German paint and ink manufacturers saw sales drop by 1.47 million tons in 2023, a decrease of 3% over the previous year, according to the Association of the German Paint and Printing Ink Industry (VdL) on Monday.
The industry group said the drop in sales volume was primarily driven by the downturn in Germany's construction industry, which has struggled with rising costs and high interest rates.
Nonetheless, turnover rose by just under 2% to €6.1 billion ($6.6 billion) as a result of higher prices amid inflation, said VdL leader Peter Jansen.
In addition to the weak domestic market, a significant decline in exports also had a negative impact, according to the VdL.
Sales of architectural paints dropped by 4% and coatings for the wood and furniture industry dropped by 9% compared to the previous year.
While the construction industry is suffering from the crisis in residential construction, the furniture industry is being hit by subdued consumer sentiment.
Sales of printing inks slumped by 13%, while industrial coatings - such as paints sealants for the automotive industry - saw an upturn.
The group forecast sales volume in the current year to drop again by 4% to 1.44 million tonnes, but turnover to once again rise.