Rheology modifiers and biocides for coatings to steer growth in China coating additives market during the next five years.
Coating additives are specialty additives primarily used during the manufacturing of coatings in order to improve their quality and performance. Some major types of coating additives include rheology modifiers, wetting and dispersing additives, defoamers, flow and leveling additives, biocides, slid and rub additives, UV stabilizers, etc. The coating additives market in the country is directly related to growth in China's coatings industry, which is projected to grow at a CAGR of over 10% during 2014-19. Over the next five years, major demand for coatings is expected to emanate from the architecture and automotive industries in China.
According to a recently published report by TechSci Research, "China Coating Additives Market Forecast & Opportunities, 2019", the China coating additives market is projected to witness a CAGR of around 12% during 2014-19. This growth is expected to be driven by increasing popularity of high quality coatings in major end-user industries such as architecture, automotive, marine and shipping, wood and plastic coatings, etc. Owing to growing demand, most of the leading global manufacturers such as AkzoNobel, BASF, PPG Industries, VALSPAR, Axalta, etc. are increasing their production capacities in China.
Additionally, the presence of major coating and coating additive producers in China has promoted extensive research and development, which has led to introduction of various innovative product lines over the last few years, a trend that is expected to continue in coming years as well. Few such examples of novel products include multifunctional coating additives, green coating additives and additives for water based coatings. Recent advancements in water based coatings are expected to significantly benefit the market for coating additives in China. The reason for robust growth of water based coatings is rising consumer awareness regarding the negative health impact of solvent based coatings, due to high emissions of volatile organic compounds (VOCs).
"In order to comply with international quality and safety standards for coatings, the Government of China is promoting the use of low VOC coatings in residential and infrastructural projects. Consequently, strong growth in water based coatings segment in China is expected to continue during 2014-19. Further, innovative products such as silicone based additives, multifunctional additives and green coating additives are expected to witness robust demand, thereby boosting the country's coating additives market over the next few years" said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
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