Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising videos
- Abbreviations and terms
Executive Summary
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- Shipments fall steadily in 2007-09, but maintenance keeps the market from contracting as much as housing overall
- Further weakness expected in 2010; pent-up demand can build awhile longer
- Paint/wallcovering outperforms other DIY segments in depressed home channel market
- Ceramic tiles and wall paneling compete with more traditional paint and wallpaper
- Shipments and trends in major segments
- Home centers/lumberyards remain dominant retail channel, but see declines since 2006
- Retailers compete heavily in the paint segment, show mixed results
- Home ownership and real estate transactions drive painting/wallcovering activity
- Ongoing need for maintenance, “cocooning” and product innovations do propel some sales
- Consumer concerns with chemicals, “green” building codes and legislation all drive interest in low/no-VOC paints
- Major acquisitions change global supply structure
- All nine major U.S. paint suppliers post sales declines in 2009
- Wallcoverings receive limited advertising compared to robust campaigns of paint companies
- Major themes in TV advertising of major paint companies
- Branding showcases beauty, performance, durability and innovations; includes private labels and licensing
- Innovators/Innovations in “green” products and other areas
- Consumer findings
- Incidence of painting and other wallcovering, trended data stable
- Rooms redecorated
- Reasons for redecorating… or failing to do so
- Wallcovering application, removal and spending
- Home centers have dominant role as retailers
- Brands for interior paint, exterior paint and stains
- Variations seen on basis of race/Hispanic origin
Insights and Opportunities
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- “Value” a key area of focus in the current economic environment
- Deeper investment in promoting “green” products
- Showcase aspirational side of “green” living with gamut of colors and creative possibilities
- Professional paint services for aging Boomers, women and Asians
- “Trend-setting” multi-ethnic consumers warrant focus with designer brands, home improvement shows and fashionable wallcoverings
Inspire Insights
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- Customization
- What’s it about?
- What we’ve seen
- Implications
- Color-Changing Home Appliances
- Changing the look of home
- Gazing at the Stars in your Bedroom
- You are in control
- Rediscovering Arts in the Downturn
- Good for you and for everyone
- No Boundaries
- Many Mes
- Holiday as Luxury
Market Size and Forecast
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- Key points
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- Figure 1: Total manufacturer shipments of interior and exterior paint, at current prices, 2004-12
- Figure 2: Total manufacturer shipments of interior and exterior paint, at inflation-adjusted prices, 2004-12
Competitive Context
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- Key points
- Broader downturn drives declines in home channel market
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- Figure 3: Total home channel retail sales*, at current prices, 2003-08
- Figure 4: Total home channel retail sales, at inflation-adjusted prices, 2003-08
- As consumers cut back, painting and redecorating competes with other household projects
- Wall paneling and ceramic tiles offer competition, especially at the high end
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- Figure 5: Home improvement/decorating projects undertaken by self or professional in the past two years, December 2009
- Drop in ceramic tile usage in 2007-08 suggests paint offers appealing, cheaper alternative
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- Figure 6: Total U.S. usage of ceramic tiles, in thousands of square feet, 2003-08
Overall Segment Performance
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- Key points
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- Figure 7: Manufacturer shipments of architectural paints and coatings, by type, 2007 and 2009
Segment Performance—Interior Paint
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- Key points
- All interior paint
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- Figure 8: Manufacturer shipments of interior architectural paints and coatings, 2004-12
- Interior water-based paints
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- Figure 9: Manufacturer shipments of interior water-based architectural paints and coatings,
- Interior solvent-based paints
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- Figure 10: Manufacturer shipments of interior solvent-based architectural paints and coatings,
Segment Performance—Exterior Paint
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- Key points
- All exterior paint
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- Figure 11: Manufacturer shipments of exterior water-based architectural paints and coatings, 2004-12
- Types of exterior water-based paints
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- Figure 12: Manufacturer shipments of exterior water-based architectural paints and coatings,
- Types of exterior solvent-based paints
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- Figure 13: Manufacturer shipments of exterior solvent-based architectural paints and coatings, by type, 2007 and 2009
Retail Channels
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- Key points
- Broader home channel sales by retail channel, 2006-08
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- Figure 14: U.S. home channel sales*, by select retail channels through which paint/wallcovering is sold, 2006-08
- Trended data show significant shifts in retail choices seen
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- Figure 15: Trended purchase source for paint and wallcoverings project supplies, 2003-09
- Home improvement stores
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- Figure 16: Revenues for the three largest home improvement chains, 2006-09
- Department stores/mass merchandisers
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- Figure 17: Home improvement revenues for Sears and Walmart, 2006-08
- Hardware stores
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- Figure 18: Membership and revenues for leading hardware buying cooperatives, 2008 and 2009
- Paint and wallcovering specialty stores
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- Figure 19: Number of stores and annual sales for leading specialty paint/wallcovering retailers, 2006-08
- Online retailing
Market Drivers
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- Key points
- Home ownership and the real estate market
- Homeowners more likely to paint
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- Figure 20: Undertook painting, wallcovering or installed siding in the last 12 months, April 2008-June 2009
- Moving into a new home or preparing one for purchase motivates painting/redecorating
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- Figure 21: Reasons for undertaking home improvement/redecorating projects, by age, December 2009
- Housing market falls from 2006-09
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- Figure 22: Sales of existing and new single-family homes, 2001-09
- Ongoing need for maintenance in aging housing stock and foreclosed properties
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- Figure 23: Foreclosure filings, by percentage of U.S. housing units, 2006-09
- “Cocooning” offers an upside to the downturn
- Innovative products, new colors and designs also boost demand for paint and wallcovering
- Green movement, DIY stores and shows, building standards and legislation drive demand for low-VOC paints
- Consumer concern with the environment in general and chemicals in the home in particular
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- Figure 24: Influence of green factors in purchasing of green varnish/paint, 2008 and November 2009
- “Green” buildings and products showcased in stores and in DIY programs
- New building standards and green certification programs drive demand for low-VOC paints
- Legislation also supports demand for low-VOC paints
- Innovations also improve quality and reduce cost of eco-friendly paint options
Leading Companies
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- Key points
- Leading global suppliers of paint and coatings
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- Figure 25: Annual coatings sales revenues for top 15 largest global coating suppliers, 2006 and 2008
- Profiles of leading suppliers with significant presence in U.S. paint market
- AkzoNobel
- PPG Industries
- Sherwin-Williams
- RPM
- Valspar
- Masco
- Benjamin Moore
- Dunn-Edwards
- Kelly-Moore
- Wallcovering Companies
- Blue Mountain Wallcoverings
- Blonder Home
- York Wallcoverings
Brand Qualities
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- Key points
- AkzoNobel’s Revamped Glidden brand emphasizes inspiring confidence and helping launch projects
- PPG’s brands (Olympic, Pittsburgh Paints, Porter) showcase tradition, durability and eco-friendliness
- Sherwin-Williams combines retro label with modern looks, user-friendly tools
- RPM’s brands (Rust-Oleum, Zinsser, NanoShield) highlight quality, innovation and functionality
- Valspar’s brands range from a nostalgic and traditional to hip and carefree
- Masco showcases performance and innovation with Behr brand
- Benjamin Moore offers long tradition and eco-friendly identity
- Kelly-Moore showcases expertise, hands-on approach and personal service
Innovation and Innovators
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- Key points
- Innovators in green products, practices and promotion
- Benjamin Moore offers patented system to bring range of colors to no-VOC paints
- Kelly-Moore boasts “green business” designation, recycled and low-VOC paints
- Sherwin-Williams offers GreenSure designation and expanded green paint selection
- PPG showcases green products with dedicated website, “ecological” logo and sponsorships
- Other areas of innovation in paint, primers and coating products
- Low-VOC self-priming paints with wide color range in premium lines
- Products that help reduce household odors and block stains
- Paints with reduced drying time
- Paints formulated to work on a range of surfaces
- Paint offering greater coverage and thus higher value
- Innovations in branding and marketing strategies
- AkzoNobel undertakes major overhaul of Glidden consumer brand and launches Glidden Professional brand
- Benjamin Moore offers iPhone application for matching color and finding stores
- In wallcoverings, York Company spearheads innovation in design, licensing and appliqués
Advertising and Promotion
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- Overview and key points
- Olympic showcases value of home and family
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- Figure 26: Olympic, 2009
- Glidden hones in on independent, single women
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- Figure 27: Glidden, 2009
