Assessment of China's Market for Anti-corrosive Coatings

GCiS, August 2011, Pages: 272

China's Anti-Corrosion Coatings Industry Grows on Rising - Demand for Quality – Window of Opportunity

While domestic suppliers of anti-corrosion coatings control almost 60% of the revenues in this market, only large foreign conglomerates have the capacity to compete on quality and at scale. The market for anti-corrosion coatings in China is valued at RMB 30 Bn at year-end 2010. The industry is growing at 13% annually, but growth is expected to rise significantly due to economic recovery in downstream industries, a rise in domestic demand and awareness of quality issues.

A well-applied, high-quality coating will protect a structure from corrosion for up to 20 years or more. Domestic customers are also starting to realize this. In the period between 2010 and 2015, growth is forecasted at 19% on average. However, domestic coatings suppliers cannot compete with large multinational conglomerates on quality and scale, providing excellent opportunities for foreign coating manufacturers.

Domestic suppliers are mostly small manufacturers that are regionally active and benefit from long standing customer relations. The market leaders are a handful of foreign suppliers – AkzoNobel, Jotun, Hempel, PPG – that generate up to 100 times the revenue of their domestic competitors.

The Chinese government aims to address this situation by stimulating market consolidation and eliminating outdated production capacity. Strict quality and environmental regulations force small domestic suppliers to innovate or die. GCiS research shows that the government is booking some success. Several large domestic suppliers are maturing, along with the technology that they have access to. These suppliers will soon be able to compete with foreign competitors on quality, scale, and price.

But this is a slow process. For the moment the anti-corrosion coatings market offers great opportunities to foreign suppliers of high-quality coating products.

This Limited Publication Study (LPS) provides an in-depth understanding of the market for anti-corrosive coatings in Mainland China, which are divided into six product categories:

epoxy, polyurethane, alkyd, acrylic resin, rich zinc primer and chlorinated rubber. The report is based on a study of the production, sales, distribution and application of epoxy, rich zinc primer, polyurethane, alkyd, acrylic acid, chlorinated rubber and other. Included is a quantitative and qualitative assessment of the market's size, trends, development, key participants and opportunities.

This report is comprised of data and analysis of the China Anti-Corrosive Coatings market and presents a predominantly supply-side view in terms of market numbers. In addition to suppliers, primary research covers channel influencers, customers and end-users, and industry experts.

This study focuses on domestic sales of Anti-corrosive Coatings which are divided into six product categories: epoxy, polyurethane, alkyd, acrylic resin, rich zinc primer and chlorinated rubber.

I. Introduction

LPS Overview
Sections of the Study
Sampling
Figure 1.1: Total Sampling by Target Group
Supplier Sampling
Figure 1.2: Supplier Sampling by Output Volume
Channel Sampling
Figure 1.3: Channel Sampling
Product Definitions
Anti Corrosion Coating (ACC)
Segmentation of ACC
End-user Industry Definitions
II. Definitions and Process
Abbreviations
Figure 1.4: Glossary of Industry Terms in English and Chinese
Figure 1.5: GCiS Standard China Geographic Segmentation
Locations by Tier in China
A Note on China's Key Industrial Output Areas
Figure 1.6: Overview: The Pearl River Delta
Figure 1.7: Overview: The Yangtze River Delta
Figure 1.8: Overview: The Bohai Rim
About Limited Publication Studies

