U.S. Powder Coatings and Dyes, and Organic Pigments Both Set for Growth
August 1, 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 a new study from The Freedonia Group Inc., Cleveland.
Thermoset powder coatings represent the vast majority of the overall powder coatings market, accounting for 91 percent of demand in 2008. Thermoplastic powder coatings account for the remainder of demand.
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.
The Freedonia Group has also published a new study that forecasts world demand for dyes and organic pigments will increase 3.9 percent per year to $16.2 billion in 2013, in line with real (inflation-adjusted) gains in manufacturing activity. Volume demand will grow 3.5 percent annually to 2.3 million metric tons. While the textile industry will remain the largest consumer of dyes and organic pigments, faster growth is expected in other markets such as printing inks, coatings and plastics. Strong gains will occur in developing Asia and, to a lesser extent, other developing areas such as Africa, the Middle East and Eastern Europe. Market maturity will limit advances in developed areas such as North America, Western Europe and Japan.
Following trends seen over the past decade, the Asia-Pacific region will experience the strongest growth and increase its share of the global dye and organic pigment market, representing one half of world demand in 2013, up from 37 percent in 1998. China is by far the largest single consumer in the world and the fastest growing national market. India will also post rapid increases, but demand levels will remain well below those of China. China alone is expected to account for about two fifths of global value gains in dye and organic pigment demand between 2008 and 2013.
Growth in dye consumption will trail increases in organic pigment demand, although dyes will continue to represent the lion’s share of the overall market, both in volume and value. Among the different dye product types, disperse dyes are expected to see the most rapid gains, due to their usage in the fast-growing polyester fiber industry. For their part, organic pigments find increasing use in inks and coatings; the best prospects are for high-performance products such as quinacridones. While specialized pigment grades will offer good opportunities due to their enhanced environmental acceptability and superior performance characteristics, classical or conventional grades are expected to continue to dominate the organic market.