The paint market - France (2024)

1.2 A growing global market

The global paint and coatings market is growing worldwide. In ****, the market was valued at $***.* billion, up *.*% on ****. The market is expected to grow at a CAGR of *.*%, reaching ***.* billion in ****.

Sales trends in the global paint market World, **** - ****, in billions of USD Source: ****

The market is driven in particular by the dynamism of certain regions, especially the Asia-Pacific zone, and by the good health of end-use sectors such as construction. In addition, growing urbanization and rising living standards have stimulated demand for decorative paints in recent years.

Another trend driving market growth is innovation in the sector, notably due to burgeoning environmental regulations, which are driving paint manufacturers to invest in R&D to develop more environmentally-friendly paints. Many other innovations are also driving growth, such as paints that are easier for homeowners to apply, or paints that can control temperature and heat transfer in a wide range of geographical and climatic conditions. [***]

1.3 The French market: new momentum

In an article published in January **** by LSA Conso, the French paint market reported sales of €*** million in ****, down *.*% in value and *.*% in volume.

After * years of sales erosion, the Covid-** epidemic nonetheless benefited the paint sector, marking its return to growth. The French took advantage of the increased time spent at home due to confinement to improve their homes.

Paint sales are expected to grow by around **% in ****[***]. Applying these variations to the **** sales figures provided by LSA Conso, it is then possible to estimate paint market sales at *.*** billion euros in ****.

In ****, the Fédération des Industries des peintures, encres, couleurs, colles et adhésifs (***), estimates sales volume at *.* billion euros.

Decorative paint market size France, ****-****, in millions of euros Source: ****

More specifically, within the paint market, exterior paints and coatings saw the strongest growth in **** compared to ****.

Change in paint market sales by value France, **** - ****, in Source: ****

The short-term outlook for the paint market is difficult to assess. Nevertheless, a downturn in new building construction could have a negative impact on the market. Indeed, the Fédération Française du Bâtiment forecasts a net decline in building permits (***), is therefore likely to slow ...

1.4 The impact of Covid-19 and reaction to the crisis

The positive impact on DIY superstores

A more detailed Businesscoot study dedicated entirely to DIY is available here. It seems that the sector, which suffered from the months without activity due to the containment, nevertheless made up for lost time in the summer months, which was confirmed by an explosion in paint sales that put an end to three years of declining sales in the department. The containment revived consumer interest in DIY, and consumption increased in the months following the containment.

Monthly activity index for DIY superstores France, ****, in Source: ****

So, while March and April **** respectively recorded sales **.*% and **.*% lower than the same months in ****, the recovery was felt over the following four months with a return to double-digit growth.

Thus, in ****, sales generated by the DIY sector were up **% on ****, representing nearly ** billion euros after several sluggish years since the **** crisis.

Painting work on the rebound

Insee also provides a comparison of sales index trends for activities registered under NAF code **.**Z: Painting and glazing work.

sales index trends for painting and glazing activities France, October **** - September ****, index *** in **** Source: ****

Sales by professionals suffered from the months of confinement that saw some worksites come to a halt. In ...

1.5 International paint trade

The paint trade is recorded in the French customs register under code ****: Paints, varnishes and similar coatings.

It can be seen that France's trade balance in this sector is in surplus over these five years, although the balance is narrowing over time: in ****, France had a surplus of **,*** euros, it is now only *** million euros, while in **** it is only ** million euros. Indeed, imports grew by **% between **** and ****, while exports grew by only **%.

By ****, the year of covid-**, French exports and imports had fallen by *.*% and *.*% respectively compared with ****.

Foreign trade in paint France, ****/****, in Source: ****

The main customer countries for French paint production plants include Germany (***). Most paint exports are thus destined for European Union countries.

Paint manufacturers' main customer countries France, ****, in Source: ****

In addition, French paint imports come mainly from Germany (***).

Main paint-supplying countries France, ****, in Source: ****

2.1 Demand by product type: white paints top the list

Paint is one of the most popular DIY products. According to a survey carried out by LSA - conso en ****, **% of the **** individuals questioned had bought paint in the last ** months.