Chapter 2: Total Analysis

I. Executive Summary
Market in Sum
Figure 2.1: Summary of Key Market Figures- ACC
Figure 2.2: Total Market Breakdown - ACC
Figure 2.3: Key Benchmark Data
Figure 2.4: Snapshot of Key Market Entry Issues
Key Findings
Market Drivers and Inhibitors
Main Market Drivers for ACC
Main Market Inhibitors for ACC
Figure 2.5: Chinese Anti-Corrosion Coatings Market - Drivers and Inhibitors
Regulatory Factors
Figure 2.6: Relevant Government Bodies and Quangos
Figure 2.7: Relevant Non-Governmental Organizations
Corporate and Regulatory News
Figure 2.8: Upcoming Events
Market Opportunities
Figure 2.9: GCiS China Market Opportunities Assessment (by Market Segment)
By End User Industry
Figure 2.10: Market Opportunity Matrix for Corting Suppliers by Industry
Figure 2.11: Opportunities Ratings, by Industry (1 to 10, with 10 highest)
By Product Type
Figure 2.12: Market Opportunity Matrix for Corting Suppliers by Product
Figure 2.13: Opportunities Ratings, by Product (1 to 10, with 10 highest)
Expert Views
Recommendations
II. Market Figures
Key Findings
Market Figures Overview
Figure 2.14: Anti-Corrosion Coatings Market Breakdown by Product and End-user Industry
Market Breakdown
Figure 2.15: Breakdown of China's Anti-Corrosion Coatings Market
Market Breakdown Explained
Market Shares
Supplier Revenue
Figure 2.16: Market Shares by Revenue – Market Leaders
Figure 2.17: Market Shares by Revenue – Market Leaders-Chart
Supplier Output
Figure 2.18: Market Shares by Output – Market Leaders
Figure 2.19: Market Shares by Output – Market Leaders-Chart
Figure 2.20: Revenue and Output – Market Leaders
Figure 2.21: Market Shares by Revenue and Output – Market Leaders
Revenues by Region
Figure 2.22: Sales Revenue by Region
Figure 2.23: Revenue Breakdown by Region(2010) - Chart
Regional Production
Figure 2.24: Regional Production by End-user Industry
Figure 2.25: Classification of Provinces by Region
Market Size Figures by Enduser Industry
Figure 2.26: Percentages of Total Revenue by End-User Industry
Figure 2.27: Target Revenue by Product Segment and End-User Industry
Figure 2.28: Target Revenue by End-user Industry and Product Segment
Pricing
Figure 2.29: High-end Pricing by Product Segment
Figure 2.30: Average Price per Ton by Product
Figure 2.31: Reproted Pricing Trends – Supplier Data
Product Segment Growth Rates
Figure 2.32: Weighted Growth Rate by Product
Projections
Forecast Methodology
Forecasts
Figure 2.33: 2010 to 2015 Anti-Corrosion Coatings Market Size (Bn RMB)
Figure 2.34: 2009 to 2015 Anti-Corrosion Coatings Markets Size
Forecast Analysis
Figure 2.35: Year-on-Year Growth Rates for Projection Period
III. Competitive Analysis
Key Findings
Market Structure
Concentration of Suppliers
Figure 2.36: Total Market Concentration by Output of ACC Suppliers
Foreign versus Domestic Suppliers
Figure 2.37: Foreign and Domestic Market Revenue Shares by Segment
Marketing Channels
Figure 2.38: Perceived Importance of Key Marketing Strategies
Exports
Figure 2.39: Export Rate, Foreign and Domestic Companies
Figure 2.40: Export Revenues and Main Export Markets of Exporters
Figure 2.41: Exports and Export Shares of Exporters' Target Revenues
Capacity
Figure 2.42: ACC Market Capacity Usage by Product Segment
Figure 2.43: Total Market Leaders' Capacity, Output and Ratios – 2010-Chart
Qualitative Summary of Key Anti-Corrosion Coatings Suppliers
Figure 2.44: Total Market Leaders' Exports, Revenues Outputs and Shares
Five-Forces Analysis
Figure 2.45: Five Forces Analysis
IV. Channel Player Analysis
Key Findings
Channel Players
Figure 2.46: Channel Revenues Breakdown by Product Type
Figure 2.47: Domestic Revenues and Sales Penetration by Company Type
Figure 2.48: Proportion of Distributors Providing Services
Figure 2.49: Proportion of Channel Players Involved In Each Product Segment by Nature of Supplier's Agreement
Figure 2.50: Total Market for Anti-Corrosion Coatings in China
Value Chain Explained
Customers
Figure 2.51: Perceived Customer Purchase Criteria
Key Findings on Customers
Figure 2.52: Industry Spending By Product Type
Figure 2.53: Spending on Target Products by End-User Industry