- Valspar and Benjamin Moore highlight beauty and color with artistic ads
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- Figure 28: Valspar, 2009
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- Figure 29: Benjamin Moore, 2009
- Behr showcases qualities of new, innovative product line
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- Figure 30: Behr, 2009
- Sherwin-Williams addresses a variety of consumer needs
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- Figure 31: Sherwin-Williams, 2009
- Private label brands
- Licensed brands
- Websites of major paint and wallcovering suppliers
Incidence of Painting and Other Wallcovering
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- Key points
- Interior wall-painting most popular DIY project
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- Figure 32: Home improvement/decorating projects undertaken by self or professional in the past two years, December 2009
- DIY painting and decorating activity highest among those aged 18-44
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- Figure 33: Home improvement/decorating projects undertaken by self in the past two years, by age, December 2009
- In hiring professional help, more parity seen across age brackets
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- Figure 34: Home improvement/decorating projects undertaken by hired professional in the past two years, by age, December 2009
- Income drives painting and decorating activity
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- Figure 35: Home improvement/decorating projects undertaken by self in the past two years, by household income, December 2009
- Trended data show no significant drop in painting from 2007-09
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- Figure 36: Trended incidence of interior and exterior painting, 2003-09
Rooms Redecorated
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- Key points
- Younger DIYers more active, paint and paper more rooms
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- Figure 37: Rooms decorated, by age, December 2009
- Income drives number of spaces that are painted or redecorated
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- Figure 38: Rooms decorated, by household income, December 2009
Reasons for Redecorating
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- Key points
- Replacing old paint/paper is prime reason, though 18-44s also seek new looks and style
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- Figure 39: Reasons for undertaking home improvement/redecorating projects, by age, December 2009
- With increased income, seeking new looks and using DIY shows for ideas increases
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- Figure 40: Reasons for undertaking home improvement/redecorating projects, by household income, December 2009
Reasons for Not Redecorating
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- Key points
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- Figure 41: Reasons for not undertaking painting/wallcovering, by gender, December 2009
Wallpapering
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- Key points
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- Figure 42: Wallpapering application and preparation, December 2009
Place of Purchase
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- Key points
- Home centers are dominant retailers for supplies
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- Figure 43: Retailers used for painting/wallcovering products, by gender, December 2009
- 18-44s shop at greater range and number of retailers
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- Figure 44: Retailers used for painting/wallcovering products, by age, December 2009
- Upper-income HHs show highest use of specialty paint stores and remodeling stores
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- Figure 45: Retailers used for painting/wallcovering products, by household income, December 2009
Paints and Stains: Brands
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- Key points
- Interior paint brands
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- Figure 46: Brand of interior paint used for those who painted in the last 12 months, April 2008-June 2009
- Exterior paint brands
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- Figure 47: Brand of exterior paint used for those who painted in the last 12 months, April 2008-June 2009
- Brands of staining products
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- Figure 48: Brand of stain used for those who did interior/exterior staining in the last 12 months, April 2008-June 2009
Race and Hispanic Origin
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- Key points
- Blacks undertake the least painting/decorating, Hispanics the most
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- Figure 49: Home improvement/decorating projects undertaken by self in the past two years, by race/Hispanic origin, December 2009
- Asians show strongest use of professional services
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- Figure 50: Home improvement/decorating projects undertaken with hired help in the past two years, by race/Hispanic origin, December 2009
- Blacks and Hispanics show higher interest in matching furniture/décor and in ideas from DIY shows
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- Figure 51: Reasons for undertaking home improvement/redecorating projects, by race/Hispanic origin, December 2009
- Hispanics use the greatest range and number of retailers
