Market evolution: Tanning and dyeing materials (CN 32) — 2015–2025

Introduction

This report examines the evolution of the European Union's extra-EU trade in products covered by customs heading 32, which includes tanning extracts, dyes, pigments, paints, varnishes, putties, and inks, over the period from 2015 to 2025. The analysis is based on trade value, volume, unit prices, partner concentration, and production data to identify the key trends and structural changes that have shaped the EU's market position over this decade. The data indicates a sector that has successfully shifted towards higher-value production, strengthening its export performance in monetary terms despite a significant decline in traded volumes. This shift has been accompanied by a major geographic reconfiguration of trade flows, increased price volatility, and a growing integration of the EU's domestic production with international markets.

1. Overall Trade Trends: Rising Values Amidst Volume Pressures

The EU's trade in CN 32 products over the 2015-2025 period demonstrates a clear divergence between monetary and physical trade flows, characterized by rising values and declining volumes. This dynamic points to a fundamental shift in the sector's competitive strategy, moving away from volume-based competition towards higher-value-added products.

1.1. EU Exports: Value Growth Outpaces Significant Volume Decline

EU extra-EU exports of CN 32 products grew in value by 6.2% from €12.12 billion in 2015 to €12.87 billion in 2025. However, this value increase masked a dramatic 23.0% contraction in exported quantity, which fell from 4.10 million tonnes to 3.16 million tonnes. The result was a substantial 37.9% increase in the average export price, which rose from €2,953 per tonne to €4,072 per tonne over the period. This indicates that EU producers have shifted their export basket towards more specialized, higher-margin products, enhancing revenue per unit sold even as total volumes receded. View the full trade overview.

1.2. EU Imports: Steady Volume Growth with Moderating Prices

In contrast to the export trend, EU imports of CN 32 products expanded in both value and volume. Import value increased by 21.5%, from €6.29 billion to €7.64 billion, while imported quantity surged by 45.5%, from 1.24 million tonnes to 1.81 million tonnes. Consequently, the average import price declined by 16.5%, from €5,054 per tonne to €4,221 per tonne. This suggests the EU increasingly sourced bulk or competitively priced standard products from global markets to complement its own high-value production.

1.3. A Shrinking, But Robust, Trade Surplus

The EU maintained a significant trade surplus throughout the period, though its size eroded. The surplus narrowed from €5.83 billion in 2015 to €5.23 billion in 2025, a contraction of 10.3%. Despite the shrinkage, the consistent surplus underscores the sector's overall competitiveness, which is rooted in the high unit value of its exports rather than in volume dominance.

2. Geographic Reconfiguration: Shifting Partner Dynamics and Reduced Concentration

The period witnessed a major reorientation of the EU's trade relationships, with significant shifts among its key partners. This reconfiguration contributed to a measurable decrease in the concentration of both export and import sources.

2.1. Exports: The Collapse of Russian Trade and the Rise of New Partners

The most dramatic change in the EU's export profile was the near-total collapse of trade with the Russian Federation. Exports to Russia plummeted by 95.1%, from €1.08 billion to €52 million, a direct consequence of geopolitical sanctions following 2022. This void was partially filled by strengthened trade with other partners. Exports to the United States grew by 53.1% to €1.58 billion, making it the top destination, while exports to Türkiye increased by 34.5% to €1.18 billion. The traditional partnership with the United Kingdom remained significant but declined by 16.3% to €1.58 billion. View partner data.

2.2. Imports: Diversification Away from Traditional Sources

On the import side, the sources of supply became more diverse. While the United Kingdom remained the largest single source, its share declined from €1.98 billion to €1.67 billion (-15.9%). Import growth was driven by Türkiye (+201.4% to €256 million) and the United States (+43.1% to €891 million). China's role fluctuated, with import value rising by 47.2% to €1.12 billion. This diversification is reflected in the Herfindahl-Hirschman Index (HHI), a measure of market concentration. The import HHI fell sharply by 31.3%, from 1,588 to 1,092, indicating a significant reduction in supplier concentration and a more balanced import portfolio. View concentration metrics.

2.3. Internal Specialisation: Germany Leads a Specialised Core

Within the EU, production and export leadership remained highly concentrated. Germany was the largest exporter by a wide margin, accounting for €4.31 billion in 2025, followed by Italy (€1.42 billion) and Spain (€1.40 billion). The data on revealed symmetric comparative advantage (RSCA) shows that in 2025, Belgium, Germany, and Slovenia possessed the strongest specialisation in this product group, indicating a core of highly competitive producers within the EU.

3. Structural Shifts: From Volume to Value and Increasing Volatility

Beyond trade flows, the CN 32 sector underwent structural changes affecting its production base, price stability, and integration with the global economy.

3.1. Domestic Production: A Pivot to Value

EU domestic production data reveals a strategic shift mirroring the export trends. While production volume grew modestly by 12.9% (from 14.12 to 15.95 billion kg), production value surged by 49.6% (from €25.78 billion to €38.57 billion). This indicates that EU manufacturers are producing and selling a more valuable output mix, likely focusing on high-performance coatings, specialty pigments, and sophisticated chemical preparations rather than bulk commodities. View production volumes.

3.2. Increased Trade Intensity and Export Propensity

The EU economy became more deeply integrated into the global market for these products. The trade intensity index (the ratio of trade to production) rose from 36.8% to 46.0%, while the export propensity (exports as a share of production) climbed from 25.6% to 34.9%. This heightened openness exposes the sector more to international competition and supply chain disruptions but also provides greater market opportunities for its high-value products.

3.3. Price Shocks and Volatility in Key Corridors

The period was marked by significant price volatility, particularly following the economic and logistical disruptions of the early 2020s. A major price shock was detected in EU exports to the United Kingdom in 2022, with a 17.0% price shift and an abnormality score of 95.2. A smaller but notable shock occurred in exports to Algeria. On the import side, prices from the UK also spiked. These shocks highlight the sensitivity of the sector's high-value goods to global disruptions. Among key partners, imports from China and Serbia exhibited high volatility (coefficient of variation over 0.25), while exports to the Russian Federation were the most volatile before the trade collapse. View supply shock analysis.

Conclusion

The EU's trade in tanning and dyeing materials (CN 32) from 2015 to 2025 evolved from a volume-oriented model to one focused on value and specialisation. This is evidenced by rising unit values for exports, a robust trade surplus, and booming domestic production value, even as physical trade volumes declined on the export side and grew on the import side. The market underwent a significant geographic shift, diversifying its import sources and reallocating exports away from Russia towards the US and Türkiye. This restructuring was accompanied by increased price volatility and greater integration of the EU's specialized production base into global supply chains. The sector has successfully navigated a path towards higher value creation, though this strategy has introduced new dependencies and exposure to global price shocks.