Of the major paint and coatings segments, architectural paints touch the most people. People are always looking to paint their interiors and exteriors of their homes. Not surprisingly, it is a huge segment; Allied Market Research valued the architectural coatings market at $63.3 billion in 2020, and the segment continued to grow through the COVID-19 pandemic.

Eric Stevenson, director of brand and product management for PPG’s Architectural Coatings business in the U.S. and Canada, reported that PPG saw softness in the DIY market compared to previous years, especially those in the height of the pandemic, adding that there was renewed strength in the Pro market.

“One metric we look to as indicative of this strength is work demand,” Stevenson said. “Currently, Pro’s backlogs of work remain strong. Our quarterly survey reported that paint contractors averaged about 12 weeks of backlog in Q3 2022, which will likely continue through the end of the year and into 2023.”

Stevenson added that the strength of the Pro market can be attributed to a trend PPG is seeing in home improvement called “Do It for Me” (DIFM).

“As a result of the strong housing market experienced for the majority of 2022, homes in the U.S. have never been more valuable,” Stevenson noted. “Whether homeowners are looking to increase the value of their home before taking advantage of the ‘sellers’ market,’ or if they’re looking to remodel their current homes because buying a new one is too expensive, pro painters, remodelers and other skilled tradesmen are in high demand to assist with DIFM projects.”

Rob Sheehan, vice president, customer segments & product marketing at Benjamin Moore, noted that the housing market always has a direct correlation to the paint business.

“When houses were selling like they were prior to the interest rate increases, the industry benefited from the turnover in homes as both sellers and buyers were painting,” Sheehan observed. “Today with much higher interest rates, housing sales have declined, and inflation has impacted so many areas.”

That doesn’t mean that paint and coatings sales will suffer, though.

“We anticipate people who are now staying in their homes will look to paint to keep them fresh instead of moving,” said Sheehan. “It’s a pretty inexpensive way to make a significant impact to your home whether you’re doing it yourself or hiring a painting contractor.”

AkzoNobel pointed to its Interpon D architectural powder coatings as a sustainable building solution that enhances the beauty and longevity of buildings.

“If we take a closer look at the architectural segment, from a powder coatings perspective, the market grew by double digits in 2021 and continued to perform strongly in Q1 2022,” said Sanal Limoncuoglu, AkzoNobel’s commercial director for powder coatings in SEE and MEA. “Then from Q2, it started slowing down due to pressure from energy prices that impacted aluminum costs, as well as the significant slowdown of the whole construction market in China. Like other sectors, during Q3 and now in Q4, de-stocking at our aluminum extrusion plants continues and activities in Europe are slowing down further.”

“We experienced high volatility in our markets, from raw material constraints and pandemic-related issues that impacted manufacturing, to persistent inflation in raw materials and energy prices worldwide,” Limoncuoglu added. “The powder coatings market, like most other coatings markets, is impacted by the current macro-economic and geo-political climate, which leads to temporary volatility in market demand. This follows a period of unprecedented, dynamic market conditions over the past two years.”

Color and Design Trends

It is always fascinating to see the leading paint and coatings manufacturers select their Colors of the Year. For the most part, natural colors were dominant among the selections, although here were some bolder selections as well. For example, Benjamin Moore selected Raspberry Blush 2008-30 as its choice for 2023 Color of the Year.

“Over the past several years, we have seen people becoming more comfortable with using bolder colors in their homes and being more expressive in their designs,” said Arianna Cesa, associate manager, color marketing & development at Benjamin Moore. “We selected eight dynamic hues for our Color Trends 2023 palette to celebrate the use of color to influence dramatic transformations of a space. Each color has a distinct presence and personality.

Cesa noted that Raspberry Blush 2008-30, is a dynamic, charismatic color that encourages color confidence.

“We love seeing Raspberry Blush 2008-30 on all four walls to make a bold color statement,” Cesa said. “We particularly love it in a dining room as a modern, blushed update on the classic, deep red dining room. If you prefer a smaller dose of color, try it on an accent wall, ceiling, or painted furniture. We also love the idea of using it on the walls, trim, and ceilings in a smaller space like a powder room to create an unexpected and impactful design. We know it can be intimidating using more saturated hues so we hope our Color Trends 2023 palette will inspire and show people the endless possibilities of expressive color and design.”

Sherwin-Williams selected Redend Point SW 9081, a blush-beige hue with subtle pink undertones, as its 2023 Color of the Year.

