Market Development Of Water-based Coatings Industry

- Jan 25, 2021-

In terms of environmental friendliness, water-based coatings are conducive to the healthy development of the environment in the life cycle of raw materials, production and use. That is, it not only replaces volatile organic solvents in the production process, but also reduces the consumption of cleaning solvents because the coating tools can be washed with water during use. In terms of safety, water-based coatings only use a small amount of low-toxic alcohol ether organic solvents, and the volatilization of organic solvents is reduced, which greatly improves the workplace environment and benefits the health of workers. The organic solvent (accounting for paint) of general water-based paint is between 10% and 15%, but the current cathodic electrophoretic paint has been reduced to below 1.2%, which has a significant effect on reducing pollution and saving resources.

Analysis of the market development of the domestic coating industry

According to the statistics of the National Bureau of Statistics of 1963 enterprises above designated size from January to October 2020, the cumulative output of my country’s coatings industry from January to October was 19,965,600 tons, compared with 1,909,700 tons in the same period last year, an increase of 0.3% compared with the same period last year. The cumulative growth rate from January to September 2020 increased by 1.8 percentage points; the cumulative revenue from main operations from January to October was 238.692 billion yuan, compared with 250.991 billion yuan in the same period last year, a year-on-year decrease of 4.9% compared with the cumulative growth rate from January to September. An increase of 1.5 percentage points; the total profit of the coating industry from January to October was 18.998 billion yuan, compared with 18.439 billion yuan in the same period last year, an increase of 3.0% year-on-year, and an increase of 4.0 percentage points from the cumulative growth rate from January to September. From January to October, the total output of coatings in my country’s 11 provinces recorded positive growth year-on-year. Tianjin’s growth rate was 4.0% year-on-year, Inner Mongolia was up 11.3% year-on-year; Liaoning was up 16% year-on-year; Shanghai was up 2.6% year-on-year; Zhejiang was up 11.4 year-on-year %; Anhui increased by 35.6% year-on-year; Henan increased by 26.3% year-on-year; Hunan increased by 8.5% year-on-year, Chongqing increased by 34.3% year-on-year; Sichuan increased by 6.2% year-on-year; Gansu increased by 1.4% year-on-year. In addition, the domestic coatings market is expected to maintain an overall growth rate of 7% in the next 3 to 5 years. The market size is expected to exceed 600 billion yuan in 2022, and the coatings market has a broad prospect. According to analysis, the apparent demand for water-based coatings in my country in 2016 was about 1.9 million tons, accounting for less than 10% of the coatings industry. With the expansion of the application range of water-based coatings, it is predicted that the proportion of water-based coatings in my country will reach 20% within five years. By 2022, the market demand for water-based coatings in China will reach 7.21 million tons.

Analysis of the development of the global waterborne coatings industry market

  Research pointed out that last year the coatings market in Asia had a higher growth rate, with an increase in output of about 3.7%. The global coatings market is mainly divided into five major regions: Middle East and Africa (MEA), Latin America (LA), Asia Pacific, North America, and Europe. Among them, the Asia-Pacific region accounts for about half of the global total, while China accounts for about two-thirds of the total consumption in the Asia-Pacific region. The European and North American coatings markets are relatively mature, with output accounting for 21% and 16% of the global total respectively, while the coatings markets in South America and Central America, dominated by Brazil, account for 6% of the total. The growth of the automotive industry has expanded the demand for water-based coatings, especially the continuous growth of automobile production in China, India, Thailand, Indonesia and Mexico, which has driven the prosperity of the market for water-based coatings. In addition, local government departments have increasingly strict regulations on VOC emissions from solvent-based coatings, which will also promote the growth of the water-based coatings market. The Asia-Pacific region is the largest market for water-based coatings. Titanium dioxide is one of the largest raw materials in the coatings industry, followed by Europe and North America, and this trend will continue in the next few years. As far as the Asia-Pacific region is concerned, mainly stimulated by the increasingly prosperous infrastructure construction in India, China, Indonesia and other countries, the water-based coatings market has huge potential. It is worth noting that some countries such as the United States, China, Germany, etc. have gradually become the main regional markets for global water-based coatings due to factors such as increasing domestic demand, rising income levels, and abundant and easy availability of resources.