year 2017, according to a report
released by Global Industry Analysts (GIA). Growing use of
epoxy resins in niche and relatively untapped end-use applications such
as marine and maintenance coatings,
bonding applications, decorative powder
coatings, electrical laminates and flooring
and paving are expected to generate substantial growth in the market. Additionally, heightened R&D efforts towards
enhancing epoxy resin reactivity, coating
performance and flexibility and development of innovative products for specific
industry needs will boost prospects in the
medium- to long-term.
Epoxy resins are one of the most widely
used and versatile compounds in the polyester or orthophthalic resins family. The
resins form a highly versatile family of thermosetting resins known for their superior
electrical and mechanical properties, excellent resistance against higher temperatures,
dimensional stability, large number of chemicals and their strong adhesion to a wide
range of materials like fibers, glass and metal.
Primary growth areas for epoxy resins include traditional packaging and coatings sectors, particularly powdered coatings and
waterborne coatings industries.
Demand for epoxy resins is immense
with epoxy/polyester hybrids exhibiting
strong gains due to their low cost and
solid performance in both interior and ex-
terior applications. Coatings remain one
of the major application areas for epoxy
resins, contributing a substantial share in
the total volume sales registered for the
global market. High-performance indus-
trial coatings in particular prove to be the
major end use segment for epoxy resins,
driving huge gains into the market.
A profile of the Chinese paint industry
IRL has published the sixth edition of its report, “A Profile of the Chinese Paint Industry.” The report updates IRL’s previous study released in 2009
and includes the latest industry trends and up-to-date statistics.
Chinese paints and coatings consumption reached just over 11 million tons in 2011. More than one-third of the market was occupied by architectural coatings. This dynamic market has continued its growth trajectory despite the global economic recession by focusing on domestic
market demand in the construction, automotive, and home appliances and consumer electronics sectors.
Hosting key events, such as the Beijing Olympic Games in 2008, Shanghai World Expo in 2010 and Guangzhou Asian Games in 2010, China
has stimulated huge amounts of investment in the country’s infrastructure. China has continued to invest in infrastructure development, including new bridges, landmark city buildings, alternative energy facilities, nuclear generation plants, schools, and hospitals.
These factors have all contributed to double-digit growth in the Chinese coatings market year every year since 2002, with the exception of
2008. Over the next five years market growth is expected to remain at a level of around 10 percent per year, with the fastest growth being
achieved in road marking paints, coatings for plastics, automotive refinishes and protective coatings. These booming sectors will compensate
for considerably slower growth in automotive OEM coatings and wood coatings said the report.
Per capita paint consumption remains relatively low in China at approximately 7.2 kg, indicating that there is still considerable potential for
the market to grow further and penetrate into the more underdeveloped regions of China.
The Chinese coatings industry continues to be highly fragmented, with as many as 20,000 manufacturers active in the market, albeit on a
very small scale for many. Future consolidation is highly likely as smaller players get pushed
out through environmental pressures and demand for more high quality products from the
end-users.
The key opportunities for future growth in the market will arise from factors such as:
• The 18th Congress of the CCP (Chinese Communist Party) will be held in October 2012
and there will be pressure on the new leadership team to introduce measures to stimulate the
economy after many government incentives were pulled in 2011;
• The Chinese government’s affordable housing program plans to build 36 million new
affordable dwellings over the next five years;
• Huge regional disparities remain in China, with rural areas offering opportunity for in-frastructural development and as yet untapped consumer demand;
• Rising car ownership, poor road conditions and a very low scrappage rate will all boost
demand for automotive refinishes;
• The Chinese end-user industries will be looking for coatings offering environmental ben-
efits and safety features (like lead-free, VOC-free, formaldehyde-free etc.), plus more func-
tionality, in order to meet stricter standards (particularly for products destined for export) and
serve the needs of discerning consumers (especially the younger generations); and
• Offshore engineering schemes and infrastructure development will bolster sales of ma-
rine and protective coatings.
42 | Coatings World
www.coatingsworld.com
April 2012