Sue Wadden, director of color marketing at Sherwin-Williams noted that Sherwin-Williams’ global color forecast team researches and identifies the cultural trends that are influencing the way our world is interacting with color,  and identifies the most prominent themes that will define the coming year.

“These themes are what we pull from to select our annual Color of the Year,” added Wadden. “For 2023, we know that colors are warming up and we’re transitioning away from the grays that have defined the past decade.

People are still finding inspiration in nature and we’re focusing on the importance of self-care not only for ourselves, but in looking out for our communities as well. We’ll continue to see a desire for colors that exude warmth, kindness, serenity and empathy. Warmer whites, beiges, pinks and browns bring these feelings into the home.”

Blank Canvas, Behr Paint Company’s 2023 Color of the Year, is a soft white with a warm undertone. Erika Woelfel, Behr Paint Company’s vice president of color & creative services, observed that colors that are trending for 2023 are still focused on providing versatility along with a sense of comfort, ease, and relaxation.

“For example, neutrals in shades of warm whites, creams, and gray are at the forefront,” Woelfel noted. “For instance, Behr’s 2023 Color of the Year, Blank Canvas, conveys this as a warm white providing a hopeful sense of renewal. Color trends continue to lean into wellness and the natural environment with greens and blues remaining in the mix as showcased in our 2023 Color Trends palette.”

PPG selected Vining Ivy (PPG1148-6), a refined blue-green, as the Color of the Year for both its PPG and Glidden brands.

“In this post-COVID era, consumers are seeking to simplify,” said Stevenson. “The pandemic shed light on the importance of serenity and little moments, and consumers are looking to carry this simplicity and calm forward with in home design through the use of versatile colors.

“Vining Ivy (PPG1148-6), a beautifully robust and refined blue-green, was selected as the PPG and Glidden 2023 Color of the Year, as it perfectly embodies this trend towards simplicity,” Stevenson continued. “Vining Ivy is an energizing yet grounding blue-green that can be used in any space. Its versatility takes the guesswork out of design, leaving consumers with more time to indulge in the things that matter most to them. PPG’s color experts see the adaptable Vining Ivy appearing across exterior and interior commercial and residential spaces, styles and textures in the coming year.”

AkzoNobel selected Wild Wonder, a golden hue, as its 2023 Color of the Year.

“We recently launched our Color of the Year – Wild Wonder,” Bob Dirks, AkzoNobel’s global segment manager architectural, said. “The unique colors in the palette are intended to help people reflect and reconsider their relationship with the Earth’s natural resources, with the warm, golden tones of the harvest, and the positivity and energy that flows from the happy promise of a new season and a new tomorrow.”

Outlook for 2023

The industry leaders we spoke with believe that 2023 will be another year of growth for the architectural coatings market.

Stevenson said that PPG expects to see growth in 2023.

“In 2022, we continued to progress our launch of the expanded PRO painter initiative with The Home Depot,” he noted. “We started joint work with the HD supply team to hunt for new paint customers, and while early, this collaboration is yielding results and we expect it to be a catalyst for future growth in the U.S. architectural coatings business. Overall, paint contractors are providing us with ongoing positive feedback on the convenience of buying well-recognized PPG PRO products at The Home Depot.

Stevenson pointed out that the newly launched PPG Paints App is another catalyst for growth in 2023 and beyond.

“Recent research has shown that like most consumers in the post-pandemic world, Pros are looking for shopping options that deliver flexibility and convenience,” said Stevenson. “To address these evolving needs, while still delivering on the product quality that Pros have to expect from more than 135 years of industry experience, PPG is now offering Pros the option to shop through the PPG Paints App—the store that never sleeps—where they can place orders anytime, anywhere, 24/7. Not only does the PPG Paints App make it easier than ever for Pro customers to order PPG products, it also offers the option to choose from delivery to jobsite or in-store pickup—ensuring the right product is available, at the right place, at the right time.”

“There’s an increasing demand for more sustainable coatings solutions,” said Limoncuoglu. “The Powder Coatings business is well positioned, based on its intrinsic environmental benefits – no VOCs, very low waste levels and high production efficiencies. This switch to powder will further grow the market demand for powder solutions. When the growing macro-economic volatilities stabilize, our continued investment in innovations in architectural products will further help our customers advance in their industries.”

“Given the current state of the economy, we anticipate the first half of 2023 to be softer, picking up again in the back half of the year,” Sheehan said.

“We are in a constant growth mindset at Sherwin-Williams and look forward to building on the success of 2022 with new research and insights in store for 2023,” Wadden concluded.