Showing steady growth in recent years, the Chinese coatings market has been in the centre of attention of the industry, with many international companies having entered the market. We have gathered five facts about the situation on the Chinese market.
The Chinese coatings output has experienced growth, alternating between high speed and middle speed. A great driving force is increasing domestic consumption due to growing industries such as for instance real estate and the automotive sector.
Number of companies
While China is home to a great number of companies producing paints and coatings, foreign companies and joint ventures hold a fair share of the market. Plus, many of the international players are looking to further strengthen their position by new acquisitions.
This, combined with the increasing regulatory requirements and raw material prices, entails that small and medium-sized companies are under growing pressure.
Main production areas
Most of the Chinese coatings companies are located in Southern and Eastern China as well as in the centre of the country.
The product structure differs from the global market. Mainly, the coatings output of architectural coatings is lower in China compared to other regions, especially Europe and America.
Upgrading environmental regulation
In recent years, environmental compliance has become an increasingly important issue in China. Many Chinese local governments have upgraded their environmental regulations, whereby especially VOC remissions are under the radar.
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