Paints and Varnishes (Russian Market)

2022

Reduction of enamel market volume by 13.4% to 95.3 thousand tons

The volume of the Russian enamel market in 2022 amounted to 95.3 thousand tons, which is 13.4% less than a year earlier. Sales decreased after an increase of 1.9% in 2021 and 6.7% in 2020. This is evidenced by the data of the marketing agency "GuideMarket," which were released in August 2023.

According to analysts, the Russian enamel market at the end of 2022 showed a decline due to several unfavorable economic and political events. Among them are the withdrawal from the Russian market of some large foreign enamel companies, which previously occupied a significant market share (approximately 30%). Also, the dynamics of the market was influenced by anti-Russian sanctions introduced in the spring and summer of 2022, which limited the supply of components for paint and varnish raw materials to Russia.

In previous years, from 2018 to 2021, there was a gradual growth in the market volume, reaching a maximum value of 110.1 thousand tons in 2021.

It is noted that economic instability caused by the aggravation of the geopolitical situation also affected key consumers of enamel in Russia. According to GuideMarket, in 2022 the volume of enamel consumption per person amounted to 0.66 kg, which is 0.09 kg less than in 2021. The market volume in monetary terms at the end of 2022 was estimated at 12.5 billion rubles.

According to the researchers, despite negative factors, the enamel market in Russia in 2022 remained a promising and dynamic segment of industry. Enamel manufacturers should continue to improve technologies and innovations in production, as well as pay attention to the quality and durability of their products in order to meet the increased demand of consumers for high-quality enamel, experts say.^[1]

Sales growth of 3% to 1.99 million tons

In 2022, 1.99 million tons of paints and varnishes were sold in Russia, which is 3% more than a year earlier. In the period from 2018 to 2022. The market volume grew by 21.8%, according to analysts at BusinesStat. Their data was released in June 2023.

According to experts, in 2022, due to the action of long-term investment projects, sales of paints and varnishes grew, despite the crisis changes in the economy. In anticipation of the shortage and rise in prices, consumers carried out additional purchases of paint and varnish products as a stock.

The Russian paint and varnish market is dominated by domestically produced products. For 2018-2022, the share of imports in the sales structure decreased from 30.5% to 17.5%. This was facilitated by the development of domestic production, measures of state support for the industry, the localization of international production enterprises in the country. In 2022, as part of the sanctions, the European Union introduced a ban on the supply of all types of paints and varnishes to Russia. Along with a decrease in supplies from European countries, imports of paints and varnishes from Turkey, China, as well as Kazakhstan and Belarus increased.

From 2018 to 2022 value imports of paints and varnishes to Russia decreased by 14.9%: from $1.39 billion to $1.18 billion. Import turnover increased only in 2021 (+ 14.6% compared to 2020) as a result of an increase in the average price and natural volume of supplies.

The study also says that in 2021, sales of paints and varnishes against expectations did not decrease after a sharp increase in 2020, but remained at the level of 2020. One reason: the record level of housing commissioning in the country. The volume of housing construction in 2021 amounted to 92.6 million square meters. m, which is almost 13% more than in 2020. Demand for housing spurred preferential mortgage programs.^[2]

Notes