AMA Research offers a greater insight into what’s driving growth in the paint and wallcoverings market, with demand for specialist and value-added paints on the rise, and the wallcoverings market set for a boost from increasing new-build and RMI activity. he market for paint,


wallcoverings and woodcare products was worth an estimated £925million in

2017. An upturn in the construction sector in 2014 stimulated demand for paint and wallcoverings and the market continued to grow to 2015, underpinned by positive developments in the domestic sector. However


r,, the market has

been relatively flat since 2016. Key drivers of demand are the housing market, consumer confidence, home improvement levels, design trends, non-residential construction activity and the weather in any given year. The paint and ef

int and effects sector has ff

grown by an estimated 8% from its low point in 2009, although it has been r elatively flat in r ecent years. Within thWi ithin this sector there has been a continued shift towards more water-based paints, with acrylic eggshell, for example, r epresenting a growth ar ea. Ther e has also been an increase in demand for value- added products, such as durable, stain resistant and easy-to-clean products, as well as more specialist paints, including light reflecting, textured finishes, anti-bacterial, low odour , fast drying, anti-slip floorr,, fas paint and insulating paint. Recently

market has benefited from an upturn in the domestic sector

y, the paint and effects the domestic sector, where

y, r,

there has been a shift towards the ‘improve don’t move’ trend and a focus on modifying homes and undertaking higher value pr ojects. This tr end is r eflected in the end use sector mix of the UK paint market, with the DIY sector accounting for over half of the paint market by value. A dditionally,,y the domesti c trade sector accounts for around a quarter of the market by value. The UK wallcoverings market has seen limited gr owth in recent years, having been relatively static since 2015, the market is expected to

r emain flat in 2018 but is

predicted to return to gr owth fr om 2019 onwards. The domestic sector accounts for a significant share of the wallcoverings market and growth within the wallcoverings sector

18 DIY WEEK 9 MARCH 2018

will be primarily due to increasing new build and RMI activity in the r esidential sector .

Consumers in the wallcoverings sector appear to be incr easingly confide nt

in usi ng bold designs.

Lar ger designs with increased use of texture and digital prints ar e also popular as digital printing has enabled some revolutionary c hanges, with

the availability

of unlimited colour palettes and no restrictions on pattern size. Designs may also be seasonal, with many suppliers of fering ‘Spring Collections’ to coincide with the traditional start of the DIY season ar ound Easter time and autumn representing another key period. Key influences in the woodcare pr oducts market are the housing market and the underlying economy which affects house moves, redecoration/replacement cycles, consumer confidence and household spending, reflecting the fact that this market is mature. Despite this, the woodcare sector experienced sustained gr owth over the years 2013 to 2015, as a r esult of higher housebuilding and house moving levels.

In terms of distribution, the Home Improvement/DIY multiples channel accounts for the largest share of

the market, with wide

ranges of branded and un-branded/ own brand products available in the majority of outlets. However trader,, centres have gained share in recent

years benefiting from the growing trend to outsource decorating work to tradesmen, and the direct channel has benefited from recent growth in the non-domestic sector. Distributionr.. routes ar e likely to be impacted by the structural changes curr ently occurring in the retail sector

an incr easing number of distributors offering

multi or omni-channel

services, as well as the predicted growth in ‘click and collect’ buying. Going forward, market prospects in the paint and wallcoverings market r emain positive, although only modest gr owth levels of 1-2% per year are currently forecast to 2022. Levels of residential RMI are forecast

to increase providing

growth in the medium term, despite the economic uncertainty - not only are people impr oving their home instead of moving, but the trend to carry out improvements prior to placing pr operties on the market appears to be returning. The trend to ‘get someone in’ instead of doing it yourself is also expected to continue, which will benefit the market in value terms. On the other hand, the outlook for the non-residential sector is for only marginal improvements in the short term.

The ‘Paint, Wallco Wa Wo ordered online at www allcoverings &

Woodcare Market Report – UK 2018- 2022’ report is available now and can be w..amaresearch.

re or by calling 01242 235724.

Source: AMA Research Ltd/Trade Estimates

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