Abstract
Research Overview
Upgrades in Coatings Formulations Broaden the Scope of the Chinese Paint Additives Market
With the top ten global coating manufacturers having entered the Chinese
additives market with their classic formulations and high-grade and
high-performance coatings, Chinese coating manufacturers have been encouraged
to significantly increase the of use additives. This improved use has impelled
the market to hike not only its volume of production, but also to enhance its
technologies and functions. Reflecting the trend in Europe and the United
States, there is a slow, but perceptible shift from solvent- to water-based or
high-solid coatings in China. This augurs well for the market, since more
paint additives with various functions will be required to compensate for the
reduced amount of solvent applied.
Significant Rise in Coatings Production and a Healthy Economy Drives Market Demand
The tremendous rise in the coatings production volume is very likely to cause
a consequent increase in the use of paint additives. In 2004, the Chinese
paint market had around 8,000 coatings producers that were rolling out
3,798,900 tonnes of product. China's booming economy has also contributed in
great measure to the development of industries such as real estate, automotive
and infrastructure reconstruction, which in turn, will drive coating
applications and therefore, paint additives that improve coatings properties
and applications.
The Beijing Olympics 2008 and Shanghai Expos 2010 are expected to give a
further fillip to the Chinese economy in future. "These events have enormous
potential influence on many aspects in various industries, including the
coatings market -- especially decorative coatings," says the analyst of this
study. "Since many huge projects have to be undertaken for these events, it
will facilitate the rapid expansion of the decorative coatings market."
Growing Environmental Concerns Promote Use of Water-based Solvents and thereby, Additives
The growing consciousness among the Chinese about the quality, credibility,
health and environmental compliance of coatings has made consumers gravitate
towards efficient, easy to handle and environment-friendly products. This has
generated significant demand for low volatile organic compound (VOC) emissions
from coatings and environmentally safe paints that are either water-based or
have high solids content, depending on application. This is expected to drive
the additives market, since such paints need a larger amount of paint
additives than traditional solvent-based coatings.
Additionally, the Chinese Government is likely to pass building legislations
regarding VOC levels in coatings on furniture and indoor decoration, which
will hasten the shift towards water-based coatings. "The expanding demands on
paints with various functions in gloss, colour and multi-proof promote
upgrades of paint additives regarding quality and technology," notes the
analyst. Manufacturers need to solve the environmental and ecological concerns
of consumers and regulatory bodies to distinguish themselves and gain an edge
over the other participants in the intensively price-competitive market.
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