Macroeconomic Trends in the Coatings Industry and the Importance of Sustainability

Transcription

1 Macroeconomic Trends in the Coatings Industry and the Importance of Sustainability Kristin Johansson Editor of PCI Magazine Shanghai, November 22, 2013

2 Global coatings consumption Global consumption of coatings projected to be 67 billion lbs. in 2012 worth U.S. $120 billion Region (est.) % AGR Asia Pacific Europe North America South/Central America Rest of World TOTAL Data courtesy of Kusumgar, Nerlfi & Growney

3 Global coatings volume Coating volume up 15% since the 2009 global recession Asia-Pacific leading the way Growth slowed in 2012 due to global and local economic uncertainties Data courtesy of Kusumgar, Nerlfi & Growney

4 Factors contributing to growth Increased vehicle production Growth in construction spending Increasing urbanization Growing global economy

5 Global pigments market value/volume Revenues expected to reach $14.7 billion in 2018 Growing at a CAGR of 4.5% from Pigment volume is expected to reach 4.4 million tons by 2018

6 The global pigments market The coatings industry accounts for 38.5% of overall end users Inorganic pigments account for over 51% of global demand The specialty pigments market is growing at a CAGR of 5.4% Asia Pacific accounts for 40.7% of global demand in 2011 TiO2 industry down in profitability in Manufacturing costs are likely to remain elevated during the next two to three years. TiO2 demand in China growing at 7-8% per year Pigments (Organic, Inorganic & Specialty) Market Global Industry Analysis, Size, Share, Trends, Growth and Forecast, , Transparency Market Research

7 Global megatrends Urbanization Globalization Social trends Energy trends E-Mobility Health/Wellness Sustainability

8 Increased use of renewable materials Due to rapidly depleting fossil fuels, escalating energy consumption, growing global population and rising environmental awareness Market to reach $66.1 billion by 2018 Europe represents the largest regional market Asia-Pacific represents the fastest-growing market Renewable Chemicals: A Global Strategic Business Report, Global Industry Analysts Inc.

9 Green industrial coating Asia

10 Other global trends Government regulations and market demands are driving coatings formulators to develop: Low-VOC waterborne coatings High-solids solventborne coatings UV-cured coatings Coatings that will save energy once applied to a surface

11 Trends in the pigments arena Pigments that are: Easily dispersible Better hiding IR reflecting More lightfast High Performance

12 Industry challenges Fluctuating and volatile prices of key raw materials and crude oil Supply shortages/finite amount of natural resources/growing population Increasingly stringent regulatory environment Developing water-based coatings that have the same performance properties as their solventborne counterparts

13 Buzz words Green Smart Nano Sustainability more than a buzz word

14 Evolution of Sustainability Article headlines in 2000 Sustainability used in a business sense Gaining Sustainable Advantage in the Coatings and Resins Industries How to Retain Customers in a Slowing Economy ICI Sets Sights on Stronger Growth, Sustainable Development' Objectives

15 Evolution of Sustainability Article headlines from Articles refer to sustainability in terms of green technology Green Solutions for Substrate Wetting and Defoaming A Green Tool for Selective Oxidation Reactions Green Coatings Truths and Myths How to Formulate "Eco-Friendly" Anticorrosive Coatings

16 Evolution of Sustainability Article headlines in 2008 Sustainability explodes Sustainability The New Nano RadTech Offers Sustainable Manufacturing Webinar DuPont Facilities Help Chinese Automakers Meet Sustainability Goals B.L. Downey Co. LLC Reduces Carbon Footprint With Lighting Retrofit

17 Evolution of Sustainability Article headlines today Sustainability is everywhere Bio-Compatibility Products For Use in Sustainable Construction Cognis Launches New Sustainability Internet Portal Sustainability Secrets of Material Safety Data Sheets New Paint Company Offers Biodegradable, Vegan and 100% VOC-Free Products Coatings That Change Color and Eat Pollution Efficiency and Sustainability Hot Topics at ACS Sustainability Emerges as Key Focus in Architectural Coatings Market

18 How do we define sustainability? Fewer coats necessary Longer service life Fewer raw materials needed Shorter processing time Less energy/time required Saves energy Two products in one Reduces fuel consumption Reduces waste Recyclable

19 Questions are now being asked How do we measure and define sustainability? Is our product really sustainable? Will a competitor challenge our claim of sustainability?

20 How important is sustainability? 63% Important 27% Indispensible 80% In favor of developing a methodology to define and measure it Data from 2013 European Coatings Congress

21 The sustainability consortium Mission: to design and implement credible, transparent and scalable science-based measurement and reporting systems Driven by consumer market, but the chemical industry, and specifically paint, is now getting involved Beginning a 3-year pilot phase as part of its Product Environmental Footprint (PEF) program decorative paints has been accepted as a pilot

22 Journey to sustainability blog by Tony Mash

23 Next steps?

24 References 1. Global Paint & Coatings , Kusumgar, Nerlfi, & Growney. 2. Pigments (Organic, Inorganic & Specialty) Market Global Industry Analysis, Size, Share, Trends, Growth and Forecast, , Transparency Market Research. 3. Renewable Chemicals: A Global Strategic Business Report, Global Industry Analysts Inc. 4. Global TiO 2 Pigment Producers Comparative Cost and Profitability Study, 9 th Edition, TZ Minerals International. 5. Green Conference Asia, September 24-25, 2013, Shanghai, China. 6. The European Coatings Congress opening session, March 18, The Sustainability Consortium, 8. European Commission,

25 Kristin Johansson Editor Paint & Coatings Industry Magazine Thank you!