Paint, Wallcoverings and Woodcare Markets - UK 2009-2013AMA Research
July 1, 2009
88 Pages - SKU: AJLA2420291
Often viewed as a key indicator for the overall health of the home improvement market, the UK paint, wall coverings and woodcare sectors have experienced a tough trading environment in the last 18 months.
The market was estimated to be worth around £880 million in 2008, reflecting a decline of around 5% in value terms from 2007. This was mainly due to the difficult conditions experienced in both the domestic and trade paint sectors caused by significant decline in the housebuilding and house moving sectors. Current indications are for further value decline of around 3% in 2009 with conditions continuing to be described as “challenging’’ by many industry sources.
Paints dominate the product mix with around 64% value share in 2008, having lost slight share in recent years. Lower activity in key end-use sectors has considerably affected trade paints over the last 12-18 months with trade gloss in particular experiencing declining demand. However, there has been an indication of some growth in the DIY sector with some consumers switching back to DIY rather than employing professional decorators. In addition, higher value products such as low VOC paints and those with “eco” credentials have helped partially offset overall market decline.
The wall coverings sector has experienced marginal growth in 2007-08, though this has been set against a background of overall volume decline since the late 1990’s. Wall coverings have benefited from rising average prices in recent years, strengthened by use of higher value wall coverings in “feature walls”. In contrast, the woodcare sector has experienced more volatile conditions, with garden woodcare having been particularly hit by poor summer weather conditions in 2007-08.
The overall market has also been affected by changes within leading suppliers over the last 2-3 years. This has been mainly due to the ascendancy of Akzo Nobel within the paint and woodcare sectors via its acquisition of ICI, which has resulted in some industry restructuring.
It remains extremely difficult to forecast the future performance of the paint, wall coverings and woodcare market due to continuing uncertainties within the UK and wider global economies. Overall, the market is expected to experience further decline in 2009 before some stability returns to the market from late 2010 onwards. Current indications are for only moderate annual rates of growth to 2013 when the market is expected to reach around £930 million. Impetus to the market is likely to be primarily derived from returning confidence in the housing market - both in terms of new build and renovation - though non-domestic markets are likely to slow considerably particularly if cutbacks are implemented in Government capital spending programmes from 2011.