Construction Repaint Market Trends

Introduction

As we enter the year 2024, the construction paint market is set to undergo a significant transformation, influenced by a number of macroeconomic factors such as technological advances, government regulations and changes in customer habits. These developments will reshape the product range, while the stricter environmental regulations will force manufacturers to adopt a more sustainable approach. Furthermore, consumers are placing increasing importance on the aesthetics and the long-term performance of products, and this is driving the demand for bespoke solutions that match the latest design trends. These trends are of strategic importance to market players as they not only influence the product development and marketing strategies, but also the competitive positioning in a rapidly changing market.

Top Trends

1. Sustainability and Eco-Friendly Products
   The demand for paints and lacquers that are in harmony with nature and which do not pollute the environment is growing at an ever increasing rate. Companies are investing in low-VOC and water-based paints. AkzoNobel is at the forefront of this trend, having launched a range of sustainable products. It is anticipated that this trend will increase brand loyalty and attract the interest of the ‘green’ consumer, with the result that product lines will be re-defined.
2. Technological Advancements in Coatings
   A few new paints, such as self-cleaning and anti-moulding paints, are gaining in popularity. For example, PPG Industries has launched new paints which are more resistant and require less maintenance. These new products not only improve the performance of existing products, but also create new market segments, which force companies to invest in research and development to maintain their competitive edge.
3. Digitalization and E-commerce Growth
   The construction-repaint market is experiencing a shift to digital platforms for sales and customer engagement. Sherwin-Williams has increased its presence on the web, which has resulted in a 30% increase in web sales. This trend is facilitating the streamlining of operations and increasing the reach of the market, thereby requiring traditional players to adapt to the digital transformation.
4. Increased Focus on Aesthetic Appeal
   Aesthetic considerations are becoming more and more important in the choice of paints, with consumers paying particular attention to the color trends and finishes. Asian Paints is reporting an increase in demand for decorative paints, indicating a growing interest in personalizing the home environment. This trend is likely to influence innovation in color palettes and finishes, and thus have an effect on product development strategies.
5. Government Initiatives and Infrastructure Projects
   The repainting business is booming, thanks to government-funded projects like the U.S. government’s Infrastructure for Jobs and Economic Recovery Act. These projects are boosting demand for long-lasting and high-quality paints, as Jotun A/S is seeing in its projects. Such projects will create a stable demand situation, which will benefit companies that operate on a large scale.
6. Rise of Smart Coatings
   A new trend is the development of smart coatings that react to changes in the environment. Axalta is developing a color-changing paint that changes color at different temperatures and that will be very popular with technically advanced consumers. This innovation will open up new opportunities for both the residential and commercial markets and will drive the development of high-tech paint solutions.
7. Health and Safety Regulations
   In the recoat market, the stricter health and safety regulations are influencing the formulations. The paint manufacturers are adapting their products to the new regulations, as is the case with the low-emission products from Kansai Paint. This trend is driving manufacturers to invest in compliance and safety, which may increase operating costs but improve their market position.
8. Global Supply Chain Challenges
   Continuing global disruptions to supply chains are affecting the availability of raw materials for paint products. RPM International is addressing these challenges by diversifying its suppliers and increasing its inventory. This trend is likely to lead to higher production costs and to a greater emphasis on local sourcing as a means of mitigating risk.
9. Customization and Personalization Trends
   SPECIFICATIONS: Paint solutions are increasingly adapted to the specific needs of consumers. The Valspar company offers a matching service for its customers that makes it possible to produce special colors. This trend is expected to drive innovation in products and services, improve customer satisfaction, and influence marketing strategies across the industry.
10. Collaborations and Strategic Partnerships
    Strategic alliances between the major players have become the norm in order to expand the product offering and the reach of the market. With the help of such local partners, Nippon Paint has entered the emerging economies. This trend will lead to a greater degree of innovation and the expansion of the distribution network, which will make the recoat market more competitive.

Conclusion: Navigating the Competitive Landscape Ahead

In 2024, the market for construction paint will be highly competitive and fragmented, with the leading players, both old and new, fighting for market share. The regional trends indicate a growing demand for sustainable solutions, thereby forcing the suppliers to develop and adapt their products. The established players will continue to exploit their brand equity and invest in automation and artificial intelligence to increase efficiency. The new players will focus on gaining a reputation for flexibility and sustainability to appeal to the growing number of consumers with an environmental conscience. During the development of the market, the ability to integrate advanced technology and sustainable practices will be crucial for the suppliers who want to maintain a leading position. The decision-makers must therefore prioritise these capabilities to take advantage of the emerging opportunities and navigate the complexity of the market.