Paint and coatings industry 2024: Red figures for paints, coatings and printing inks

2024 was a challenging year for the German coatings and inks industry. Sales and turnover fell, as the Association of the German Paint and Printing Ink Industry (VdL) explained at its annual business press conference.

As expected, 2024 was a challenging year for the coatings and printing inks industry, with sales volumes falling by 4% to 1.4 million tons. Compared to the previous year, turnover fell by just under 3% to 5.9 billion euros, reported VdL President Dr. Harald Borgholte at the annual press conference of the German Paint and Printing Ink Industry Association (VdL). The overall economic weakness is therefore weighing heavily on the coatings and printing ink industry, meaning that the market situation will remain tense in the coming year: The association expects the downward trend to continue and is forecasting a 2.5% decline in sales volumes for the market as a whole.

The diverse industrial coatings sector is particularly affected by the weakness of the manufacturing industry. The most important customer industry in the industrial coatings sector in 2024 was automotive series production with a turnover of 600 million euros. This was followed by the automotive refinish coatings sector with 532 million euros and the metal products sector with 390 million euros. Domestic demand here shrank by 3% in 2024. This is due to declines in the furniture and wood sector and in general industry. Furniture and wood coatings recorded a 7% drop in demand last year, while the general industry suffered a 5% decline, reports Borgholte.

The VdL expects demand to fall by 1% in 2025. Only the anti-corrosion coating materials segment is stable, driven by government-funded road and energy projects, and expects volume growth of 4%.

The quantities of architectural paints sold fell significantly by 5% in 2024. This negative trend is partly due to declining sales in residential construction. The do-it-yourself (DIY) sector recorded a 4% decline in volumes in 2024, while the professional sector even fell by 6%. In view of the persistently difficult situation in the construction industry, a similarly negative picture is emerging for 2025. The VdL is forecasting a 3% reduction in volumes sold. Accordingly, demand for architectural coatings is not expected to recover until 2026, when the economic situation in the construction industry is expected to improve.

International trade was also weak: goods worth 3.6 billion euros were exported in 2024, around 2% less than in the previous year. Sales from imports fell significantly (-7%). Goods worth a total of 1.3 billion euros were imported. For 2025, the VdL expects moderate growth in exports, boosted by a slight economic upturn abroad. Imports are expected to stagnate due to the ongoing economic weakness at home.

In his analysis, President Borgholte initially gave little hope for more colorful times. Paint and printing ink manufacturers are too dependent on the development of the economy as a whole. Additional uncertainty factors arise from the announced US tariff increases and the economic policy course of the German government following the new elections. "Nevertheless, we are celebrating 125 years of the German coatings industry this year. Over these decades, our companies have survived much more difficult times. We are therefore confident that we will also be able to overcome these challenges with resilience and great innovative strength," Borgholte remained positive.

A new political mindset is required in order to free oneself from economic pressure, emphasized VdL Managing Director Dr. Martin Kanert in the political part of the press conference. "Companies in the coatings and printing ink industry are confronted with a plethora of increasingly detailed regulations, documentation and reporting requirements. Every year, more resources have to be used to meet the legal requirements. Furthermore, we fear that the implementation of existing measures and those expected under the announced revision of chemicals legislation will lead to a further shrinking of the raw materials base." In the meantime, however, things are moving in Brussels and the industry is looking forward to the EU Commission's announced Clean Industrial Deal, which aims to take greater account of companies' needs. They are now also looking to Berlin with excitement. "The VdL has clearly communicated our demands to politicians. We are now hoping that a new German government will take a decisive approach to reducing bureaucracy and proactively get involved in the European legislative process," concluded Kanert. (OM-2/25)