STATISTICS
Statistics
2018 statistics show a mixed picture for sales, as raw material prices continue to rise, for a third year running.
BCF’s statistics for 2018
showed a mixed picture for
sales with better news in the
decorative paint and woodcare
markets but with industrial
coatings reporting a setback
compared with the strong
growth seen in the previous
year. For printing inks, the shift
away from printed publications
has continued although the
packaging sector is generally
holding up well. In the
wallcoverings market, despite
continuing acclaim for new
designs, the sector has been
hit hard by restructuring in the
DIY sector.
On the cost side, continued
increases in raw material
prices have weighed heavily
on manufacturers with raw
material prices up by about
7% for 2018 as a whole on
top of a similar increase in the
year before. Some individual raw
materials have shown much higher
increases than this.
Source: BCF raw materials
price survey
7%
Average increase
in 2018
Estimated % changes in
average purchase prices in
the last 12 months
For decorative paint, the year 2018 started well but the poor weather
in February and March had a major negative impact contributing to a
very weak first-half 2018. Market conditions improved significantly from
June onwards while the final quarter of the year ended on a positive
note with the first few months of 2019 also seeing some welcome
growth. The trade sector was again lacklustre falling by 0.8% in 2018 but
by the end of the year retail was showing the best outcome for 6 years.
There was good news for companies in woodcare from May 2018
onwards with the hot dry summer providing a major boost on the
depressed 2017 performance.
On the industrial coatings side of the industry, sales of marine coatings
had a bad year while our bellwether category of ‘all other industrial
coatings’ also showed a decrease being down nearly 5%. The best result
was for high performance coatings which increased 8% in 2018.
BCF ANNUAL HANDBOOK 2019/20
In total, sales of industrial
coatings in the UK market
fell nearly 3% in 2018
following a 5% improvement
in the previous year.
More recent figures for 2019
indicate a modest increase
with total volume up about
2.5% in the first quarter.
In the printing inks sector, UK
sales fell 5.5% in 2018 being
similar to the decrease seen
in 2017.
Publication inks fell in line
with expectations mirroring
the decline in newspaper
and magazine sales and
the continued move to
electronic media. Packaging
inks held up better but by
the second-half of the year
slower economic growth
began to take a toll in this
market as well both in the
UK and throughout Europe.
By Q4 2018, 9 of the top 10
European markets were reporting lower sales with only Russia showing
an increase according to the latest EuPIA statistics.
It was a difficult year for the wallcoverings sector as the first half of
2018 saw sales fall by over 20% compared to the previous year. The
overriding factor in this decline was the well-known problems being
experienced by UK retailers in recent years, with the critical DIY
sector reducing orders and closing unprofitable stores. Sales to DIY
superstores fell 28% in the last year resulting in a 15% fall in overall
wallcovering sales.
Results from other major wallcovering manufacturing countries
indicate that the UK is not the only market which has experienced a
downturn with Germany, France and Benelux all seeing significant falls
in the last year. However, on a more positive note, sales to specialist
and independent retailers held up well, and an increase in customers
choosing to purchase online means there are opportunities in the
coming years.
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