Development of environmental protection, economy and high performance of China's coatings industry

In recent years, the coatings industry has not only become increasingly competitive, but has also been affected by many environmental protection inspections. Faced with such an environment, how to survive has become a major issue for coatings companies. The future development of the coatings industry is bound to move towards a green environment.

Paint, as a kind of modern multifunctional engineering material, is an important material in the chemical industry. According to the classification of modern chemical products, paint belongs to fine chemical products, and its uses are very wide. With the rapid growth of coating production and output value, the coating industry is facing huge challenges. How to deal with the fierce competition environment has become the key to the survival of enterprises.

Although China is already the world's largest coatings producer, due to its late start in the coatings industry, the world's top ten coatings manufacturers are still concentrated in North America, Europe and Japan. Data show that in the early days of reform and opening up, China's annual output of coatings was about 50,000 tons, ranking eighth in the world. By 2009, China's coatings had overcome the adverse effects of the global financial crisis since 2008, with a total output of 7,554,400 tons, ranking first in the world for the first time.

The process of industrialization and urbanization in China has provided an opportunity for the rapid development of industrial coatings and architectural coatings. The technological level of the coatings industry has advanced rapidly, the variety of coatings has become increasingly rich and complete, and the production and sales of coatings have also increased significantly. Sales of paints and coatings in China increased from 11.3 million tons in 2010 to 17.9 million tons in 2016, with a compound annual growth rate of 7.9%, and is expected to reach 22.3 million tons in 2021, showing a compound annual growth from 2017 to 2021. The rate is 4.4%.

The market potential of the Chinese coatings industry is broad, and the strong downstream demand will maintain the growth momentum of the coatings industry. The sales value of the coatings market in 2010 was 223.6 billion yuan, and by 2016 this number had grown to 432.7 billion yuan, with a compound annual growth rate of 11.6%. The research institute predicts that it will reach 574.6 billion yuan in 2021, which is a compound year from 2017 to 2021. The growth rate is 5.7%.

At present, China's coatings development is uneven, and it is already self-sufficient in terms of architectural coatings and furniture coatings, but higher-grade automotive coatings and ship coatings are basically dependent on imports. Backward technology and homogeneous competition in low-end products have led to poor profitability in the coatings industry, with a sales margin of only 5% to 7% in recent years.

China's coatings industry is developing in three directions: environmental protection, economy and high performance. Therefore, the coating market in the next few years still has a lot of room for development, and the investment prospect is broad.