The retail paint market

Retail volume of trade sales paint will rise from $3 billion in 1976 to $5.8 billion by 1985, according to a new report by Frost & Sullivan, Inc., New York City.

The 300-page study, "The Trade Sales Paint Market", reveals that "home owner spending for paint and decorating will grow 81% during the 1977 -1985 period, compared to a5lVo increase for the contractor sector.

The volume forecasts for 19751985 are:

The report sees interior paint sales increasing 19% through 1985, with water-based preparations then accounting for 86.5% of total volume, compared to the current 78.8%. Significant changes are expected to occur within retail distribution channels, with retail sales forecast to total $5.8-billion by 1985, compared to $3-billion in 1976.

Analyzing outlet performance, the general merchandiser category is expected to double its 1976 dollar sales, with home centers moving to the forefront with a 141% volume gain. However, hardware and specialty paint stores will undergo a reverse action, with paint sales moving gradually away from their doors.

The Frost & Sullivan report points out, "market demands are conditioned by dissimilar forces." This is exempli- fied by orders for industrial finishes hinging on demands for products they are destined to coat. On the other hand, trade sales paint volume is activated by distinctly different stimuli, mainly in the form of housing starts, money supply and personal disposable income.

Extremely active competition exists in the form of the variety of highly marketable items as zubstitutes for paint sales, including: prefinished wall paneling, wall papers, ceiling tiles and a host of plastic, glass and prefinished wood fibre compositions.

The growing popularity of many of these specialty substitutes has already forced paint producers to enhance their products through greater durability and reduced cost per square foot covered.