Eastern Europe Presents New Growth Opportunity for Dwindling European Powder Coatings Market
Added: (Wed Aug 22 2001)
Pressbox (Press Release) -
The stability and growth of Eastern European countries has encouraged many large international manufacturers of vehicles and consumer goods to transfer production facilities to these countries. They now represent a growing market for powder coatings. A new Study from international marketing consultants Frost & Sullivan reveals that these countries will ensure the European Powder Coatings market moves into a period of sustained growth.
The European powder coatings market had a total value of $1.14billion in 2000 which, despite increased shipments, represents a fall in revenues of 4.5% - mainly owing to falling prices. By 2007 the study forecasts that revenues will grow to $1.82billion which represents a compound annual growth rate of 7%.
The range of prices for powder coatings remains wide and depends to a large extent on the type of polymer binder, polyethylene being the least expensive and acrylic being the most expensive.
Polyester products have needed reformulation to eliminate TGIC, which had previously been used as a crosslinking agent, but will be banned in Europe. This combined with intense competition from the Asia Pacific region means there has been a shift in favour of the larger manufacturers who are able to spread R&D costs and has also resulted in several acquisitions to increase technology or geographic base.
Italy, with large domestic appliance, furniture and car manufacturing industries has the largest market, accounting for almost 25% of powder coating consumption in 2000. Consumption throughout Europe is expected to remain at roughly the same levels. But, the Eastern European Market, whilst small in comparison, can be expected to enjoy faster growth.
As Louise Earnshaw Frost & Sullivan Chemicals Research Manager explains, “powder coatings have made steady inroads into the total coatings market. The European Directive on Volatile Organic Compounds emissions which lays down limits on solvent emissions from factories means many new coatings facilities – particularly in Eastern Europe, have been based on powder rather than liquid technology”.
Another area for future growth detailed in the report is the use of powder coatings in the automotive sector. Acrylic resins are already used for several applications in this industry. Rapid growth is expected in the use of acrylic powders for clearcoat resins for the external protective finish of passenger cars. Collaboration between several European and American companies has been necessary to complete this development.
The report analyses each geographic region, powder coating segment and competitor activity individually to build a comprehensive study of the whole powder coatings market.
Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of chemicals markets for trends, market measurements and strategies. This ongoing research is utilised to complement a series of research publications to support industry participants with customised consulting needs.
The European Market for Powder Coatings (report code 3796-39) published August 2001 is available to purchase from:
Frost & Sullivan, 4100 Chancellor Court, Oxford Business Park, Oxford, OX4 2GX, UK.
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