Chapter 3: Segment Analysis

I. Epoxy
Key Findings
Figure 3.1.I: Revenues, Output, Growth and Pricing – Epoxy
Revenue Streams and Market Flow
Figure 3.2.I: Revenue Streams - Epoxy
Figure 3.3.I: Market Flow - Epoxy
Overview
Supplier Ownership
Figure 3.4.I: Supplier Ownership – Epoxy
End-user Industries
Figure 3.5.I: End-user Industries - Epoxy
Market Leaders
Figure 3.6.I: Market Leaders – Epoxy
Figure 3.7.I: Market Leader Revenues and Exports – Epoxy
Figure 3.8.I: Domestic Market Leaders by Output – Epoxy
Figure 3.9.I: Domestic Market Leader Revenues and Output – Epoxy
Figure 3.10.I: Domestic Market Leader Revenues and Output – Epoxy
Production Capacity and Output
Figure 3.11.I: Capacity and Output of Market Leaders - Epoxy
Figure 3.12.I: Capacity and Output of Market Leaders – Epoxy-Chart
Output by Region
Figure 3.13.I: Output by Region - Epoxy
Product Details
Figure 3.14.I: Typical Product Details - Epoxy
Pricing
Figure 3.15.I: Product Pricing – Epoxy
Pricing and Output
Figure 3.16.I: Product Output by Price– Epoxy
Projections
Figure 3.17.I: Market Projections – Epoxy
II. Rich Zinc Primer
Key Findings
Figure 3.18.II: Revenues, Output, Growth and Pricing – Rich Zinc Primer
Revenue Streams and Market Flow
Figure 3.19.II: Revenue Streams - Rich Zinc Primer
Figure 3.20.II: Market Flow - Rich Zinc Primer
Overview
Supplier Ownership
Figure 3.21.II: Supplier Ownership –Rich Zinc Primer
End-user Industries
Figure 3.22.II: End-user Industries - Rich Zinc Primer
Market Leaders
Figure 3.23.II: Market Leaders –Rich Zinc Primer
Figure 3.24.II: Market Leader Revenues and Exports –Rich Zinc Primer
Figure 3.25.II: Domestic Market Leaders by Output –Rich Zinc Primer
Figure 3.26.II: Domestic Market Leader Revenues and Output –Rich Zinc Primer
Figure 3.27.II: Domestic Market Leader Revenues and Output –Rich Zinc Primer
Production Capacity and Output
Figure 3.28.II: Capacity and Output of Market Leaders - Rich Zinc Primer
Figure 3.29.II: Capacity and Output of Market Leaders –Rich Zinc Primer -Chart
Output by Region
Figure 3.30.II: Output by Region - Rich Zinc Primer
Product Details
Figure 3.31.II: Typical Product Details - Rich Zinc Primer
Pricing
Figure 3.32.II: Product Pricing –Rich Zinc Primer
Pricing and Output
Figure 3.33.II: Product Output by Price–Rich Zinc Primer
Projections
Figure 3.34.II: Market Projections –Rich Zinc Primer
III. Polyurethane
Key Findings
Figure 3.35.III: Revenues, Output, Growth and Pricing – Polyurethane
Revenue Streams and Market Flow
Figure 3.36.Ill: Revenue Streams - Polyurethane
Figure 3.37.llI: Market Flow - Polyurethane
Overview
Supplier Ownership
Figure 3.38.llI: Supplier Ownership – Polyurethane
End-user Industries
Figure 3.39.llI: End-user Industries - Polyurethane
Market Leaders
Figure 3.40.llI: Market Leaders – Polyurethane
Figure 3.41.llI: Market Leader Revenues and Exports – Polyurethane
Figure 3.42.llI: Domestic Market Leaders by Revenue – Polyurethane
Figure 3.43.llI: Domestic Market Leaders by Output – Polyurethane
Figure 3.44.Ill: Domestic Market Leader Revenues and Output – Polyurethane
Figure 3.45.llI: Domestic Market Leader Revenues and Output – Polyurethane
Production Capacity and Output
Figure 3.46.Ill: Capacity and Output of Market Leaders - Polyurethane
Figure 3.47.Ill: Capacity and Output of Market Leaders – Polyurethane-Chart
Output by Region
Figure 3.48.lll: Output by Region - Polyurethane
Product Details
Figure 3.49.llI: Typical Product Details - Polyurethane
Pricing
Figure 3.50.llI: Product Pricing – Polyurethane
Pricing and Output
Figure 3.51.Ill: Product Output by Price– Polyurethane
Projections
