Reflections from China Coat 2023
China Coat 2023, Asia's leading coatings industry exhibition, offers valuable insights into the current state and future directions of the coatings sector. This year’s exhibition, which saw an all-time record participation from over 1,040 exhibitors across 31 countries, attracted around 50,000 visitors globally. This included Perstorp’s team, who showcased a range of sustainable products and solutions. Our colleagues attending the event offer their observations and reflections.
Current industry challenges and outlook
The macroeconomic outlook presents a challenging scenario for the coatings industry, especially in China. The slump in the real estate market, coupled with a general economic slowdown, has led to a pessimistic outlook for the last quarter of 2023 and 2024. The industry is navigating through a phase of consolidation triggered by oversupply, with larger enterprises faring relatively better, while smaller and medium-sized companies grapple with survival challenges. This dynamic has caused a greater emphasis on cost efficiency, with many companies prioritizing affordability over premium performance.
Segment performance and sustainability trends
Another key observation was the varying performance across industry segments. While demand in areas tied to construction and packaging showed signs of weakening, sectors like electronics, adhesives, and specialized industrial coatings showed more resilience. This mixed demand scenario reflects broader economic trends and customer preferences, impacting strategies and focus areas for companies within the industry.
Sustainability came up as a prominent theme, with a growing interest in mass balance and low Product Carbon Footprint (PCF) products. This shift, driven by overseas regulatory requirements as well as customer expectations increasingly active in export businesses, underlines the industry's gradual move towards more environmentally conscious practices. Technologies such as RadCure, powder coatings, and waterborne coatings are gaining traction, driven by end-user sustainability goals.
Sustainable innovations and seminar highlights
Perstorp’s commitment to sustainability was evident in our range of low-carbon footprint products. Apart from their sustainable profile they are also practical, serving as drop-in replacements for traditional fossil-based products. This alignment with the industry trend of integrating sustainable factors into paint products gained significant attention. The team held a seminar on '’low carbon products contribute to the sustainable shift of the coatings industry". In this presentation, David Engberg, Business Development Director Resins and Coatings, and Guiguo Qiu, PhD in Technology Innovation, Asia Pacific, showcased how products based on the concept of traceable mass balance can contribute to the sustainable transformation of the coatings value chain by providing the lowest carbon footprint while enabling the transition to renewable raw materials.
In summary, China Coat 2023 provided a valuable snapshot of the current state of the coatings industry, highlighting the complexities of market demand, sustainability trends, and economic challenges.
