Under the growing pressure of environmental governance and increasing government support, water-based coatings and other eco-friendly alternatives are set to experience significant growth. Academician Jin Yong from the Chinese Academy of Engineering emphasized that these environmentally friendly paints align with global technological trends and represent the next generation of traditional coatings, driving a new era of green painting solutions.
With the implementation of the new Environmental Protection Law, penalties for polluting enterprises have no upper limit, making volatile organic compounds (VOCs) from conventional paints a major target for regulation. Currently, China produces nearly 13 million tons of paint annually, but less than 50% is environmentally friendly, compared to 70%-80% in Europe and the U.S. In terms of application, 45% of the market is for architectural coatings, which are mostly eco-friendly, with water-based coatings accounting for 90% and powder coatings around 8%. However, nearly half of the market still relies on solvent-based paints, which emit harmful substances like formaldehyde and benzene, posing serious environmental risks.
In foreign markets, traditional solvent-based paints have long been banned due to their negative impact on both production and usage. Since January 1, 2004, the EU completely prohibited the production and sale of such paints, pushing the industry toward water-based alternatives. Similarly, the U.S. imposed restrictions on Chinese paint-containing furniture entering the American market in the same year. Water-based paints use water as a diluent and eliminate toxic chemicals, offering a more sustainable solution that can significantly reduce air pollution and improve environmental management.
According to calculations, the paint consumption tax policy will affect the average profit margin of the paint industry by 5-10%, but it serves as a strong indirect policy support for water-based paint manufacturers. Additionally, China’s “Regulations for the Administration of Production of Passenger Vehicles and Product Access,†effective from January 1, 2012, explicitly included water-based automotive paints in the “Access Conditions and Review Requirements†for passenger vehicle manufacturers. The VOC emissions from water-based paints are 60%-70% lower than those of oil-based paints, offering clear environmental benefits.
Overall, eco-friendly coatings like water-based and powder coatings are expected to see rapid development. Jin Litai, a leading manufacturer, primarily produces cathodic electrophoretic and ceramic water-based paints, which account for over 70% of its product range. Its fundraising project was officially launched in 2014, aiming to produce nearly 80,000 tons of cathodic electrophoretic and topcoat paints, with market shares of over 40% and 20% respectively in the commercial vehicle sector.
Shenjian is the largest producer of polyester resin for powder coatings in China, with an annual capacity of 95,000 tons. Yusanxia A, a vice president unit of the Domestic Coatings Association, has actively participated in or led the development of multiple industry standards. The company continues to invest heavily in R&D to develop low-pollution, high-performance water-based and high-solid paints, further strengthening its position in the evolving green coatings market.
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