Most purchased DIY products France, ****, in Source: ****

Also, as shown in the graph below, painting comes in *st place when French people are asked which jobs they feel most empowered to do. In *nd place come tiling, electricity, plastering/partitioning and masonry, with percentages varying between**%and**%depending on the type of work and gender. Overall, men and women show similar rates of autonomy, except for electricity, where the difference between the two is more marked.

Top * jobs for which the French feel autonomous France, ****, % of total Source: ****

Demand for paint differs according to product type. The French seem to be most fond of paints and varnishes for aqueous media, since they will account for almost half of French production in ****. They are followed by paints and varnishes for non-aqueous media, then coatings, pigments and opacifiers.

Breakdown of paint market sales by product type France, ****, in millions of euros Source: ****

2.2 Renovation maintenance: business volume and household spending

Business volume

The Fédération Française du Bâtiment reports annual variations in the volume of maintenance-renovation activity. While activity has been relatively stable in recent years, there have been sharp variations from **** onwards. While business volume fell by *.*% in ****, it picked up again from **** onwards, exceeding **** levels by ****.

Annual variation in maintenance-renovation business volume France, ****-****, in Source: ****

Household spending

Household spending rose by *.*% in **** to **.* billion euros for maintenance-improvement work. [***]. After a slight drop in **** following the Covid, the market will grow by **% in ****, then by **% in ****. Since ****, this market has seen very strong growth, of **%, as illustrated in the graph below:

Household spending on home maintenance and renovation France, ****-****, in millions of euros Source: ****

Several factors can explain this growth over the past decade. On the one hand, the number of existing home transactions has risen steadily in recent years (***)[***], contributing to the development of the renovation and maintenance market.

What's more, a number of government subsidies have been developed in recent years to contribute to the energy renovation of buildings, such as the Crédit d'Impôt pour la Transition Energétique (***), the *.*% VAT rate for energy-improvement work, and the zero-rate eco-loan.[***]

In addition, ...

2.3 Demand in the construction market

Housing demand

In ****, more than ***,*** housing units were started, representing an increase of *.*% on ****, but a decrease of *.*% on ****. Indeed, **** saw a drop in the number of housing starts due to the health crisis. Despite a rebound in ****, we can nevertheless note that the number of housing starts has been falling steadily since ****, and that the downward trend is likely to continue.

Housing starts France, ****-****, in thousands Source: ****

The chart below shows the breakdown of housing starts in **** by category. Multi-family units will account for nearly two out of every * new housing starts (***), while grouped and dispersed single-family units together will represent nearly **%. Residential units will account for **% of new housing starts in ****.

Breakdown of housing starts by category France, ****, in Source: ****

Work most frequently carried out

Finally, the CSA reports on the type of work carried out on housing units.

Type of work carried out on homes France, ****, in Source: ****

Walls are by far the main focus of work. This is rather encouraging for the paint market and ensures a solid demand for paint, as long as the demand for work is maintained.

In ****, many French people have improved their homes, mainly through work on their bathrooms (***) is one ...

3.1 Paint market structure

Paint manufacturing

Paint manufacturing companies are relatively few in number (***), and the sector seems to be facing increasing concentration. In ****, the sector counted *** companies and over **,*** employees, compared with *** companies and **,*** employees in ****, i.e. an average of around ** employees per company.

Number of companies and employees registered under code **.** Manufacture of paints, varnishes, inks and mastics France, ****-****, in thousands Source: ****

Painting work

The painting market is characterized by its atomicity. In ****, URSSAF recorded **,*** companies and **,*** employees. **% of companies in the sector are in fact individual craftsmen. [***]

Number of companies and number of employees registered under NAF code **.**Z painting and glazing work France, ****-****, in units Source: ****

3.2 Paint in the DIY market

In ****, the French DIY market is estimated at ** billion euros. The DIY market has been growing slowly for several years, but **** proved particularly positive, with a growth rate of *.*% compared to ****, and the years **** and **** confirmed this dynamic. French DIY market size France, ****-****, in billions of euros Source: Sdp pro The chart below illustrates the exact rates of change in sales in the DIY market, and thus describes market trends more precisely. French DIY market trends France, ****-****, in Source: Fédération des magasins de bricolage The DIY market grew by *.*% in **** compared to **** and by **% in ****, the strongest annual increase in ten years. Penalized by the **** crisis and the sluggishness of the construction market, which began to recover around ****, the DIY market's dynamism remained limited, before finally returning to more substantial growth, as evidenced by the performances in **** and ****. These performances were consolidated in **** (***), during the health crisis. In ****, growth slowed. This growth was driven by several factors, including the upturn in the construction sector, with record sales of existing homes in ****, and the French craze for "do-it-yourself" solutions.

