Challenging year 2023 for coatings, paints and printing inks

The German paint industry is operating in a difficult market environment, with sales and exports down in 2023. This was announced by the Association of the German Paint and Printing Ink Industry (VdL) at its annual business press conference.

In 2023, 1.47 million tons of coatings, paints and printing inks were sold in Germany - a drop of a good 3% compared to the previous year. A further decline of 2% to 1.44 million tons is expected in the current year, reported VdL President Peter Jansen at the annual economic conference of the German Paint and Printing Ink Industry Association (VdL). Sales of coatings, paints and printing inks sold in Germany rose by just under 2% year-on-year to EUR 6.1 billion in 2023 due to inflation. The VdL also expects a further slight increase of 1% to EUR 6.2 billion in the current year. In addition to the weak domestic market, the significant decline in exports of 11.3% to just 774,000 tons also came as a surprise.

The volume of architectural paints declined by a further 4% in 2023. While the professional market in Germany declined significantly by -5.5%, the DIY market recovered slightly and grew by just under 1%. For 2024, the VdL is forecasting a further decline in volume of 2.5% to 734,000 tons. Domestic sales will only decline slightly and amount to just under 1.8 billion euros.

Consumption of industrial coatings rose slightly by 1.5% in volume in 2023, while the value increased by 6.7% due to price factors. While automotive OEM coatings, automotive refinish coatings, other vehicle construction and anti-corrosion coating materials developed quite positively, consumption of coatings in the other industrial sectors declined, particularly in the wood and furniture industry, where it fell by almost 9%. Due to the lack of orders in some customer segments, a small decline of 0.5% in volume is expected in 2024 Domestic sales are likely to increase by just under 3% due to price effects.

The value of exports fell by just under 4% to 3.6 billion euros in 2023. In important neighboring European countries, but also in China, the development of the customer industries was relatively weak, especially in general industry. Imports amounted to 1.3 billion euros (-8%). The value of foreign trade is expected to recover by around 2% in 2024.

Business for the paint industry will remain difficult in 2024 - in addition to the still weak architectural coatings market, the environment for industrial coatings will also deteriorate, and the economic situation in the industry could improve slightly in the second half of the year at best.

Companies have reached their limits when it comes to the burden of regulations, reporting obligations and bureaucratic rules from Brussels and Berlin. These have now reached such an extent that the effort and costs are hindering economic progress and innovation. In particular, the number of tasks has grown to such an extent that small and medium-sized companies in particular can no longer cope with the volume. "Efforts to reduce bureaucracy and improve legislation are essential - this applies to politics in Germany and in Europe," says VdL Managing Director Dr. Martin Kanert. He calls for efficient and effective legislation in order to minimize bureaucracy. "This reduces costs and increases competitiveness, especially for small and medium-sized enterprises."

Meanwhile, in the EU election year 2024, the topics of the Green Deal remain at the top of the agenda for members and the association. Contrary to the EU Commission's intentions at the beginning of the legislative period, not all initiatives have been translated into regulatory measures. Kanert: "Decisive legislative projects are still pending and will be critically monitored by the VdL even after the European Parliament elections." (OM-3/24)