Peeling off: Revenue falls as demand from painting and decorating services declines

The performance of the Decorative and Specialty Paint Manufacturing industry over the past five years has been influenced by a range of cyclical variables. The industry mainly relies on demand from households, as well as from painters and decorators. Demand from these markets usually occurs when a newly constructed dwelling needs to be painted or when a property changes ownership. Yearly changes in activity levels in Australia's residential construction sector and renovation markets often filter upstream, influencing demand patterns for the architectural and decorative (A&D) paints produced by the industry. Another variable that influences industry performance is consumer sentiment...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
1.7%
Forecast Growth 17-22
Profit
Employment
4,005
Businesses
461

Industry Threats & Opportunities

  • Increased buying power of retail chains such as Bunnings has constrained industry profitability
  • Weaker demand for industry products will reduce profitability over the next five years
  • Industry Report - Industry Investment Chapter

    As with the global paint and coatings sector, the Decorative and Specialty Paint Manufacturing industry exhibits low capital intensity. IBISWorld estimates that the industry spends $8.61 on wages for every dollar invested in capital. The relatively labour-intensive nature of the industry is due to manufacturing processes largely being semi-automated rather than fully automated. However, capital intensity has increased over the past five years. Industry operators have adopted measures to improve efficiency in a highly competitive market, particularly in investing in dispersion tanks as the industry increasingly manufactures water-based paints rather than solvent-based paints. This has extended to smaller operators that need to lower their costs to compete with large-scale operators...purchase to read more.

    Additional Insights for the Decorative and Specialty Paint Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Decorative and Specialty Paint Manufacturing Industry are

  • Establishment of brand names
  • Having contacts within key markets
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Demand from painting and decorating services and Consumer sentiment index in the Decorative and Specialty Paint Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Decorative and Specialty Paint Manufacturing Industry?

    Companies operating in the industry primarily manufacture decorative paints. This includes architectural paints used by households, DIY enthusiasts and some commercial operators. The industry also manufactures specialty paints, such as artists’ colours and casein paints.

    Industry Products
  • Exterior decorative paints
  • Interior decorative paints
  • Specialty paints
  • Industry Activities
  • Decorative paint
  • Architectural paint
  • Artists' colours
  • Casein paints
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from painting and decorating services
  • Consumer sentiment index
  • Dwelling commencements
  • Number of housing transfers

  • Current Performance
  • Industry participation
  • Industry profitability
  • Housing market
  • Import competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Industry profitability
  • Housing market
  • Table: Decorative and Specialty Paint Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Decorative and Specialty Paint Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Painting and Decorating Services
  • Hardware and Building Supplies Retailing
  • Hardware Wholesaling

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Basic Organic Chemical Manufacturing

  • Products & Services
  • Interior decorative paints
  • Exterior decorative paints
  • Specialty paints
  • Chart: Decorative and Specialty Paint Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Retailers
  • Exports
  • Chart: Major Market Segmentation for the Decorative and Specialty Paint Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Decorative and Specialty Paint Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Decorative and Specialty Paint Manufacturing Industry

  • Industry Globalization
    DuluxGroup Limited, Valspar (Australia) Paint Acquisition Pty Ltd, PPG Industries Australia Pty Ltd,
  • Table: DuluxGroup Limited - financial performance
  • Table: Valspar (Australia) Paint Acquisition Pty Ltd - financial performance
  • Table: PPG Industries Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Decorative and Specialty Paint Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Decorative and Specialty Paint Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    A&D Paint
  • Stands for Architectural and decorative paint and includes both water and solvent based interior and exterior paints.
  • Big-Box Stores
  • Warehouse-style retail outlets that offer a diverse range of products.
  • Do-It-Yourself (Diy)
  • Renovations and refurbishments completed by homeowners rather than by hired skilled tradespeople.
  • Volatile Organic Compounds (Vocs)
  • Organic chemicals that have a high vapour pressure at room temperature. VOCs that are used in paint production can be environmentally harmful.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Decorative and Specialty Paint Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Decorative and Specialty Paint Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Decorative and Specialty Paint Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Decorative and Specialty Paint Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear