VdL: paints, inks and printing inks in the red

At the annual press conference, the VdL presented the current economic figures for the paint industry. Architectural paints and industrial coatings were particularly under pressure. According to Borgholte in Frankfurt am Main, expectations for 2025 remain pessimistic. Additional uncertainties arise from trade and economic policy.

As expected, 2020 was a challenging year for the paint and printing ink industry, with a 4% decline in sales volume to 1.4 million tons. Compared to the previous year, sales fell by almost 3% to EUR 5.9 billion, reported Dr. Harald Borgholte, President of the German Paint and Printing Ink Industry Association (VdL), at the association’s annual press conference. The overall economic weakness is having a significant impact on the coatings and printing inks industry, meaning that the market situation will remain tense in the coming year: the association expects the downward trend to continue and forecasts a 2.5% decline in sales volumes for the market as a whole.

Industrial coatings

The diverse industrial coatings sector is particularly affected by the weakness of the manufacturing industry. The most important customer segment in the industrial coatings sector in 2024 was automotive series production, with sales of EUR 600 million. This was followed by the automotive refinishing sector, with EUR 532 million, and the metal products sector, with EUR 390 million. Domestic demand here has shrunk by 3% in 2024. This is due to the declines in the furniture and wood sector and in general industry. Furniture and wood coatings saw a 7% drop in demand last year, while general industry suffered a 5% decline, reports Borgholte. For 2025, the VdL expects a 1% decline in demand. Only the area of corrosion protection coatings is stable, due to government-funded road and energy projects, and expects a 4% increase in volume.

Architectural paints

The quantities of architectural paints sold fell significantly by 5% in 2024. The reasons for this negative development include declining sales in residential construction. The do-it-yourself (DIY) sector recorded a 4% decline in volume in 2024, while the professional sector even fell by 6%. In view of the continuing difficult situation in the construction industry, a similarly negative picture is emerging for 2025. The VdL predicts a 3% reduction in volumes sold. Accordingly, a recovery in demand for architectural coatings cannot be assumed until 2026, when the economic situation in the construction industry is expected to improve.

Printing inks

In 2024, 177,000 tons of printing inks were sold on the German market, worth EUR 738 million. This represents significant declines of around 2%, which are mainly due to losses in the publication printing sector, while packaging printing grew slightly. The continued decline in publication printing is expected to cause an overall decline of 2% in 2025.
Imports and exports

International trade also developed weakly: in 2024, goods worth EUR 3.6 billion were exported, around 2% less than in the previous year. Revenues from imports fell significantly (-7%). Overall, goods worth EUR 1.3 billion were imported. For 2025, the VdL expects moderate growth in exports, favored by a slight upturn in the economy abroad. Imports are expected to stagnate due to the continuing economic weakness in Germany.

In his analysis, President Borgholte was initially unable to offer much hope of brighter times. The paint and printing ink manufacturers are too dependent on the development of the economy as a whole. Additional uncertainties arise from the announced US tariff increases and the economic policy course of the German government after the recent elections. “Nevertheless, we are celebrating 125 years of the German coatings industry this year. In these decades, our companies have survived much more difficult times. We are therefore confident that we will also master these challenges with resilience and great innovative strength,” said Borgholte, remaining positive.

“We demand a reduction in bureaucracy and an active EU policy” In order to be able to free themselves from economic pressure, a new political mindset is needed, emphasized Dr. Martin Kanert, managing director of VdL, in the political part of the press conference. ”Companies in the paint and printing ink industry are confronted with a plethora of ever more detailed regulations, documentation and reporting requirements. Every year, more resources have to be expended to comply with the legal requirements. In addition, we are concerned that the implementation of existing measures and those to be expected under the announced revision of the chemicals legislation will lead to a further shrinking of the raw materials base.” Meanwhile, however, something is happening in Brussels, and industry is looking hopefully to the EU Commission’s announced Clean Industrial Deal, which aims to take greater account of the needs of companies. They are now also looking eagerly to Berlin. “The VdL has clearly communicated our demands to politicians. Now we hope that a new federal government will tackle the reduction of bureaucracy with determination and proactively contribute to the European legislative process,” Kanert concluded.