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Environmental friendly coatings are set to experience significant growth driven by stricter environmental regulations and government incentives. Water-based coatings, in particular, are gaining momentum as they align with global trends in sustainable technology and represent the next generation of traditional paints, paving the way for a greener future in the industry.
According to Academician Jin Yong from the Chinese Academy of Engineering, water-based and other eco-friendly coatings are not only environmentally responsible but also technologically advanced. With the implementation of the new Environmental Protection Law, penalties for polluting companies have no upper limit, making volatile organic compounds (VOCs) from conventional paints a key target for regulation. This shift is accelerating the transition toward more sustainable alternatives.
China's annual paint output is approaching 13 million tons, yet less than 50% of this is environmentally friendly paint. In contrast, Europe and the U.S. have achieved usage rates of 70-80%. Within the market, 45% is composed of architectural coatings, which are largely eco-friendly—90% being water-based and about 8% powder coatings. However, nearly half of the market still relies on solvent-based paints, which emit harmful substances like formaldehyde and benzene, posing serious risks to both health and the environment.
In international markets, solvent-based paints have been largely phased out due to their negative impact. Since 2004, the EU has completely banned the production and sale of such paints, pushing the industry toward water-based alternatives. Similarly, the U.S. imposed restrictions on Chinese furniture painted with traditional coatings, further highlighting the global shift toward greener options.
Water-based paints use water as a diluent instead of toxic solvents, significantly reducing pollution and improving air quality. As governments worldwide introduce policies like the paint consumption tax, which may reduce average profit margins for traditional paint producers by 5-10%, the support for water-based coatings becomes even stronger. Additionally, China’s 2012 regulations explicitly include water-based automotive paints in the approval process for vehicle manufacturers, emphasizing their environmental benefits. VOC emissions from water-based paints are 60-70% lower than those from oil-based paints, making them a critical solution for pollution control.
Leading companies like Jin Litai are at the forefront of this transformation, producing over 70% of their products using water-based electrophoretic and ceramic coatings. Their new project, expected to be operational in 2014, will boost production capacity to nearly 80,000 tons, aiming for over 40% and 20% market shares in commercial vehicle segments. Shenjian, the largest manufacturer of polyester resin for powder coatings in China, produces 95,000 tons annually. Yusanxia A, a key player in the domestic coatings association, actively invests in R&D to develop low-pollution, high-performance water-based and high-solid paints, contributing to the industry’s sustainable evolution.