According to the latest available data, dating from ****, the paint, drugstore and glue segment accounts for around **% of DIY ...

3.3 The main players

Manufacturing players Major paint manufacturers include Sherwin Williams (***), Luxens, V**, Farrow&Ball, Unikalo and Guittet. The Dulux Valentine brand has a **% market share in the DIY superstore channel. [***] Distribution players The distribution of DIY products, among which paint manufacturers play a major role, is mainly handled by DIY superstores, which alone account for **% of the value of DIY product sales[***]. Sales of home decoration products by distribution channel France, ****, in Source: ****

3.4 Focus on DIY superstores

Do-it-yourself superstores account for almost three-quarters of sales of do-it-yourself products, giving them a strong hold on the market.

Breakdown of DIY sales by distribution channel France, ****, in Source: Federation of DIY stores it should be noted that DIY store chains operate in two ways in the consumer DIY market: through a DIY store chain, like the SAMSE and Cofaq groups, or by opening up their network of stores to private customers, like Point P, Gedimat or BigMat. What's more, in ****, with the health crisis, online DIY stores will be the most dynamic distribution channel (***). In ****, online DIY outlets will continue this trend, with growth well ahead of other distribution channels. By contrast, GSB in-store sales, affected by store closures during the health crisis, are up by only *% in ****, and **% in ****. Change in sales by distribution channel in the DIY market France, ****, in Source: ****

The chart below details the market shares of the DIY chains. Leroy Merlin is the biggest player, with a market share of **%. Castorama, Bricodépot and Bricomarché share **% of the market between them, with the other players having a smaller share. France, ****, in Source: Fédération des magasins de bricolage What's more, these chains are often ...

3.5 Interview with Nicolas Dujardin, Director of Operations at Océinde

Marine: Welcome to the Niche, the podcast that analyzes the niche market with the entrepreneurs who are shaking things up. I'm Marine and I work at Businesscoot, the start-up that's dusting off market research before it starts. Subscribe to our podcast on Spotify and Apple Podcast. And now for today's niche: the paint market. For this, I welcome Nicolas Dujardin, Director of Operations at Océinde. Hello Nicolas.

Nicolas : Hello Marine.

Marine: Nicolas, first of all, let me give you a brief overview of Océinde.

Nicolas: Yes, Océinde is a French family-owned industrial group with several different activities, including the manufacture of paints, building chemistry with several brands, several factories that are distributed both to the general public and to professionals.so you'll find us in DIY superstores, but also in networks of independent professionals, craftsmen and materials merchants.

Marine : Thank you very much for your presentation. We're going to start right away with some general market data. In this episode, we're going to concentrate on the "professional" building paint market, the segment you've just mentioned, and decorative paint, i.e., for private individuals. We're going to leave aside all industrial paint, paint, anticorrosion, marine paint and car body ...

4.1 Paint production and dependence on suppliers

The five components of paint

Building and decorative paints are always made up of the same components:

The binder, a polymer that enables the paint to become solid as it dries, Solvent, to make the paint fluid enough to facilitate application, Pigments, natural or synthetic, give the paint its tint and opacity, Fillers, which give the paint other technical specificities (***), Additives, such as preservatives, anti-skinning agents and fungicides, essential to the manufacture and long-term balance of the paint.

Dependence on suppliers: the example of titanium dioxide

Titanium dioxide, an ubiquitous pigment in paints ensuring a good white sheen, doubled in price during ****, followinga shortage of this raw material due to the loss of **% of the pigment's reserves and resources in a fire at a Finnish factory owned by the chemist Huntsman. [***] As a result, paint prices have logically risen. In ****, French paint manufacturer Onip (***) had to increase its paint prices by *-*%.

