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Breaking News

Demand for U.S. Powder Coatings to Grow

June 29, 2009

CLEVELAND - U.S. powder coatings demand is projected to expand 3.5 percent annually to 445 million pounds in 2013, with a market value of $1.2 billion. Volume growth is expected to significantly outpace the gains of the 2003-2008 period as durable goods shipments are forecast to rebound from a weak 2008 base. Powder coatings will continue to achieve gains above the overall paint and coatings market average, taking share from competing products. However, advances in powder coatings market value will continue to be restrained by downward pricing pressure, as overcapacity in the industry persists and the manufacture of durable goods shifts to developing regions, particularly Asia. These and other trends are presented in Powder Coatings, a new study from The Freedonia Group Inc., a Cleveland-based industry research firm.
 
Thermoset powder coatings (e.g., epoxy, epoxy/polyester hybrid, polyurethane, polyester, acrylic and silicone) represent the vast majority of the overall powder coatings market, accounting for 91 percent of demand in 2008. Epoxy is the single largest product type in the thermoset segment, favored for its excellent corrosion and chemical resistance in interior applications.
 
Thermoplastic powder coatings (e.g., polyvinyl chloride, nylon, fluoropolymer, polyolefin and ethylene acrylic acid copolymer) account for the remainder of demand. Polyvinyl chloride is the largest product type in the thermoplastic segment, benefitting from its position as the lowest cost powder coating on the market. Nylon powder coatings exhibit excellent resistance to chemicals, solvents, scratches and corrosion.
 
Powder coatings are primarily used in durable goods markets such as motor vehicles, appliances and housewares, furniture, industrial machinery, and lawn and garden equipment. The motor vehicle market will provide the strongest gains through 2013 based largely on an expected rebound in motor vehicle output following the significant declines of the 2003-2008 period. Product developments that will allow for greater use of powder coatings in exterior applications will also offer opportunities for growth in this market.
 
For further details about the study, e-mail Corinne Gangloff at pr@freedoniagroup.com.

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