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The Exterior Paints market in Europe dropped by -5.8% in value. Interconnection Consulting predicts a larger decline of -7.5% in 2024.

According to a recent study by Interconnection Consulting, the market experienced a decline of 5.8%% in 2023, following a previous stagnation 0.4% recorded the year before. This downturn can be attributed to various factors, including market instability and lack of new construction projects, resulting in a decrease in the total number of liter of paints sold from 2.187 Mio. to 2.177 Mio. in analysed countries (Germany, Slovakia, Italy, Czech Republic, Austria, France, Spain, Poland).

The majority of doors, 68.8%, were sold in the Residential segment. However, even this segment saw a decrease in quantity of around 6.1% in 2023 compared to the previous year, with an overall market decrease of 0.5%. Pessimism continues to insist in 2024, with building forecasts for residential averaging -9.0%, which is more affected than the non-residential segment, averaging -4.2%, but with significant differences among countries.

Italy’s development could only be impromptu

In terms of growth rates, Italy and Poland performed best. The former recorded the highest value growth in the study (+12.7%). The effects of the Superbonus are still being felt, but these will dry up in the coming years as they have been reduced by the Italian government. Historically, they have gone from the initial 110 to 90 in 2022 and finally to 70 in 2023. From 2025, this measure will no longer exist, and the renovation market in Italy will grow more slowly in turn. Poland grew in value by 10.6% compared to 2022. This result is heavily influenced by the high inflation existing in the country. Despite its average prices being lower than those of Central European countries, the rate in quantity remains almost unchanged (+1.4%). Meanwhile, the largest decline was recorded in Austria, at -13.3% last year.

The structure of demand could change in the coming years: acrylic paints will dominate southern Europe

Emulsion Paints dominate the market as the most popular bonding agent used for exterior paints, with a market share of 34.5% in quantity. It is important to note that emulsion paints will lose share in the next few years, giving more protagonism to acrylic based paints. Italy and Spain have particularly acrylic paints of over 45% – mostly due to regulations, requirements of their usage in the residential segment and price convenience. Overall, silicone resin-based paints are also very popular in certain residential projects due to its high resistance to external phenomena. Silicone-resin paints have achieved nearly 30% of the total market in quantity.

Among the leading silicone-resin manufacturers in the analysed countries, notable names include AkzoNobel, Baumit, Brillux, Caparol, Meffert, PPG, Prosol, Unikalo, Weber, listed alphabetically.

01/07/2024

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.