Figure 3.52.llI: Market Projections – Polyurethane
IV. Alkyd
Key Findings
Figure 3.53.IV: Revenues, Output, Growth and Pricing – Alkyd
Revenue Streams and Market Flow
Figure 3.54.IV: Revenue Streams - Alkyd
Figure 3.55.IV: Market Flow - Alkyd
Overview
Supplier Ownership
Figure 3.56.IV: Supplier Ownership – Alkyd
End-user Industries
Figure 3.57.IV: End-user Industries - Alkyd
Market Leaders
Figure 3.58.IV: Market Leaders – Alkyd
Figure 3.59.IV: Market Leader Revenues and Exports – Alkyd
Figure 3.60.IV: Domestic Market Leaders by Output – Alkyd
Figure 3.61.IV: Domestic Market Leader Revenues and Output – Alkyd
Figure 3.62.IV: Domestic Market Leader Revenues and Output – Alkyd
Production Capacity and Output
Figure 3.63.IV: Capacity and Output of Market Leaders - Alkyd
Figure 3.64.IV: Capacity and Output of Market Leaders – Alkyd-Chart
Output by Region
Figure 3.65.IV: Output by Region - Alkyd
Product Details
Figure 3.66.IV: Typical Product Details - Alkyd
Pricing
Figure 3.67.IV: Product Pricing – Alkyd
Pricing and Output
Figure 3.68.IV: Product Output by Price– Alkyd
Projections
Figure 3.69.IV: Market Projections – Alkyd
V. Acrylic Acid
Key Findings
Figure 3.70.V: Revenues, Output, Growth and Pricing – Acrylic Acid
Revenue Streams and Market Flow
Figure 3.71.V: Revenue Streams - Acrylic Acid
Figure 3.72.V: Market Flow - Acrylic Acid
Overview
Supplier Ownership
Figure 3.73.V: Supplier Ownership – Acrylic Acid
End-user Industries
Figure 3.74.V: End-user Industries - Acrylic Acid
Market Leaders
Figure 3.75.V: Market Leaders – Acrylic Acid
Figure 3.76.V: Market Leader Revenues and Exports – Acrylic Acid
Figure 3.77.V: Domestic Market Leaders by Output – Acrylic Acid
Figure 3.78.V: Domestic Market Leader Revenues and Output – Acrylic Acid
Figure 3.79.V: Domestic Market Leader Revenues and Output – Acrylic Acid
Production Capacity and Output
Figure 3.80.V: Capacity and Output of Market Leaders - Acrylic Acid
Figure 3.81.V: Capacity and Output of Market Leaders – Acrylic Acid-Chart
Output by Region
Figure 3.82.V: Output by Region - Acrylic Acid
Product Details
Figure 3.83.V: Typical Product Details - Acrylic Acid
Pricing
Figure 3.84.V: Product Pricing – Acrylic Acid
Pricing and Output
Figure 3.85.V: Product Output by Price– Acrylic Acid
Projections
Figure 3.86.V: Market Projections – Acrylic Acid
VI. Chlorinated Rubber
Key Findings
Figure 3.87.VI: Revenues, Output, Growth and Pricing – Chlorinated Rubber
Revenue Streams and Market Flow
Figure 3.88.VI: Revenue Streams - Chlorinated Rubber
Figure 3.89.VI: Market Flow - Chlorinated Rubber
Overview
Supplier Ownership
Figure 3.90.VI: Supplier Ownership – Chlorinated Rubber
End-user Industries
Figure 3.91.VI: End-user Industries - Chlorinated Rubber
Market Leaders
Figure 3.92.VI: Market Leaders – Chlorinated Rubber
Figure 3.93.VI: Market Leader Revenues and Exports – Chlorinated Rubber
Figure 3.94.VI: Domestic Market Leaders by Output – Chlorinated Rubber
Figure 3.95.VI: Domestic Market Leader Revenues and Output – Chlorinated
Rubber
Figure 3.96.VI: Domestic Market Leader Revenues and Output – Chlorinated
Rubber
Production Capacity and Output
Figure 3.97.VI: Capacity and Output of Market Leaders - Chlorinated Rubber
Figure 3.98.VI: Capacity and Output of Market Leaders – Chlorinated
Rubber-Chart
Output by Region
Figure 3.99.VI: Output by Region - Chlorinated Rubber
Product Details
Figure 3.100.VI: Typical Product Details - Chlorinated Rubber
Pricing
Figure 3.101.VI: Product Pricing – Chlorinated Rubber
Pricing and Output
Figure 3.102.VI: Product Output by Price– Chlorinated Rubber
Projections
Figure 3.103.VI: Market Projections – Chlorinated Rubber

