Paint Market Reflections from The Albany Group

The Irish decorative paints market continues to perform well against a backdrop of tightening consumer expenditure and general market uncertainty over the past 18 months where high inflation and rising interest rates led to demand contraction and weakening consumer confidence in the economy at large. Padraic McGuinness, Business Development Manager for The Albany Group with a retail network across Ireland, is at the coalface of these market dynamics and is in a strong position to observe trends and market conditions in the Irish paint industry given its store network, of 28 outlets, and its customer base
covering both retail and trade market segments.

Padraic says “Last year (2023) saw a continued softening in DIY footfall and turnover following a few very exceptional years where a major spike in home improvement occurred in response to pandemic lockdowns and travel restrictions. Price inflation over the post pandemic period continued to present
demand pressures into 2023. Volumes rather than values show the variation in performance of the sector more accurately.

While volumes are somewhat back from the peak they are still significantly ahead of pre pandemic volumes showing a general trend of growth in the paint and decorating marketplace.“

“The current year has had a slower start than average years mainly due to poor weather throughout March and April. However, a strong uplift in exterior paint and woodcare sales has been noticeable since the May bank holiday weekend.”

“New house builds and renovation projects continue to drive activity and the continued high participation rates in decorating. Trade professionals are tending to keep full order books for domestic and commercial projects alongside an increase in DIY due to difficulties in securing decorators.”

“Also, a greater spend per project is observable in general with consumers trading up and seeking more customised décor solutions rather than budget driven décor projects. This trend is most evident in higher performance and higher value brands and where successful product innovation and differentiation has been implemented by manufacturers. In particular, strong colour display and colour samples are a leading factor in consumer choice for one brand over another as well as packaging and design and good quality product information. Competition among brands has intensified as wider distribution and global supply chains have facilitated new brands especially in niche categories entering the marketplace.”

Service has also become a much more important aspect of the paint market whether its colour consultancy for the retail customer or project specification for a commercial client. Padraic also suggests “This trend is a promising indicator for the decorating market in that it shows a greater propensity from both retail and trade customers to decorate more often. It also shows a greater degree of consumer confidence in making expenditure decisions relating to the home and they are actively seeking out premium products and colour and design advice”.