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Decorative paints industry expects correction after successful 2020

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The paint industry has reasons to be satisfied. The value of sales of decorative paints – which constitute the largest market segment – increased y-o-y by 6.2%, to over PLN 2.33 billion in 2020*. The growth rate was thus higher compared to 2019, when it was 4.3%. During the first lockdown, Poles were eager to start renovations. The second quarter of 2020 measured y/y was up by as much as 14%. The volume of paint sold measured in litres also increased – by 3.4% in 2020 (-1.6% in 2019). At the same time, the trend of increasing premiumisation and margins of decorative paints continues.

The performance of the decorative paints industry in Poland in 2020 was affected by two concurrent factors. First – during the lockdown, Poles were more likely to decide to renovate their flats and houses. Secondly – the government’s decision to keep DIY stores open made it possible to make the necessary purchases. And it was DIY (do-it-yourself) products that sold the best. At the same time, it should be noted that despite the turmoil in the overall market, the pandemic had relatively little impact on the construction industry. In contrast, the industrial and automotive paint categories experienced problems.

2021 and beyond may prove to be a challenge for decorative paints. We expect a correction. Last year, the closure of houses accelerated decisions about renovations, this year it is not likely to be so – comments Bartłomiej Ślązak, managing director of PZPFiK. So perhaps the volume will fall, but I think that the trend of premiumization, i.e. buying products from the higher shelf, will be maintained. So quantitatively we can expect a decrease, but in terms of value – an increase – he adds.

Value of decorative paints sold in Poland between 2014 and 2020

 PZPFiK estimates

*Data taken from a sell-in research panel carried out by PZPFiK and GFK Polonia.

Source: PZPFiK

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