Market Report: Powder Coatings Industry Grows

Electric vehicles, extreme durability and low-temperature cure technology offer sustained growth for powder coatings. What is the status of the powder coating market? According to Kevin Biller, President of Chem Quest Powder Coating Research, the global powder coating market is expected to close 2021 at approximately EUR 11 billion, representing a CAGR of roughly 6.4% compared to 2019. Asia Pacific holds the largest market share at 58.9%, while Europe and North America hold similar shares of 19.1% and 18% respectively. A challenging period meant a supply chain struggling to meet demand in the powder coating industry. The US market, recovering from the effects of the Covid-19 pandemic, was struck by the Uri winter storm in February 2021, which significantly affected petrochemical and raw material supply for the industry. Biller suggests that the pandemic and storm combined may have slowed the supply chain by nine months or more. Consumer spending patterns also directed production and shipping toward delivering consumer products rather than coating raw materials.

Labor Shortage and Truck Drivers

Things may be booming currently, but manufacturers are still struggling to add capacity and fulfill orders. One reason may be raw material supply, but the problem is compounded by shortages in labor and truck drivers. With increasing capacity in China, domestic consumption is also rising. China consumes approximately 50% of the global market, and this local market demand in China and Southeast Asia is affecting the export supply of key raw materials for powder coatings that are in short supply in other markets. According to Biller, these raw material shortages include TGIC (triglycidyl isocyanurate) and HAA (hydroxyalkyl amide) used in polyester powder coatings, representing 17.5% and 12.1% of powder coating chemicals globally, respectively.

Growing Confidence in Performance

The powder market is growing at a rate of 6-7% with growth driven by powder coatings used for new applications and replacing other technologies. Biller says the technology is established, but powder coating opportunities stem primarily from confidence in their performance and demand for their benefits. This confidence is also playing into greater consolidation in the coatings industry with major market players such as AkzoNobel, which acquired Stahl Performance Powder Coatings, and PPG, which acquired Alpha Coating Technologies. From a manufacturer's perspective, Anne Banuls, Regional Powder Operations Manager at PPG, offers the following views: "High demand levels for powder coatings are spread across multiple market segments, including architectural/extrusion, furniture, appliances, and heavy-duty equipment/farm and construction equipment. As these market segments grow, demand for powder coatings that deliver high levels of performance and protection continues to increase." For the US market, Chem Quest identifies general metals as the largest application area for powder coatings at 39.5%, followed by automotive at 16.5% and appliances at 12.2%. Electrical also represents 8.2%. Market Report: Powder Coating Industry Growing Source