Sherwin-Williams(US:SHW) Sou Hu Cai Jing·2025-08-13 15:10Core Insights - Sherwin-Williams ranks first in the global decorative paint market for the eighth consecutive year, with a sales revenue of $13 billion and a global market share of 13.27% [1][11][21] - The top ten brands in the ranking collectively generated $39.979 billion in revenue, accounting for 40.79% of the global architectural paint market [1][2] - The ranking is based on the sales revenue of brands in the architectural decorative paint business for 2024, with a minimum entry threshold of $286 million [1][2] Company Overview - Sherwin-Williams, established in 1866, is one of the oldest paint suppliers globally, serving various sectors including professional, industrial, commercial, and retail customers [5][12] - The company operates three main business segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group, with a presence in over 120 countries [5][12] - As of the end of 2024, Sherwin-Williams employed 63,890 people, with 80.84% of its revenue generated in North America [5][12] Financial Performance - Sherwin-Williams' sales revenue increased from $11.339 billion in 2015 to $23.1 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.85% over the past decade [6][11] - Net profit rose from $1.054 billion in 2015 to $2.681 billion in 2024, with a CAGR of 15.18% [6][11] - In 2024, the company reported total revenue of $23.1 billion, a year-on-year increase of 0.2%, and a net profit of $2.681 billion, up 12.25% from the previous year [6][11] Market Position - Sherwin-Williams' architectural paint sales revenue is projected to be approximately $13 billion in 2024, with an estimated market share in the U.S. architectural paint industry rising to around 55% [10][11] - The company has maintained a strong market position, with its share in the U.S. architectural paint market increasing from 26.3% in 2000 to about 53% in 2023 [10][11] Strategic Initiatives - Sherwin-Williams plans to acquire BASF's Brazilian architectural paint business for $1.15 billion, which will enhance its footprint in South America [11][12] - The company has a strong focus on innovation, with over 2,300 R&D personnel and 2,300 active patents, investing over $750 million in a new global headquarters and R&D center [23][25] - The company has a history of strategic acquisitions, including the purchase of Valspar, which helped it surpass PPG to become the largest paint manufacturer globally [5][11][25] Distribution and Channel Strategy - Sherwin-Williams has established a robust distribution network, with over 5,400 stores globally, primarily focusing on direct sales to professional contractors [16][19] - The company has a high percentage of direct sales channels (over 80%), which allows for better service and lower transportation costs [16][19] - The architectural paint market in the U.S. is characterized by a growing trend towards professional contractors, driven by increasing consumer income and an aging population [14][19]