Almost two thirds of the European market for industrial wood coatings is concentrated in Western Europe, with the most important national markets being Italy and Germany. José Bettino, Associate Director, IRL

Italy, the largest market for industrial wood coatings, has the world's largest furniture industry, which is also known for the production of high-quality furniture. Italian furniture production contributes significantly to the country's international trade. Germany has the highest demand for furniture in Europe and one of the highest per capita purchase indicators for furniture in the world. This illustrates the large scale of domestic furniture production and the significant contribution of coatings in the domestic wood processing industry.

Many international suppliers of industrial wood coatings recognise the Eastern European market as an outstanding opportunity in the woodworking sector due to the legal, technical traditions and industrial processes in place here, which encourages the slowed-down design of key manufacturers. The Turkish industrial wood coatings market has become one of the fastest growing markets in the region and has grown due to increased consumer spending and construction activity in the country. Trends in the Central European market for industrial wood coatings are largely determined by the development of the largest market in Poland, which accounts for almost 53% of global furniture production. The wood processing industry in the Balkan region, which is based on the utilisation of local forests, also contributes to the local economy and the overall market demand for wood coatings in Central Europe.

Most important systems: polyurethanes and acrylates
IRL's analysis of the market for industrial wood coatings in Europe shows that polyurethanes and acrylates are the two most important types of coating used in the European furniture industry. Together they account for more than a third of the market.

Around half of the industrial wood coatings used in Europe are based on solvent-based systems, followed by water-based technologies. However, there is a clear trend towards more environmentally friendly products such as water-based paints and powder coatings.

Europe 2024
IRL estimates that the European market for industrial wood coatings will have a volume of 6.3 million kg and be worth EUR 3.4 billion in 2024, with an average manufacturer selling price of EUR 5.4 per kg. The largest markets for industrial wood coatings in Europe are Italy, Germany and Poland. Together they represent the majority of the European market, as do other European countries.

Latest market trends
After two years of strong growth in 2021 and 2022, demand for industrial wood coatings in Europe declined in 2023 and is also expected to develop negatively in 2024. This decline is due to lower consumption in Western Europe - in contrast, Eastern Europe recorded a slight increase in demand. However, as the majority of the market is located in Western Europe, this decline outweighed the existing growth in Eastern Europe. In the long term, the market will be influenced by the furniture sector, the construction sector and other industries, particularly in applications such as furniture, joinery products, exterior constructions and parquet/wood flooring. Demand for industrial wood coatings in the most important Western European markets is also heavily dependent on the construction industry.

Prices and market values
The average manufacturer selling price for industrial wood coatings is estimated at EUR 5.4 per kg in 2024. This price is expected to remain stable in 2024 and beyond. The highest prices are expected for Italy, Germany and the United Kingdom.

On average, prices for industrial wood coatings in Western Europe are higher than systems sold in Eastern Europe. This is due to the fact that there is a high demand for high-performance coatings in Western Europe and that there are local manufacturers who know how to sell high-quality products.

The polyurethane base is the most expensive in the entire coatings market. It is followed by polyester and acrylates. Nitrocellulose-based coatings are the cheapest products. Jet-cured coatings are almost half the price of conventional solvent-based systems.

Forecast
Demand for industrial wood coatings in Europe is expected to increase slightly in 2025, driven by stronger demand in Western and Eastern Europe. According to IRL estimates, the most important European economies will show signs of recovery, with the exception of Germany, which may not see a recovery in the coming years.

In the construction sector, several European countries are still expected to see positive production, which could support the market.

The latest IRL data points to a modest increase in GDP in the major European economies in the coming year. The UK market is expected to see a stronger recovery as it was particularly weakened the year before.

For the largest application areas - furniture, joinery, exterior structures and parquet/wood flooring - construction will remain a key influencing factor. IRL expects demand for wood coatings to gradually increase until 2026, before growth stabilises between 2026 and 2029.

Source: farbeundlack.de