INDEPENDENT NEWS

Natural Paint Co Seeks NZ$1.2m Capital To Further Growth Plans And Push Into Aussie Market Via Snowball Effect

Published: Thu 29 Apr 2021 09:41 AM
Disruptive eco-friendly paint brand, Natural Paint Co is seeking a NZ$1.2m capital raise through online investment platform, Snowball Effect, to fund future growth including streamlining business operations and a pilot entry into the Australian market.
Founded in Christchurch by James Mount and Grace Glass in 2015, 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.
Through Mount’s experience in the paint industry – in which he saw the harmful impact of paints on both people and the environment – Natural Paint Co are challenging the traditional paint industry by offering finishes that are crafted with natural ingredients, yet still exceed industry standards.
With the New Zealand paint market now worth around NZ$720million, the industry has seen a considerable increase from NZ$500m back in 2006. The size of the local paint market is expected to expand by 4% between 2023 and 2025 , in large part due to the strong combined growth of the construction and residential renovation markets, which has been bolstered by an increase in Covid-related home improvement spending.
Grace Glass, co-CEO of Natural Paint Co, says Kiwi consumer expectations are also driving an increased demand for the use of safe, non-toxic alternatives for paints and coatings, which supports global trends. Health and sustainability is now a key purchasing driver for 87% of New Zealanders, with more than one in three Kiwi consumers willing to pay a premium for these products.
“We’ve certainly seen a shift to more ethically-led purchases. The green coatings segment is expected to grow faster than the global market for commercial and residential paints at 6.5% annually vs 4.8% for the overall market. We’re delighted to see this trend as it bodes well for the NZ natural paint sector, especially since 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.
“Seeing this all play out, we’re 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$7.2m by the end of FY23,” says Glass.
Natural Paint Co has 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’ve mapped out a clear pathway to deliver on this strategy, which would see us capture around 1% of the local market in FY23.
“We’re also focused on testing the viability of expanding to other off-shore markets, through an initial pilot in Australia,” adds Glass.
Snowball Effect’s co-founder and CEO, Simeon Burnett, says “We’ve all witnessed the huge home improvement trend prompted by COVID-19, where people got stuck into home projects to spruce up their surroundings, sparking an unexpected renovation boom.
“There’s 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.”
Glass concludes, “We’re thrilled to be welcoming new shareholders into the Natural Paint Co family – to come along with us on our journey to pioneer the sustainable, natural paint market here in Aotearoa and create a positive impact on our people and the planet.”
For more information on Natural Paint Co’s offer, which is now live to the public, visit
https://www.snowballeffect.co.nz/offers/the-natural-paint-co-pcqty7yq

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