A brief assessment of the results published by three of Europe’s top paint makers – AkzoNobel, Hempel and Jotun – suggests that decent, top-line growth was pretty hard to come by for some in 2024. A comparison of their participation on a sectoral or geographical basis revealed it was a case of the right (or wrong) place at the right (or wrong) time.

Innovation through sustainable technology design and increasing profitability emerge as the key drivers for the European coatings sector for yet another year. Sustainable technology and powder coatings (as one of the most eco-friendly coatings types) continue to champion much growth for the industry.

For most, it was a matter of ups and downs, with different aspects of global exposure culminating in gains in one region only for there to be disappointments in another that flattened out results.

AkzoNobel in 2024

AkzoNobel participates in almost every mainstream coatings segment. Decorative paint sales in the EMEA region turned out flat overall, with mixed local conditions delaying the market’s return to pre-COVID levels. Wet weather in Europe slowed sales of exterior paints in the trade area.

In other parts of the world, AkzoNobel recorded strong volume growth in Latin America (Brazil more so than Argentina and Colombia) and southeast Asia, which was dragged down by a steep Chinese decline due to a crisis in Chinese real estate and lower household consumption. The takeover of Huarun in China (effected in 2023) added 1% to its turnover.

Among the company’s Performance Coatings (industrial coatings) operations:
• Marine and Protective was the fastest growth area at 8% in 2024, enjoying strong demand and clear share gains in marine newbuilds, and a strong performance in a dynamic Chinese market.
• Powder coatings performed very well in otherwise flat market conditions, growing volumes and outperforming the market, particularly in the US and China. The segment suffered from a downturn in automotive applications.
• Automotive and Specialty Coatings started out strong in 2024, but slowed down in the second half, due to softer demand in vehicle refinish and lower production rates at the big aircraft manufacturers, despite sizeable backlogs. The Industrial Coatings business was flat in soft market conditions.

Most of AkzoNobel’s Performance Coatings operations seemed to yield to softer market conditions during the second half of 2024.
AkzoNobel closed three decorative sites in the EMEA region last year alongside a further three sites in Europe and Asia. It plans to make further rationalization announcements throughout 2025 and 2026 as it aims to be leaner in its operations.

As with other companies, and especially the two that follow, AkzoNobel is confident that new technology it has developed will fuel its future growth.

The fact that most companies are hatching new clutches of technology at this juncture reflects how there has been a shift from mergers and takeovers towards investment in new technologies over the last few years. For European companies, the green agenda and circular economy being pushed by the EU are something of a wedge in this regard.

Hempel in 2024

Hempel’s activities in the world marketplace are divided between decorative, marine and protective coatings. Decorative paints were the main area of growth (2.4%) for Hempel in 2024, a year in which it sharpened its focus on its full-service acquired companies (Crown in the UK and Wattyl in Australia) and divested its previous purchase of J W Ostendorf (65% stake) and Renaulac.

Concentrating on its full-service offering yielded growth that outperformed the markets in the UK and Australia. In Australia, the company’s Solagard paint was rolled out by Hempel Wattyl across 242 Bunnings stores, and in the Middle East, a new Topaz Signature premium emulsion paint was introduced. Hempel also won a feather for its cap when it was recognized as the UK’s top decorating brand for sustainability by Marie Claire magazine.

Energy and infrastructure – essentially Hempel’s protective coatings arm – saw sales rise by 0.1% in 2024 with a regional performance that appears to vary. Growth here originates in the Middle East, where Hempel has done well with its corrosion under insulation offering, a marketplace that it described as becoming more crowded a few years ago as more competitors joined.

Regrettably that sort of fate seems to have happened across the protection of renewable energy facilities across the EMEA region, but that being said, Hempel has held on to its strong position in the protection of wind towers. Sales for the protection of infrastructure declined but those in more high-tech areas such as passive fire protection helped to stabilize performance enough to give a satisfactory result.

Marine paints at Hempel benefited from a shift to premium technologies within the sector but suffered the effects of postponements of vessel dockings. As a result, marine paint sales at Hempel declined by 5.8%.

Jotun in 2024

Jotun’s participation in the global markets spans the decorative, protective, marine and powder coatings sectors. A brief overview of Jotun’s results suggests it has done especially well outside Europe and particularly in some of the new markets that it has entered, such as Algeria and Ethiopia.

With only very rare exceptions. Jotun’s industrial strategy has always taken the path of boldly entering new markets with organic growth (as opposed to participating in the M&A scene).

The global decorative paint market proved to be something of a fairground for Jotun in 2024, with a few swings and roundabouts. Jotun reported slower decorative sales close to home in its native Scandinavia (where it re-launched its Drygolin premium wood protection products) as well as in Vietnam and Saudi Arabia. But any of this slower growth was offset by faster growth in the United Arab Emirates, Türkiye, Malaysia and Indonesia.

During the year, it launched Nuances – a new 30-color decorative palette for 2025 – that was presented to designers and specifiers throughout the Middle East, Southeast Asia, China and Scandinavia. Decorative paint is the largest single contributor to Jotun’s portfolio and constitutes 36% of sales.

Jotun’s marine coatings activity was shored up once again with strong performance in the newbuild, drydock and seastock markets, with the newbuild segment looking in strong condition until at least 2026, according to the company’s annual report. Jotun reported strong demand for premium-quality antifoulings, and it also benefited from the very strong hand it has built out of marine industry support services and technologies. Some 28% of Jotun’s sales were achieved in the marine sector.

Protective coatings at Jotun experienced growth in all sectors of application and especially those in infrastructure projects. In the energy sector, there was strong growth in renewables with on- and off-shore wind plants as well as for oil & gas applications. Protective coatings account for 29% of Jotun’s turnover.

In powder coatings, Jotun achieved record sales, notably in China in the electric vehicles (EV) sector. In southeast Asia, the introduction of new architectural powder coatings (Jotun Ultimatt, Lifeshine and Cosmos) gave architects and specifiers opportunities to consider different finishes for buildings. Architectural powder coatings also performed well for Jotun in the Middle East (where it opened a new facility in Dubai) and in Türkiye. Powder coatings are Jotun’s smallest sector and comprise 7% of turnover.

I will write more for Coatings World on the sustainability achievements of companies like these later in the year.