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Market overview: Industrial wood coatings
Nearly two-thirds of the European market for industrial wood coatings are concentrated in Western Europe, with Italy and Germany being the most important national markets. José Bettino, Associate Director, IRL
Italy, the largest market for industrial wood coatings, has the world’s largest furniture industry and is renowned for the production of high-quality furniture. Italian furniture production makes a significant contribution to the country’s international trade. Germany has the highest demand for furniture in Europe and one of the highest per-capita purchase indicators for furniture worldwide. This highlights the large scale of domestic furniture production and the significant role coatings play in the domestic wood processing industry.
Many international suppliers of industrial wood coatings see the Eastern European market as an outstanding opportunity in wood processing, as legislative frameworks, technical traditions and industrial processes remain in place, supporting the established designs of major manufacturers. The Turkish market for industrial wood coatings has developed into one of the fastest-growing in the region, driven by rising consumer spending and construction activity. Trends in the Central European market for industrial wood coatings are largely shaped by developments in the largest markets in Poland, where almost 53% of the country’s furniture production is exported worldwide. The wood processing industry in the Balkan region, based on the use of local forests, also contributes to the local economy and to overall demand for wood coatings in Central Europe.
Key systems: polyurethanes and acrylics
IRL estimates that the European market for industrial wood coatings will reach a volume of 630,000 tonnes and a value of EUR 3.4 billion in 2024, with an average manufacturer selling price of EUR 5.4 per kg. The largest markets for industrial wood coatings in Europe are Italy, Germany and Poland. Together they represent the majority of the European market, along with other European countries.
Europe 2024
IRL estimates that the European market for industrial wood coatings will reach a volume of 630,000 tonnes and a value of EUR 3.4 billion in 2024, with an average manufacturer selling price of EUR 5.4 per kg (Fig. 2). The largest markets for industrial wood coatings in Europe are Italy, Germany and Poland. Together they represent the majority of the European market, along with other European countries.
Recent market trends
Following strong growth in 2021 and 2022, demand for industrial wood coatings in Europe declined in 2023 and is expected to fall again in 2024. This downturn is due to lower consumption in Western Europe – in contrast, Eastern Europe recorded a slight increase in demand. However, as the majority of the market is located in Western Europe, the decline outweighed growth in the east. The market is influenced in the long term by the furniture sector, construction and other industries, particularly in applications such as furniture, joinery products, exterior structures and parquet/wood flooring. Demand for industrial wood coatings in major Western European markets is also heavily dependent on the construction industry.
Prices and market values
The average manufacturer selling price for industrial wood coatings in 2024 is estimated at EUR 5.4 per kg. This price is expected to remain stable in 2024 and beyond. The highest prices are expected in Italy, Germany and the United Kingdom.
On average, prices for industrial wood coatings sold in Western Europe are higher than those in Eastern Europe. This is due to the higher demand in Western Europe for high-performance coatings and the presence of local manufacturers able to sell high-quality products.
Polyurethane-based coatings are the most expensive in the overall coatings market, followed by polyesters and acrylics. Nitrocellulose-based coatings are the cheapest products. Radiation-cured coatings are almost twice as expensive as conventional solvent-based systems.
Forecast
In 2025, demand for industrial wood coatings in Europe is expected to increase slightly, driven by stronger demand in both Western and Eastern Europe. According to IRL estimates, the major European economies will show signs of recovery, with the exception of Germany, which may not see a rebound in the coming years.
In the construction sector, several European countries are expected to maintain positive production levels, which could support the market.
Recent IRL data indicate a modest rise in GDP in the main European economies in the coming year. The UK market is expected to recover more strongly, having been particularly weak in the previous year.
For the largest application areas – furniture, joinery, exterior structures and parquet/wood flooring – construction will remain a key driver. IRL expects demand for wood coatings to gradually increase until 2026, before growth stabilises between 2026 and 2029.
