Disruptive eco-friendly paint brand, Natural Paint Co is seeking a NZ$1.2 million capital raise through online investment platform Snowball Effect. This will include a pilot entry into the Australian market, according to a recent Scoop Independent News report.
The Kiwi-owned and operated manufacturer of sustainable plant-based paints and oils has quickly established itself as a fast-moving category innovator. With a unique digital-first distribution model. It was initially founded in Christchurch in 2015, by James Mount and Grace Class.
After working within the paint industry for some time, Mr Mount saw the harmful impact of paints on both people and the environment. He launched Natural Paint Co to challenge the traditional paint industry. Offering finishes that are crafted with natural ingredients, yet still exceed industry standards.
The New Zealand paint market is now worth around NZ$720million. Seeing a considerable increase from NZ$500m back in 2006. The size of the paint market expected to expand by four per cent between 2023 and 2025. This is due to the strong combined growth of the construction and residential renovation markets. This has been bolstered by an increase in COVID-related home improvement spending.
Co-Chief Executive Officer of Natural Paint Co, Grace Glass, said Kiwi consumer expectations are also driving an increased demand for the use of safe, non-toxic alternatives for paints and coatings. Health and sustainability is now a key purchasing driver for 87% of New Zealanders. More than one in three Kiwi consumers willing to pay a premium for these products, Ms Glass said.
“The green coatings segment is expected to grow faster than the global market for commercial and residential paints at 6.5% annually versus 4.8% for the overall market. We are delighted to see this trend as it bodes well for the NZ natural paint sector. This segment has largely been ignored by the market leaders, who have focused on only offering low-VOC eco-paints, as opposed to paint solutions without harmful chemicals,” he said.
“We are excited to propel our brand further by seeking capital to improve our operational efficiencies, expand our online, direct-to-consumer sales model and commence a push into the Australian market. Our growth strategy is forecast to grow revenue to over NZ$7.2 million by the end of FY23,” Ms Glass said.
Natural Paint Co plans to complete a second capital raise by 2024 to drive further growth domestically and explore overseas expansion into markets such as the US and China.
“Our long-term goal is to grow the business to capture a greater share of the NZ market. We have mapped out a clear pathway to deliver on this strategy, which would see us capture around one per cent of the local market in FY23. We are also focused on testing the viability of expanding to other off-shore markets, through an initial pilot in Australia,” Ms Glass said.
Snowball Effect’s Co-founder and Chief Executive Officer, Simeon Burnett, said there is also an increasing demand for environmentally-friendly, healthy paint products. Especially ones used in the home, which signals a strong opportunity for early entrants like Natural Paint Co to start really growing at scale.