Coatings World - May 2014

Powder coatings producers and other players in the supply chain will have to continue to be highly innovative to maintain the momentum, while also keeping costs down.

by Sean Milmo

European Correspondent milmocw@rodmanmedia.com

Powder coatings is currently one of the strongest growth sectors in the European coating market. But powder coatings producers and other players in its supply chain will have to continue to be highly innovative to maintain the momentum, while also keeping costs down.

Before the 2008 financial crisis powder coatings sales in Europe had been declining because the technology was seen to be too expensive and inflexible.

However, over the last few years powder coatings prices have been easing as new formulations have been introduced enabling applications at lower temperatures which has allowed the use of a greater variety of substrates.

Powder coatings are increasingly being regarded as an attractive alternative to more established liquid coatings systems because the powder option offers greater resistance and durability and often more visual appeal.

As a result sales of powder coatings in Europe have been going up, at least in volume terms, at an above average rate. Whereas demand for powder coatings in the emerging markets of Asia and Latin America is being pushed by rising growth in demand for automobiles, household appliances and other consumer products, a lot of the increased sales in Europe has been triggered by environmental regulations like controls on emissions of volatile organic compounds (VOCs) and the need for alternative, better performing coatings.

While many coatings segments in Western Europe have been tending to lag behind the average for global growth rates, powder coatings has been keeping pace with worldwide trends.