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- Figure 52: Retailers used for painting/wallcovering products, by race/Hispanic origin, December 2009
Cluster Analysis
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- DIY Remodelers
- Who they are
- Opportunity
- Remodelers Who Hire
- Who they are
- Opportunity
- Savers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 53: Paint and wallcoverings clusters, December 2009
- Figure 54: Home improvement/decorating projects undertaken (self or other person in household) in the past two years, by paint and wallcoverings clusters, December 2009
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- Figure 55: Home improvement/decorating projects undertaken (hired someone to do it) in the past two years, by paint and wallcoverings clusters, December 2009
- Figure 56: Rooms decorated, by paint and wallcoverings clusters, December 2009
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- Figure 57: Self-designated identity of consumers who have undertaken home improvement/decorating, by paint and wallcoverings clusters, December 2009
- Figure 58: Reasons for undertaking home improvement/redecorating projects, by paint and wallcoverings clusters, December 2009
- Cluster demographics
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- Figure 59: Paint and wallcoverings clusters, by gender, December 2009
- Figure 60: Paint and wallcoverings clusters, by age, December 2009
- Figure 61: Paint and wallcoverings clusters, by income, December 2009
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- Figure 62: Paint and wallcoverings clusters, by race, December 2009
- Figure 63: Paint and wallcoverings clusters, by Hispanic origin, December 2009
- Cluster methodology
Custom Consumer Groups
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- Key points
- Self-designated groups have different demographic profiles
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- Figure 64: Self-designated identity of consumers who have undertaken home improvement/decorating, December 2009
- Expert DIYers and trendsetters show the highest painting/decorating levels
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- Figure 65: Home improvement/decorating projects undertaken in the past two years, by self-designated identity, December 2009
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- Figure 66: Rooms decorated, by self-designated identity, December 2009
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- Figure 67: Reasons for undertaking home improvement/redecorating projects, by self-designated identity, December 2009
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- Figure 68: Reasons for undertaking home improvement/redecorating projects, by self-designated identity, December 2009
Appendix: Other Useful Consumer Tables
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- Use of professional help highest for those with HH income of $75K+
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- Figure 69: Home improvement/decorating projects undertaken with hired help in the past two years, by household income, December 2009
- Men more likely to find inspiration in DIY TV shows
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- Figure 70: Reasons for undertaking home improvement/redecorating projects, by gender, December 2009
- Over-65s least likely to perceive need to paint
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- Figure 71: Reasons for not undertaking painting/wallcovering, by age, December 2009
- Cost and not being allowed to paint are significant barriers to redecorating for lower-income HHs
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- Figure 72: Reasons for not undertaking painting/wallcovering, by household income, December 2009
- Amount spent on wallpapering
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- Figure 73: Amount spent on wallpapering, by those who wallpapered in the last 12 months, April 2008-June 2009
- Simmons data on painting/wallcovering and the types of paint used for specific tasks
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- Figure 74: Undertook painting, wallcovering or installed siding in the last 12 months, April 2008-June 2009
- Interior painting
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- Figure 75: Type of interior paint used by those who painted in the last 12 months, April 2008-June 2009
- Exterior painting
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- Figure 76: Type of exterior paint used by those who painted in the last 12 months, April 2008-June 2009
- Staining
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- Figure 77: Type of staining used in the last 12 months, April 2008-June 2009
- Demographic profiles of self-designated groups
- Value-conscious consumers
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- Figure 78: Profile of value-conscious consumers, December 2009
- Environmentally-conscious consumers
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- Figure 79: Profile of environmentally conscious consumers, December 2009
- Home entertainers
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- Figure 80: Profile of at-home entertainers, December 2009
- Expert or very active home remodelers
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- Figure 81: Profile of expert or very active home remodelers, December 2009
- Trendsetters
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- Figure 82: Profile of trendsetters, December 2009
Appendix: Trade Associations
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