Russian Market of Finishing Materials: Recovering
Since 2020, the Russian finishing materials market has experienced several cycles of growth and decline. The coronavirus pandemic and sanctions that followed have been followed by positive dynamics, including due to pent-up demand. After a recession in spring 2022, the market has gradually begun to recover
The demand for finishing materials is growing
According to the PKR (Investment and Analytical Agency) study, the total volume of the Russian DIY market in 2022 reached 2 trillion rubles. Of these, according to Tebiz Group, wallpaper accounts for about 45 billion rubles, and for paints and varnish products – more than 250 billion rubles.
Since the beginning of 2022, the finishing materials market has seen several multidirectional trends. Thus, the demand for wallpapers following the results of the past year decreased by 3% in monetary terms and by 19% in quantitative terms. Market experts attribute this trend not only to the stagnation of incomes of individuals and legal entities in Russia and a decrease in the number of real estate transactions, but also to the growing popularity of other finishing materials: paints, decorative stone and plaster, flock coatings and MDF panels.
At the same time, the situation in the paints market was somewhat different from the wallpaper segment. The total decrease in paints sales in 2022 compared to 2021 was 9% in quantitative terms, while in monetary terms sales increased by 25%.
At the same time, since the end of last year, the demand for finishing materials has been gradually recovering. According to the VseInstrumenty.ru portal, in January of this year, the demand for finishing materials increased almost 4 times: in Moscow and St. Petersburg it exceeded 200%, in the largest cities (Moscow, St. Petersburg, Novosibirsk and Chelyabinsk) it increased by 200%, and in Yekaterinburg - by almost 300%. The list of the most popular finishing materials includes paints and enamels. In the spring, this trend continued. Thus, in May of this year, according to experts from VseInstrumenty.ru, wallpaper sales in the Russian Federation increased by 22% compared to the same period last year. At the same time, in some regions there is a significant increase in demand for wallpaper: for example, in Nizhny Novgorod it increased by 243%, and in Perm - by 157%. A similar trend is recorded in relation to paint and varnish products: in May this year, its sales increased by 86%. Demand increased the most in Krasnodar (+152%) and Chelyabinsk (+123%).
It's interesting that this year one can observe a change in the target audience that purchases finishing materials. While in 2022 the demand was mainly driven by developers striving to complete their projects, then this year, according to the market players’ data, the number of customers that purchase materials for apartment or private housing repairs has increased by a third. There are two reasons: gradual stabilization of prices due to the growth in the local production of materials and the adaptation of consumers to the new reality. According to a study by the NAFI analytical center, today Russians most often rationally approach the choice of finishing materials: they pay attention to durability, product layout, material and cost, but attention to the manufacturer and brand popularity among Russian citizens, on the contrary, is declining.
It's worth mentioning that in 2022 the geography of finishing materials’ imports significantly changed. Until February 2022, Germany, Italy, Spain, Finland, and France were among the biggest importers. Now China, Turkey, India, and Belarus constitute most imports. Following the backdrop of growing demand and increasing construction rates (+3–5% annually), new market players have good prospects to fill vacated niches: for example, high-quality wallpapers or paints previously supplied by European manufacturers.
Exhibiting at MosBuild 2024 is an effective opportunity to showcase your products
Finishing materials are of great interest to MosBuild visitors. In 2023, the exhibition was attended by 80,696 specialists, 39,044 visitors out of the total amount were interested in the Finishing Materials sector. It constitutes one half of the total number of visitors to the show. The sector audience includes representatives of wholesale and retail trade (11,953 visitors), architectural and design bureaus (11,471 visitors), 7,538 visitors represented construction companies, 2,486 visitors – building and finishing materials’ producers.
Finishing Materials sector at MosBuild includes several sections: Wallpaper, Paints and Decorative Plasters, Panels, Moldings, Wall and Ceiling Stucco. At MosBuild 2023, 19,252 visitors (24%) were interested in wallpapers, 19,002 (24%) in paints and plasters, 15,481 (19%) in panels, moldings and stucco.
- 8,046 interior designers and architects were interested in purchasing wallpaper, 7,662 – in paints and plasters, 6,964 – in panels, moldings and stucco.
- 3,385 retailers were interested in wallpapers, 2,625 in paints and plasters, and 2,359 in panels, moldings and stucco.
- 2,917 construction and renovation specialists were interested in paints and plasters. 2,685 specialists came for wallpapers; 2,288 visitors – forpanels, moldings and stucco.
- Representatives of wholesalers were also interested in paints and plasters (1,922), wallpapers (1,648), panels, moldings and stucco (1,226).
At MosBuild, finishing materials’ manufacturers and suppliers present wallpapers, murals, mosaics, wallpaper printing materials and equipment, decorative plasters, paints, painting and plastering tools, varnishes, enamels, moldings, interior moldings, ceiling finishing materials, wall decorative panels and much more.
The representative cast of visitors allows the MosBuild exhibitors to comprehensively solve their business purposes. First, find new customers and partners: more than half of the visitors influence the company's purchases. Secondly, study the offers of competitors and analyze the situation on the market and the competitiveness of their products. Thirdly, to announce new products and demonstrate them to professional audience.
Your company can also present wallpapers, paints, decorative plasters, panels, moldings, wall and ceiling moldings, and other products to the MosBuild visitors. MosBuild 2024, the 29th International Building and Interiors Exhibition, will be held on May 13–16, 2024 in Moscow (Crocus Expo IEC).