The Impact of Italy's Superbonus scheme on the Architectural Coatings Industry

The Superbonus initiative, introduced by the Italian government, was a major policy designed to encourage energy-efficient renovations in residential buildings by providing homeowners with tax deductions, effectively allowing renovations at minimal cost. This scheme had a significant impact on the construction and renovation sectors, influencing related industries, including paints and coatings. The architectural paints and coatings market was greatly impacted by this scheme. In 2023, the Italian Architectural paints and coatings market experienced modest growth, with positive performance extending across all major end-use segments, including residential new builds, residential renovation, maintenance, and improvement (RMI), and non-residential.

The residential RMI sector experienced only marginal increases in sales volume for architectural coatings in 2023. This slowdown was due to the significant renovation work completed in recent years, resulting in a slowdown in RMI activity. The driving force behind residential RMI was Italy's Superbonus 110% scheme. This initiative offered homeowners a significant tax deduction, effectively allowing them to renovate their properties at minimal costs. However, at the start of 2023, the scheme was revised and replaced by the Superbonus 90%, which impacted the volume of renovation projects and, consequently, the demand for architectural coatings. For instance, as per the latest available data, in 2024, a total of 495,717 buildings, have benefited from the Superbonus scheme representing around 4-5% of the entire residential housing stock. Of these, 133,401 were apartment buildings. The completed works amounted to around €70 billion, with an average investment of €592,789 per building.

Historically, the policy particularly boosted the sales of exterior paints surpassing those of other types of paints and coatings. Conversely, performance in other segments, such as interior paints, remained stable or slightly declined. While interior paints sales had flourished during the pandemic, their demand now fluctuates with changes in household consumption patterns.

Increased Demand for High-Performance Products

The Superbonus has significantly boosted the demand for high-performance architectural paints and coatings. Driven by the financial incentives of the Superbonus, homeowners and property developers are increasingly investing in premium coatings that enhance thermal insulation, durability, and aesthetic appeal. Caparol, a major player in the Italian architectural paint sector, introduced several products in recent years, such as Caparol CapaSol exterior paint designed for superior weather resistance. It provides a high level of protection against harsh environmental conditions.

Growth in Eco-Friendly Paints

The focus of the Superbonus on energy efficiency and sustainability has driven interest in eco-friendly paints. Products that are low in volatile organic compounds (VOCs) and made from sustainable materials are increasingly favoured. As a result, there is a noticeable transition towards coatings that contribute to a greener footprint. For example, Caparol offers eco-friendly solutions such as Caparol BioProtect, which features low emissions and is designed for healthy indoor environments.

Impact on Pricing

With increased demand for high-performance and eco-friendly paints, pricing dynamics have shifted. While some products may experience price increases due to higher production costs and advanced formulations, the competitive market also encourages price adjustments and promotions. Consumers may find a broader range of options at different price points, influenced by the overall market competition.

In conclusion, Italy's Superbonus has had a transformative impact on the paints and coatings industry, driving demand for energy-efficient, sustainable products, and boosting the overall market. While the program has presented challenges, it has also opened up new opportunities for growth and innovation. As Italy continues to prioritize energy efficiency and sustainability, the paints and coatings industry is poised to remain a key player in the country's construction and renovation sectors.