Paints and coatings market in Russia: Key insights

Paints and coatings are one of the most dynamic segments of the construction industry in Russia. The market’s growth is promoted by the recent modernization of the construction industry and the growing attention to environmental safety. In recent years, the segment has changed dramatically, driven by global trends as well as the specifics of the modern economy. The following strategy factors can help with marketing paints and coatings in the construction business.

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Factor 1. Growing demand for environmentally friendly products

Today, consumers increasingly make conscious choices of paints and varnishes, paying special attention to their environmental properties. This leads manufacturers to focus on improving their paint and coating formulations, trying to minimize the use of solvents and preservatives. New products are almost odorless; they have low content of VOCs (volatile organic compounds) and are safe to touch when applied to a surface.

Factor 2. Rapid introduction of new materials

The recent circumstances have prompted manufacturers to shift to different raw materials, which are now supplied from India, China, South Korea, Turkey, Saudi Arabia, Malaysia, etc. The challenge is to make products that meet the same standards as the paints and coatings that were previously manufactured from Western components. Essentially, this is the point of innovation: in less than two years, they have to develop products by adding completely new raw materials in formulations they have been using for decades with tested ingredients. Recipes of a dozen new products have been developed to date and the process continues.

Factor 3. Increasing the share of online sales

It has become increasingly common to buy paints and coatings in online stores in recent years, thanks to convenience and the wide variety available. Customers prefer to pick and order online after researching properties and comparing prices. Growing online sales improve competition in the market, which subsequently causes prices to go down. But it should be noted that most products sold online are in finished colors (for example, enamel on rust in black) because paints for interior and exterior works require tinting to a selected shade and usually, this option is only available in offline stores. There are programs helping to choose a color online but one should remember about problem of color rendering on screens. Therefore, it is advisable to order a small test patch for a selected color. Also, paint producers have different tinting pastes and rates. For some saturated colors, paint costs cheaper than tinting; so, calculating the cost of tinting is another important aspect of selling paints and lacquers online.

The Russian coatings market continues to grow and attract both consumers and producers. The growing demand for environmentally safe and high-quality materials, implementation of new technologies and convenient online trading create good prospects for this industry.

Government, industrial production and businesses

Notably, the Russian government offers support to domestic producers of paints and lacquers. There are government programs and grants for the support and development of the Russian coatings industry.

We must mention state procurement as well. Public organizations and government agencies regularly hold tenders for paints and lacquers suppliers for various projects.

There are also state funds that actively support scientific research concerning paints and coatings. The funds finance projects and programs focused on developing and improving the Russian industry.

The state support for domestic paint and coating producers allows them to develop and be competitive in the market, while improving the quality and environmental properties of their products.

By Kirill Kodintsev, Marketing Expert at LINNIMAX RUS

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