Paint and Wallpaper Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,400 firms in the US sell paint, wallpaper, and related supplies to consumers and commercial contractors. Major product categories include architectural paint; painting equipment; coatings; painting supplies; and wallpaper.
Sensitivity to Remodeling, Construction, and Economic Trends
Demand for architectural paint and wallpaper is dependent on the health of the remodeling and construction industry, which is cyclical and influenced by economic conditions.
Seasonal Fluctuations in Demand
The paint market is seasonal and subject to uneven demand throughout the year.
Industry size & Structure
The average paint and wallpaper retailing company employs less than 10 workers and generates $12 million annually.
- The paint and wallpaper retailing industry consists of about 1,400 firms that employ about 50,400 workers and generate about $16.6 billion annually.
- The large paint and coatings manufacturers, such as Sherwin-Williams, PPG, and Benjamin Moore, dominate the paint and wallpaper retail landscape through company-owned locations. Sherwin-Williams is also one of the largest distributors of wallpaper in the US.
- About 36% of firms generate less than $500,000 annually; 25% generate between $500,000 and $1 million annually.
- About 83% of firms employ fewer than ten workers.
- Franchises account for a small (about 2.5%) of the industry.
Industry Forecast
Paint and Wallpaper Stores Industry Growth
Recent Developments
Jan 27, 2025 - Remodeling Spending to Improve in 2025
- Home remodeling spending is expected to see slight gains in 2025 after two years of weakening expenditures, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase by 0.4% to $513 billion in the first quarter of 2025 compared to Q1 2024. In the second quarter of 2025, remodeling spending will rise quarter-over-quarter to $505 billion, up 0.7% from Q2 2024. Spending will then increase to $506 billion in Q3 2025, up 1.2% from Q3 2024. In the fourth quarter of 2025, year-over-year spending is forecast to rise 1.2% to $509 billion. Joint Center expects improvements to be supported by rising home values, a steady labor market, and gradually improving existing home sales. Better retail sales of building materials and solid remodeling permitting activity should also support home improvement spending.
- Sales of existing US homes increased by 2.2% in December from November and were up 9.3% year-over-year, according to the National Association of Realtors (NAR). The pace of December existing home sales was the strongest since February 2024 and the most robust year-over-year improvement since June 2021. However, despite stronger demand near the end of the year, 2024 saw the weakest existing home sales in nearly 30 years. NAR chief economist Lawrence Yun said, "Home sales in the final months of the year showed solid recovery despite elevated mortgage rates. Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market." Existing home sales drive demand for paint and wall coverings as improvements are often made before a home is sold or after it’s purchased.
- Home builder confidence in the single-family market moved higher in January 2025 amid hopes of improved economic growth and regulatory reforms, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), ticked up one point to 47 in January from 46 the previous month. Any HMI reading over 50 indicates that more builders see conditions as good than poor. While builders are still concerned about high interest rates and elevated land and financing costs, they are also hopeful that policymakers are aware of the industry’s headwinds and will move to reduce regulations.
- Home improvement industry observers expect remodeling spending to rise in 2025 as more homeowners borrow against the rising equity they have in their homes, according to The Wall Street Journal. After a significant uptick during the pandemic, as people were stuck at home, remodeling spending has been lackluster. Higher interest rates also made it more expensive to finance major renovations. In September 2024, the Federal Reserve cut interest rates for the first time in four years. Rates are expected to continue dropping, which could prompt many homeowners to leverage the value locked in their homes and take out loans for improvements.
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