Jinzong Machinery | Cosmetic Machinery & Chemical Machinery Manufacturers
Annual Review: Development Characteristics of the Coating Manufacturing Industry in 2023
2023 was a year of both opportunities and challenges for the coatings industry. On one hand, amid economic downturn, a sluggish real estate market, and rising raw material costs, demand in the coatings market remained subdued. Companies generally faced declining profits, and a number of firms lacking core competitiveness were gradually phased out.
On the other hand, coatings enterprises strived to break through these challenges by accelerating adjustments and transformations. They moved swiftly toward product premiumization, diversified channels and business models, and explored multiple pathways to overcome difficulties, creating new growth drivers. Many actively pursued listings, leveraging capital markets to drive high-quality development. In the face of crisis, companies sought opportunities ahead of time; amidst changes, they forged new paths forward.
As the annual review arrives as scheduled, this issue will guide you through the development characteristics of China’s coatings industry in 2023.
Trends such as the environmental friendliness and functionality of coating products, along with the integration of coating and application processes, are becoming increasingly prominent.
Amidst national efforts to address environmental pollution, rising public awareness of environmental protection, and shifts in consumer behavior, the substitution of solvent-based coatings with low-VOC alternatives—such as powder, waterborne, high-solid, and radiation-curing coatings—has been gradually accelerating. Compared to traditional solvent-based coatings, waterborne industrial coatings—with their advantages in environmental protection, energy efficiency, and cost-effectiveness, along with support from national industrial policies—have increasingly become one of the primary alternatives to traditional solvent-based coatings, representing the future direction of the coatings industry.
With the development of the coatings market and new materials, downstream customers are placing higher demands on the functional performance of coatings. Only customized coating products can meet the specific requirements of different fields. Specialized coatings with diverse functions—such as anti-static, high-temperature resistance, shock absorption, and noise reduction—are increasingly favored by downstream clients.
In recent years, coating manufacturers have prioritized practical application in product development, taking into comprehensive consideration the needs of downstream enterprises in material selection, construction, environment, and equipment. By integrating product technology with real-world application, they have developed corresponding coating products based on customer requirements. Meanwhile, downstream enterprises such as Jinzong, while maintaining strong coating application techniques and equipment, have deepened collaboration with coating manufacturers. To enhance coating quality and reduce costs, they are also actively promoting the integrated coating-and-application business model. This integrated model has gradually become a key sales approach in the coating manufacturing industry.
As the application fields of industrial coatings continue to expand, the coating manufacturing sector faces mounting pressure for transformation and upgrading.
Compared to architectural coatings, the industrial coatings market involves more complex usage environments, higher technological requirements, greater R&D challenges, and higher entry barriers. Competition remains relatively fragmented, and market potential is substantial. Beyond traditional sectors such as rail transit, automotive, marine, wind power, aerospace, military, and petrochemical industries, emerging fields like optoelectronics, bioengineering, optical fiber communication cables, and urban wastewater treatment are also fostering new coating application markets.
Currently, the high-end industrial coatings market is largely dominated by well-known international coating giants. Domestic coating enterprises still face challenges such as low localization rates of key raw materials, limitations in R&D and application of new materials, and constraints in process technology. However, some domestic companies have made breakthroughs in niche markets, gradually narrowing the gap with international giants in terms of technology, craftsmanship, brand recognition, and sales channel management.
Amid external factors such as volatile raw material prices and stricter environmental regulations, the coating manufacturing industry is under pressure to transform and restructure due to rising costs and intensified competition. Innovation is becoming a key driver for the industry's development. Domestic coating enterprises are actively adjusting their product portfolios, improving quality and grade, phasing out outdated capacity, upgrading processes and equipment, optimizing industrial layouts, accelerating mergers and acquisitions, and promoting industrial clustering and upgrading. They are also committed to ecological protection, accelerating the development of clean production technologies, and fostering sustainable growth in the coating manufacturing sector.
Trend of Industrial Chain Integration
From the perspective of the industrial chain, coating enterprises occupy the midstream segment, with raw material producers upstream and end-users or consumers downstream. The entire industrial chain remains relatively fragmented, with significant disconnection between upstream and downstream sectors and poor coordination. The impact of upstream raw materials on the coating manufacturing industry is mainly reflected in two aspects: firstly, the scale of raw material production and the stability of quality directly affect the production capacity of the coating manufacturing industry and the stability of product performance; secondly, the prices of raw materials influence the production costs of coatings.
The prices of upstream raw materials for the coating manufacturing industry, such as polyether, titanium dioxide, MDI, and acrylic acid, have experienced a rapid surge. However, the increase in prices of downstream coating products has been far from matching the rise in raw material costs. Continuously escalating production costs have led to shrinking profit margins in the coating manufacturing industry.
Furthermore, as the quality of some domestically produced raw materials has yet to reach international standards, reliance on imported raw materials severely restricts the large-scale production and promotion of high-end coatings that align with industry trends and frontier applications. In this context, coating manufacturers are extending their reach into the upstream core raw materials sector to achieve self-sufficiency in key materials. This helps ensure production stability, reduce costs, improve product quality, and build new core competitiveness. Therefore, industrial chain integration with upstream raw material sectors will become a significant trend in the future development of the coating manufacturing industry.
Tel: +86-758-3623881
E-mail: sales@jinzong.com.cn
Fax: +86-758-3623880
Address: NO.3 Kangtai St., Hi-tech Dist., Zhaoqing City, Guangdong Province, China（526238）