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In recent years, the development of environmentally friendly coatings has gained significant momentum, driven by stricter environmental regulations and supportive government policies. Water-based coatings, in particular, are emerging as a key player in this transformation. As noted by Academician Jin Yong from the Chinese Academy of Engineering, water-based paints align with global technological trends and represent the next generation of traditional paints, paving the way for a greener future in the industry.
With the implementation of the new Environmental Protection Law, penalties for polluting enterprises have no upper limit, making volatile organic compounds (VOCs) from conventional paints a major focus for remediation efforts. In China, the annual paint output is approaching 13 million tons, yet less than 50% of this is environmentally friendly paint, compared to 70-80% in Europe and the U.S. The architectural coatings segment, which makes up nearly 45% of the market, is largely composed of eco-friendly options, with water-based coatings accounting for 90% and powder coatings around 8%. However, solvent-based paints still dominate about 50% of the market, releasing harmful substances like formaldehyde and benzene that significantly impact the environment.
Internationally, solvent-based paints have long been restricted or banned in many developed markets. Since January 1, 2004, the European Union completely phased out the production and sale of solvent-based paints, pushing the industry toward water-based alternatives. Similarly, the U.S. imposed restrictions on Chinese paint-furniture imports in 2004. Water-based paints, using water as a diluent and containing no toxic chemicals, offer a cleaner alternative that can reduce atmospheric pollution and support better environmental management.
The introduction of a paint consumption tax policy has put pressure on the average profit margin of the paint industry, which stands at 5-10%. For manufacturers of water-based paints, however, this policy serves as an indirect but powerful form of support. Additionally, China's "Regulations for the Administration of Production of Passenger Vehicles and Product Access," implemented in 2012, explicitly included water-based automotive paints in the requirements for vehicle manufacturers. VOC emissions from water-based paints are 60-70% lower than those from oil-based paints, offering clear environmental benefits.
Overall, the shift toward eco-friendly coatings like water-based and powder paints is accelerating. Companies such as Jin Litai, which specializes in electrophoretic water-based paints, produce over 70% of their products using these sustainable technologies. Their fundraising project, expected to begin full-scale operations in 2014, aims to reach a combined production capacity of nearly 80,000 tons of cathodic electrophoretic paint and topcoat, targeting a market share of over 40% and 20% respectively in the commercial vehicle sector.
Shenjian, a leading manufacturer of polyester resin for powder coatings in China, has an annual production capacity of 95,000 tons. Yusanxia A, a vice president unit of the Domestic Coatings Association, has actively participated in developing industry standards and continues to invest in R&D for low-pollution, high-performance water-based and high-solid paints. This growing commitment to sustainability signals a promising future for environmentally friendly coatings in both domestic and global markets.