4.2 Average prices

According to maisonentravaux.frwebsite, painters can charge by the hour or by the square meter. A painter's hourly rate is between €** and €** before tax, and a painter's square meter rate is between €** and €** before tax. Depending on the type of home (***) must also be added to the total bill. Lastly, the cost of a painter's visit can vary between €** and €** exclusive of tax

Rates depend mainly on the services provided (***). Professional painters generally charge more for their services than general contractors.

Average paint prices vary widely, from low-cost products such as vinyl and magnetic paints, to high-end, multi-task paints such as water-repellent, epoxy and insulating paints

Average price of paints sold per m* France, ****, in € Source: ****

4.3 Production price indices

The graph below illustrates the trend in production prices for paint manufacturers. While production prices remained relatively stable for several months, they rose sharply from March ****, then stabilized from January ****, in line with global inflation.

Producer price index for paints, varnishes and other coatings France, ****-****, base *** in **** Source: ****

This sharp rise in **** is explained by a sudden increase in raw material costs due to several causes, such as bad weather in the United States and logistical tensions on transport, particularly from Asia. The sector's heavy dependence on international supplies has put it in a difficult position [***]. These difficulties were exacerbated by the start of the conflict in Ukraine, which destabilized many sectors.

4.4 New ranges and digital innovations

In May ****, ONIP, a high-end French paint manufacturer, released a range of Clean'R paint that destroys up to **% of formaldehydes in an interior room. [***]. In ****, nearly **% of ONIP's sales came from this range.

Paint group AkzoNobel, owner of the Dulux Valentine brand among others, wants to revitalize sales of color paints, which have been in decline in recent years. To this end, in **** the company released its smartphone and tablet app christened Visualizer, downloaded more than ** million times by the end of ****[***].

Also new in ****, Dulux Valentine is releasing a new range of "Si simple" paints, for which the brand will suggest duos of shades to match for interior decoration. In the same year,start-up PaintUp, which is developing a robotized solution for cleaning, stripping and paintingand painting of large surfaces, was selected by the "Santé-Prévention dans le BTP" gas pedal. This accelerator facilitates links between the most innovative companies in order to increase progress in worksite organization.

Environmental responsibility is also an issue of growing importance in the sector, as evidenced by the fact that PPG was awarded the CSR Trophy by Inoha in November **** for its Ripolin paint brand. Ripolin is committed to reducing the environmental impact ...

5.1 Taxation and regulatory standards

VAT rates

Since January*, ****, renovations to older homes carried out by professionals in the sector have been subject to aReduced VAT rate of around **% (***). For thermal renovation work, a reduced rate of *.*% may apply in certain cases, such as the application of paint when insulating walls from the inside, for example. [***]

To qualify for this reduced VAT rate, the property must be used as a dwelling (***).

The reduced VAT rate applies to work carried out to improve, transform, fit out or maintain a dwelling. Several types of work are covered by this regulation, such as

converting premises previously used for other purposes into housing, work on balconies, terraces, loggias or verandas that does not result in an increase in living space, urgent habitable work.

On the other hand, "standard" VAT applies in the following cases:

if one of the structural work lots is modified by more than **% (***) if more than two-thirds of the six lots that make up the finishing work are modified (***). Other standards and regulations DTU **.* is the reference for painting work. Entitled "Travaux de bâtiment - revêtements de peinture en feuille mince, semi-épais ou épais", it covers both it covers both new-build and maintenance-renovation work, ...

6.1 Segmentation

• Cromology
• Akzo Nobel
• Axalta Coating Systems
• Beckers
• ONIP Omnium National Industriel des peintures
• Théolaur Peintures (Actéo Groupe)
• Bonglet
• EGR Groupe
• Leroy Merlin France (Adeo)
• Castorama France (Kingfisher)
• Resipoly Chrysor
• Semin
• Toupret
• V33
• Zolpan
• Tollens
• Seigneurie Gauthier
• Ripolin
• Ressource Peintures
• Astral (Akzo Nobel)
• Sherwin Williams
• Sikkens (Akso Nobel)
• Syntilor (Blanchon Groupe)
• Hammerite
• Diot PGM
• Simab Peintures
• Comus Peinture (Oceinde Groupe)
• Savy Brosserie
• Daw Caparol
• Unikalo SCSO Société des colorants du Sud-Ouest