Parquet & Furniture Coatings

Market Overview

Damir Gagro European Coatings JOURNAL

Parquet & Furniture Coatings

Overview of the wood coatings market

Furniture coatings market

Parquet coatings market

2012 Volume by End Use Segment (34 Billion Litres)

2012 Value by End Use Segment (USD 110 Billion)

Source: Orr & Boss

Wood Coatings

Global Coatings Industry 2012 End Use Segments: Volume vs Value

2011 2012 2016f CAGR

Volume (Million Litres)

1,891 2,04 2,505 5.8 %

Value (USD Million)

6,108 6,6 8,504 6.8 %

Average Price USD/Litre

3.23 3.25 3.39 1 %

Wood Coatings

Historical and Forecast Sales of Wood Finishes

Source: Orr & Boss

Wood Coatings

300

310

320

330

340

350

360

Western Europe Eastern Europe

Industrial Wood Coating Market in Europe 2013

355,500 Tonnes

321,500 Tonnes

Source: IRL – Division of BRG (UK) Ltd.

Wood Coatings

2011 2016f

Furniture 60 % 60 %

Cabinets 25 % 25 %

Siding 5 % 5 %

Flooring 5 % 5 %

Paneling < 5 % < 5 %

Others < 5 % < 5 %

Wood Finishes by End Use

Source: Orr & Boss

Wood Coatings

2011 2016f

Waterborne 15 % 20 %

Conventional solventborne 50 % 35 %

High Solid solventborne 20 % 25 %

Powder coatings < 1 % < 1 %

Radiation curing 15 % 20 %

Wood Finishes Volume by Coatings Type (2011, 2016f)

Source: Orr & Boss

Wood Coatings

Furniture in USD (million) Wood and Wood Articles in USD (million)

EU 27 Imports 18,611 10,051

EU 27 Exports 17,243 9,642

EU 27 Balance 1,368 409

Trade Patterns of Wood Products for Europe (2011)

Source: Orr & Boss / Eurostat

Wood coatings

Source: 3P International Coating Consulting

Global furniture market; production by country (EUR 276 billion in 2008)

Furniture Coatings

Domestic

in tonnes

Kitchen

in tonnes

Office

in tonnes

TOTAL

in tonnes

Italy 42,250 17,250 9,500 69,000

Germany 25,000 27,000 15,500 67,500

France 14,500 8,250 9,750 32,500

Poland 19,700 6,500 5,600 31,800

UK 7,400 10,000 7,400 24,800

Spain 14,300 4,300 3,000 21,600

Others 78,600 25,000 24,200 127,800

Total 201,750 98,300 74,950 375,000

Market size for Furniture Coatings in Europe

Tonnes Million Litres

EU27 (plus Norway, Switzerland) 350,000 278

CIS Region & non-EU member states 25,000 19

375,000 297

Main markets for Furniture Coatings in Europe

Source: Irfab Global Industrial Coatings Markets 2010-2020

Furniture Coatings

2K PU coatings 34%

Nitrocellulose coatings

15%

Acid curing 5 %

Unsaturated Polyester

4 %

Waterborne coatings

19%

UV-cured coatings

23%

European Furniture Coatings Market 2011 by Technology

Source: 3P International Coating Consulting

Furniture Coatings

Technology Tonnes

2K PU coatings 110,000

UV curing coatings 75,000

Nitrocellulose coatings 49,000

Waterborne coatings 62,000

Acid curing coatings 16,000

Unsaturated polyester coatings

13,000

European Furniture Coatings Market 2011 by Technology (325,000 Tonnes)

Source: 3P International Coating Consulting

Parquet Coatings

Source: Irfab Global Industrial Coatings Markets 2010-2020

Tonnes

Western Europe 93,500

Central and Eastern Europe 18,000

CIS Region 24,000

Europe (total) 135,500

Site Applied Parquet Coatings

Parquet coatings volumes

***Note***: The figure of 135,500 tonnes of site applied parquet coatings in Europe by Irfarb appears to be too high. According to Irfarb, the figure includes the professional and DIY segment, as well as the sealing and all varnishes that can be used for floorings.

1

Parquet Coatings

Factory Applied Parquet Coatings

UV Coatings 2K polyurethane Total

Tonnes ‘000 litres Tonnes ‘000 litres Tonnes ‘000 litres

EU 27

(inc Norway & Switzerland)

6,100 6,010 300 290 6,400 6,300

CIS Region 375 373 25 22 400 395

Total 6,475 6,383 325 312 6,800 6,695

***Note***: According to Irfarb the global market for floorings amounted to 68,000 tonnes. Asia-Pacific (< 41,000 tonnes), were the main production industry for parquet floorings is located, and the Americas (< 15,000 tonnes) were the largest consumer markets for factory applied parquet coatings. The EMEA region has a share of roughly 9,000 tonnes (the European figures are stated above).

Source: Irfab Global Industrial Coatings Markets 2010-2020

Parquet Coatings

Region Share

Western Europe 79 %

Central and Eastern Europe

66 %

CIS Region 62 %

The overall share of waterborne coatings for installed parquet floors in Europe is 74 %, but there are regional differences:

Coatings for Wood Floors by Technology in Europe

Source: Irfab Global Industrial Coatings Markets 2010-2020

The leading country producers of parquet in Europe: Poland (17.7%), Germany (15.6%) and Sweden (13.3%).

The Nordic region as a whole accounts for over 20% of parquet produced in Europe.

Parquet Coatings

Source: FEP (European Federation of the Parquet Industry)

Consumption of Parquet Flooring, EU27 2012

Parquet Coatings

European parquet producers continue to face important variations at country level

Sales went down in: Austria, Belgium, Denmark, Finland, France, Italy, Spain, Sweden

Sales remained flat in: Germany, The Netherlands

Sales went up in: Norway, Switzerland

Parquet Coatings

Thank you for your attention!

Contact details:

damir.gagro@vincentz.net

+49 511 99 10 209