Appendix I: Supplier Profiles Ai

3M Ai
Akzonobel Ai
BASF(Shanghai) Ai
China Paint Ai
Chongqing Sanxia Paint Ai
Chugoku Marine Paints Ai
COSCO Kansai Paint Ai
Dupont Ai
Euronavy Ai
Hempel Ai
Jiangsu Lanling Chemical Group
Jotun Paint Ai
Qingdao Meilong Paint Ai
Nippon Ai
Northwest Yongxin Chemical Industry Ai
PPG Ai
Shandong Lehua Ai
Shandong Lunan Paint Ai
Shanghai Jiren Paint Ai
Shanghai Sherwin-Williams Paint Ai
Tianjin Beacon Paint Ai
Wuhan Linuo Chemical Group Ai
Kunshan Yongji Paint Manufacturing Industry Ai

Appendix II: Channel Profiles Aii

List of Contacts LoC

The Chinese market for anti-corrosion coatings (target market) is valued at approximately RMB 30.0 Bn in revenues as of year-end 2010. This study focuses on the coatings market broken down into its main product segments by resin type – epoxy, polyurethane, alkyd, acrylic resin, rich zinc primer and chlorinated rubber.

This is an update of our hugely popular 2009 study of the same topic. Per the suggestions of previous customers, we have provided a breakdown primarily by resin type, included more information on channel players and included more customer information. This study draws on a three month, in-depth primary survey of around 100 of the market’s supply side and channel players. It is essential reading for any professional needing accurate and detailed strategic information of this market.

Major areas covered include:
- Market Size and Shares
- Five-year Projections
- Market Structure
- New vs Recoat Sales
- Pricing Trends
- Distribution
- Consumption
- Assessment of Key Suppliers

- 3M
- Akzonobel
- BASF(Shanghai)
- China Paint
- Chongqing Sanxia Paint
- Chugoku Marine Paints
- COSCO Kansai Paint
- Dupont
- Euronavy
- Hempel
- Jiangsu Lanling Chemical Group
- Jotun Paint
- Qingdao Meilong Paint
- Nippon
- Northwest Yongxin Chemical Industry
- PPG
- Shandong Lehua
- Shandong Lunan Paint
- Shanghai Jiren Paint
- Shanghai Sherwin-Williams Paint
- Tianjin Beacon Paint
- Wuhan Linuo Chemical Group
- Kunshan Yongji Paint Manufacturing Industry

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