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Chinese Paint Additives Markets
Frost & Sullivan, Dec 2005
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.
This Frost & Sullivan research service analyses the Chinese paint additives markets and segments into rheology modifiers, preservatives, as well as dispersants and wetting, flow/levelling and flatting, foam control, driers and catalysts and film forming agents. The study discusses the major industry challenges as well as market drivers and restraints apart from providing a comprehensive analysis of the markets. The research service enables companies to align their positioning strategies to benefit from the changing markets conditions and obtain maximum return on investment.
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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