Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
A Profile of the Central and Eastern European Paint Industry, 3rd edition
Article Type: Conferences, training and publications From: Anti-Corrosion Methods and Materials, Volume 55, Issue 3.
IRL has recently published a long-awaited third edition of its title, A Profile of the Central and Eastern European Paint Industry. The study provides overviews and forecasts for 21 national paints and coatings markets across the continent from Central and Eastern Europe to the republics of the Caspian region. Paint demand across these countries has been evaluated at 4.82 million tonnes, and with average market growth of 9 percent pa, this can be expected to reach more than 7.7 million tonnes by the end of 2012. Very simple drivers underpin growth in coatings demand across the region, including:
strong growth in construction markets;
strong growth in infrastructure investment;
rising salaries and greater disposable incomes; and
growing industrial output.
The regional market is now dominated by two economies whose paint demand is very similar. The markets for paints and coatings in Poland and Russia can both be estimated at about 1.25 million tonnes for 2007. The translates into per capita paint use of 32.3kg/head in Poland (population 38.5 million) but only 8.8kg/head in Russia (population 141.3 million). Poland can be expected to overtake Russia as the largest paint market in the region within the next two years. Key contributors to the future success of the Polish paint market are major construction projects with EU backing, continued investment in manufacturing, increasing housing completions and the country's joint hosting of the European Cup in 2012. Russia, in the meantime, is enjoying modest growth in the decorative market with DIY-consumers looking for increasingly better quality paints and professionals standing by their preferred economy types. Some of this potential, however, is being capped by the greater popularity of wallpaper- and plastic- based ceilings in Russia.
Other markets which present attractive growth opportunities include Ukraine, Romania, and Turkey. Of these three, Romania is the smallest market at about 180,000 tonnes, with Ukrainian paint demand at 335,000 tonnes and Turkish paint demand at more than twice that. These sizeable markets offer strong combinations of market volume, rapid growth and population.
In many countries in Central and Eastern Europe, decorative coatings have taken on such significance that there are sometimes circumstances where industrial coatings are being neglected. As a result, many accounts for the supply of industrial coatings are now being fulfilled by exports from multinational companies in the west, which has the effect of reducing production activity and market and opportunity awareness in the region.
Industrial coatings related to the Central and Eastern European automotive industry, etc. are markets which are often sustained through importers and distributors. Some national strengths continue to help to build business, for example with plastic finishes placing German companies in a very strong position and powder coatings doing the same for the Turks. Refinish markets remain open for continued development, while automotive OEM coatings demand will continue to rise in line with disposable incomes in Central and Eastern Europe, or according to general demand in Western Europe.
A Profile of the Central and Eastern European Paint Industry covers the following 21 countries: Bosnia- Herzegovina, Czech Republic, Hungary, Poland, Slovakia, Slovenia (Central Europe); Estonia, Latvia and Lithuania (Baltic states); and Armenia, Belarus, Bulgaria, Kazakhstan, Kyrgyzstan, Moldova, Romania, Russia, Serbia, Turkey, Ukraine and Uzbekistan (Eastern Europe). The main focus of the study is decorative paints, with automotive OEM, refinish, powder and plastic coatings being covered in major economies. Full characterisations of the Czech, Slovak and Turkish paint markets are also included.
Sections from the report, priced individually, will soon be available to purchase online at IRL's web site: www.informationresearch.co.uk