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TRANSCRIPT
Macroeconomic Trends
in the Coatings Industry
and the Importance of Sustainability
Kristin Johansson
Editor of PCI Magazine
Shanghai, November 22, 2013
Global coatings consumption
Global consumption of coatings projected
to be 67 billion lbs. in 2012 – worth U.S. $120 billion
Data courtesy of Kusumgar, Nerlfi & Growney
Region 2009 2012 (est.) % AGR
Asia Pacific 23.3 28.5 7
Europe 17.2 18.5 3
North America 12.3 13.6 4
South/Central America
4.4 5.1 5
Rest of World 1.5 1.7 5
TOTAL 58.7 67.4 5
Coating volume up
15% since the 2009
global recession
Asia-Pacific leading
the way
Growth slowed in 2012
due to global and local
economic uncertainties
Data courtesy of Kusumgar, Nerlfi & Growney
Global coatings volume
Increased vehicle production
Growth in construction spending
Increasing urbanization
Growing global economy
Factors contributing to growth
Global pigments market value/volume
Revenues expected to reach $14.7 billion in 2018
Growing at a CAGR of 4.5% from 2013-2018
Pigment volume is expected to reach 4.4 million tons by 2018
The coatings industry accounts for 38.5% of overall end users
Inorganic pigments account for over 51% of global demand
The specialty pigments market is growing at a CAGR of 5.4%
Asia Pacific accounts for 40.7% of global demand in 2011
TiO2 industry down in profitability in 2012. Manufacturing costs are likely to
remain elevated during the next two to three years. TiO2 demand in China
growing at 7-8% per year
Pigments (Organic, Inorganic & Specialty) Market Global Industry Analysis, Size, Share, Trends,
Growth and Forecast, 2012 – 2018, Transparency Market Research
The global pigments market
Global megatrends
Urbanization Globalization Social trends Energy trends
E-Mobility Health/Wellness Sustainability
Increased use of renewable materials
Due to rapidly depleting fossil fuels, escalating energy consumption,
growing global population and rising environmental awareness
Market to reach $66.1 billion by 2018
Europe represents the largest regional market
Asia-Pacific represents the fastest-growing market
“Renewable Chemicals: A Global Strategic Business Report”, Global Industry Analysts Inc.
Green industrial coating Asia
Other global trends
Government regulations and market demands are driving coatings
formulators to develop:
Low-VOC waterborne coatings
High-solids solventborne coatings
UV-cured coatings
Coatings that will save energy once applied to a surface
Trends in the pigments arena
Pigments that are: Easily
dispersible
IR reflecting
High Performance More lightfast
Better hiding
Industry challenges
Fluctuating and volatile prices of key raw materials and crude oil
Supply shortages/finite amount of natural resources/growing population
Increasingly stringent regulatory environment
Developing water-based coatings that have the same performance
properties as their solventborne counterparts
Buzz words
Green
Smart
Nano
Sustainability – more than a buzz word
Evolution of ‘Sustainability’
Article headlines in 2000
Sustainability used in a business sense
Gaining Sustainable Advantage in the
Coatings and Resins Industries
How to Retain Customers in a Slowing
Economy
ICI Sets Sights on Stronger Growth,
‘Sustainable Development' Objectives
Article headlines from 2002-2008
Articles refer to sustainability in terms of “green” technology
Green Solutions for Substrate Wetting and
Defoaming
A Green Tool for Selective Oxidation
Reactions
Green Coatings Truths and Myths
How to Formulate "Eco-Friendly"
Anticorrosive Coatings
Evolution of ‘Sustainability’
Article headlines in 2008
Sustainability explodes
Sustainability The New Nano
RadTech Offers Sustainable Manufacturing
Webinar
DuPont Facilities Help Chinese
Automakers Meet Sustainability Goals
B.L. Downey Co. LLC Reduces Carbon
Footprint With Lighting Retrofit
Evolution of ‘Sustainability’
Article headlines today
Sustainability is everywhere
Bio-Compatibility Products For Use in Sustainable Construction
Cognis Launches New Sustainability Internet Portal
Sustainability Secrets of Material Safety Data Sheets
New Paint Company Offers Biodegradable, Vegan and 100% VOC-Free Products
Coatings That Change Color and Eat Pollution
Efficiency and Sustainability Hot Topics at ACS
Sustainability Emerges as Key Focus in Architectural Coatings Market
Evolution of ‘Sustainability’
How do we define sustainability?
Fewer coats necessary
Longer service life
Fewer raw materials needed
Shorter processing time
Less energy/time required
Saves energy
Two products in one
Reduces fuel consumption
Reduces waste
Recyclable
Questions are now being asked
How do we measure and define sustainability?
Is our product really sustainable?
Will a competitor challenge our claim of sustainability?
How important is sustainability?
63% Important
27% Indispensible
80% In favor of developing a methodology to define and measure it
Data from 2013 European Coatings Congress
The sustainability consortium
Mission: to design and implement
credible, transparent and scalable
science-based measurement and
reporting systems
Driven by consumer market, but the
chemical industry, and specifically
paint, is now getting involved
Beginning a 3-year pilot phase as part
of its Product Environmental Footprint
(PEF) program – decorative paints
has been accepted as a pilot
http://ec.europa.eu/environment/eussd/smgp/product_footprint.htm
Journey to sustainability blog by Tony Mash
www.pcimag.com
Next steps?
References
1. “Global Paint & Coatings 2013-2018”, Kusumgar, Nerlfi, & Growney.
2. “Pigments (Organic, Inorganic & Specialty) Market Global Industry Analysis, Size,
Share, Trends, Growth and Forecast, 2012 – 2018”, Transparency Market Research.
3. “Renewable Chemicals: A Global Strategic Business Report”, Global Industry Analysts
Inc.
4. “Global TiO2 Pigment Producers Comparative Cost and Profitability Study, 9th Edition”,
TZ Minerals International.
5. Green Conference Asia, September 24-25, 2013, Shanghai, China.
6. The European Coatings Congress opening session, March 18, 2013.
7. The Sustainability Consortium, www.sustainabilityconsortium.org/.
8. European Commission, www.sustainabilityconsortium.org/.
Thank you!
Kristin Johansson
Editor
Paint & Coatings Industry Magazine
E-mail: [email protected]
www.pcimag.com