The paint market in the fourth quarter of 2024 presented a mixed bag of performance indicators, reflecting the broader trends in the construction industry and consumer behaviour.

Trade paint ended the year with a -1.6% decline compared to 2023. This downturn was largely attributed to the continued low activity in new house builds, which has been a drag on the market for the past two years. The anticipation, however, is that activity will pick up in the second half of the year, with Glenigan data showing a one-third increase in planned housing project starts.

The masonry market stood out with a robust +7% year on year growth. However, this positive trend was offset by challenges in the emulsion market, particularly in quarter two, where reduced new house building led to a shortfall in volumes. As new build activities increase, the expectation is that the emulsion market will see corresponding improvements.

In contrast, premium product volumes continued to grow, outperforming the broader market. This segment remains resilient, driven by uses in RMI (Repair, Maintenance, and Improvement) projects in both commercial spaces like hotels and in domestic dwellings. This resilience underscores the ongoing consumer demand for higher-quality paint products, even in a challenging market environment.

Looking forward, there are promising signs for the paint market. A recent survey indicated that 75% of Brits plan to spruce up their homes in the new year. This positive sentiment towards home decoration is likely to have a halo effect on total trade paint demand. Additionally, the Construction Products Association (CPA) forecasts growth in the UK construction industry for 2025, which should further support the paint market’s recovery.

In summary, while the paint market faced some headwinds in Q4 2024, the outlook for 2025 appears more optimistic, driven by anticipated increases in construction activities and positive consumer sentiment towards home decoration.