%. This market is well worth watching, even though in Europe we can expect declines related to inflation. Time will tell whether manufacturers will cope with changing market conditions.
Author: Katarzyna Pokrywczyńska
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This text is not a full market analysis of the kind we carry out for our clients. It contains only selected information about the market, which we can expand on request.
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