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    Market Research

    IRL Releases Profile of the Eastern European Paint Industry

    ...

    03.22.13
    IRL has published, “A Profile of the Eastern European Paint Industry.” This report has been developed and expanded upon from IRL’s previous studies. The report provides overviews and forecasts for ten national paint and coatings markets across the continent from Eastern Europe to the countries of the Black Sea region, namely Armenia, Belarus, Estonia Georgia, Latvia, Lithuania, Moldova, Russsia, Turkey and the Ukraine. It focuses on and provides market insight into nine mainstream coating sectors.

    According to the report, paint demand across these countries has been evaluated at 2.7 million tons, and with average market growth of 5.8% per annum, this can be expected to reach more than 3.6 million tons by the end of 2016. Very simple drivers underpin growth in coatings demand across the region, including:
    •  growth in construction markets
    •   growth in infrastructure investment
    •  rising salaries and great disposable income
    •  growing industrial output.

    The regional market is now dominated by two economies, Russia and Turkey, which together represent approximately 2.3 million tons of paint and coatings consumption for 2011. This translates into per capita paint use of 10.3 kg/head in Russia (population almost 143 million) and a similar per capita consumption of 10.2 kg/head in Turkey (population 78.8 million).

    Turkey is enjoying the highest market growth rate. Key contributors to the future success of the Turkish market are growth in construction, maintenance and refurbishment projects carried out in the country, the strong position of the local powder coatings industry, growth in end-use industries such as automotive, electronics and home appliances, and expected growing demand for waterborne and low-VOC paints dues to the accession of the TSE (Turkish standards body) into the CEN.

    Russia shows average growth in the architectural market. Growing interest of customers in health, safety and environmental matters is on the key drivers behind the growing popularity of low-VOC and water-based paints. However, the low quality/economy architectural paint segment still holds the largest share. Industrial coatings are poised for higher than average growth over the forecast period, with the highest growth expected in sectors of marine paint and coatings for bridges and tunnels. One of they key mid-term marketing opportunities for the Russian coatings market, according to IRL, will be the hosting of the Winter Olympic Games by the Russian city of Sochi in 2014.

    Other sizeable markets inckude the Ukraine and Belarus. Ukrainian paint demand is placed at approximately 230,000 tons and Belarus paint demand is half of this.

    Other finding of the report: In some countries in Eastern Europe architectural coatings have taken on such significance that there are sometimes circumstances where industrial coatings are being neglected. As a result many account for the supply of industrial coatings are now being fulfilled by exports from multinational companies in the west and are often sustained through importers and distributors.

    In the overall, Eastern Europe market, the best opportunities for the marketing of industrial coatings have been identified in the areas of powder, marine and automotive OEM coatings.

    For more information on “A Profile of the Eastern European Paint Industry” go to www.informationresearch.co.uk.
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