Poland
Hungary
Ukraine
In the reported period, the Group’s revenues generated on these three markets accounted for 95.2% of consolidated sales revenues.
95.2 %
the Group's revenues generated on these three markets
During the reporting period in Poland and Hungary the industry still faced problems with rebuilding sales volumes. Nevertheless, the observed declines are lower than those recorded after 2020.
In 2024, the Ukrainian market pressed on with working in demanding war conditions. During this time, the market recorded a quantitative decline in the volume sold, with a simultaneous increase in value terms compared to 2023.
Based on the Group’s internal estimates, the decorative paints market in Poland in 2024 recorded a decline in the volume sold (the lower limit of the single-digit range in percentage terms) while maintaining similar results in value terms year-on-year 1.
The main reasons for this are the slowly recovering purchasing power of consumers in the face of persistently high interest rates and elevated inflation rates. Additionally, there are on-going social concerns about the economic and geopolitical situation, especially the war in Ukraine, and the fact that the Group’s products are not necessities.
The economic situation on the Polish market of paints and agents for wood protection and decoration is also dependent on the consumer sentiment. The situation of the Polish market of paints and wood agents in 2024 was affected by still very low level of consumer confidence. The average level of the Current Consumer Confidence Indicator (BWUK)2 in 2024 was at an average level (-14.0), which remained in an upward trend in the first half of the year, only to record lower values again in the second half of the year. In January 2024, BWUK was at (-12.6), and in December this level was significantly lower (-16.7)3. As in 2023, the Leading Indicator of Consumer Confidence (WWUK) is slightly above BWUK, which means that consumers declared greater optimism as for the next 12 months (2024: -8.7). In the second half of the year, however, the indicator was significantly weaker than the annual average, and the December reading of WWUK was -11.54.
According to the Group’s internal data, similarly to previous years, over 80% of decorative paints were used primarily for renovation or refurbishment of flats5, while – as estimated by the Group – the decision to purchase them was less often related to the need to finish a new flat. Consumers are looking for high-quality products with good coverage properties that can be painted efficiently.
In 2024, no changes occurred among the main players on the Polish market of paints and agents for wood protection and decoration. The entities with the largest shares on the Polish market currently include: Śnieżka Group companies, PPG Deco Polska and AkzoNobel Polska. According to the Group’s estimates, their share in the total sales of decorative products in Poland is over 80% (in value terms).
1 Polish Association of Paint and Adhesive Producers, Results of the decorative paint industry for 2024.
2 The BWUK and WWUK indicators range from -100 to +100. Values above zero indicate an improvement in the economic situation, while negative values indicate a deterioration.
3 Source: Central Statistical Office, Consumer sentiment – December 2024.
4 Ibidiem.
5 Source: Group internal research.
According to the Group’s estimated data, in 2024 the Hungarian market of paints and agents for wood protection and decoration recorded a similar decrease in the volume sold (lower limit of the single-digit range in percentage terms) while maintaining similar results in value terms year-on-year.
In 2024, the industry encountered a number of challenges that are the aftermath of those from previous years, namely: high inflation dynamics, decline in real wages, limited access to financing, general concern about the economic situation and – partly – uncertainty caused by the war in Ukraine.
The main factors influencing the economic situation in the industry in 2024 in the Group’s opinion include: slower than expected economic growth, low level of consumer confidence6, gradually rising real wages and interest rates remaining at a still elevated level but gradually reduced (6.5%)7.
According to the Group’s data, the largest consumption of paints and wood decoration products on the Hungarian market was related to renovation works and refreshing flats and houses. Hungarian consumers, similarly to Polish ones, when choosing products pay attention to ease of painting and good coverage properties8.
The year 2024 did not bring significant changes among major players operating on the Hungarian market. The largest entities operating in Hungary in the segment of paints and products for wood decoration and protection are: Poli-Farbe from the Śnieżka Group, PPG Trilak and AkzoNobel Coatings. Their total market share is estimated at approx. 75% of the entire market (in value terms).
6 Source: Eurostat, Consumer confidence indicator, December 2024.
7 Source: Magyar Nemzeti Bank, Base rate history, December 2024.
8 Source: Group internal research.
According to the Group’s estimates, 2024 was a challenging year for paint and varnish manufacturers in Ukraine and ended with a decline in sales volume (middle limit of the single-digit range in percentage terms) and a simultaneous increase in value terms (middle limit of the single-digit range in percentage terms, in local currency).
The first four months of the year saw high consumer activity. According to information obtained from the Chem-courier agency, in May the situation on the paints and varnishes market deteriorated due to a number of factors:
Another important factor is the operation of enterprises in a high-risk zone for missile attacks.
The biggest players in the production of decorative paints on the Ukrainian market are as follows: Śnieżka-Ukraina, Tikkurila, Meffert Hansa Farben, Henkel, ZIP, DAW, Eskaro, Feidal, Polisan, Olejníkov.
9 Source: Chem-courier, Ukrainian paint and varnish producers are dissatisfied with the start of the painting season, June 2024.
