Romania is slightly below the EU average with an annual consumption of 12.8 kilograms of paint per capita, while the EU average is 13 kg. Netherlands is the top consumer of paint with 19.6 kg per capita, followed by Portugal with 16.4 kg per capita and Spain with 15.8 kg per capita. The lowest consumption of paint is in Greece (10.3 kg per capita) and Bulgaria (8.2 kg per capita), according to market research company Interbiz.
“The renovation area has been extremely busy in 2019, as has new construction. We are taking into account the fact that market must grow year by year. The highest growth on our market comes from office building construction and non-residential building (schools, hospitals, kindergartens, older buildings accommodating various institutions) repairs,” said Daniel Olaeru, national sales manager of Policolor with the Consumers Markets division.
He added retail spaces and investments in hotels have also been growth drivers in recent years.
Policolor-Orgachim had a turnover of EUR64 million in 2018 from the two factories it has in Romania and Bulgaria. According to the latest data, the Romanian business accounts for around 40% of the total.
The decorative paints segment was the most dynamic in recent years, with 86% market share by volume and 63% market share bu value, according to statistical data.
Statistical data also shows 160,000 tons of water-based paints were produced in Romania in 2018, slightly more than in 2017. Domestic sales stood at 131,000 tons, lower than in 2017, and exports decreased as well.
The industry marked a transaction in 2018, when Akzo Nobel bought Fabryo in a EUR50 million deal. Akzo Nobel was present on the local market before the transaction, supplying industrial paints to the Constanta shipyard, wood coatings and decorative paints.
The Fabryo acquisition contributed to the 4% growth in Akzo Nobel’s turnover in 2018. Fabryo reported 10% growth in revenue in the first quarter of 2019, as the Romanian decorative paints market registers annual growth of 4%.
Köber remained the market leader in Romania after a slight growth in turnover in 2018.
The top ten paints manufacturers had a total turnover of RON1.4 billion in 2018, compared with RON1.3 billion in 2017, but most companies also make other construction materials besides paints.