David Savastano, Contributing Editor09.06.21
Powder coatings are ideal for many segments; from architectural applications to cars to furniture and more, powder coatings protect any products while imparting an enhanced appearance.
It is a sizable business, too. Estimates place the market at roughly $10 billion to $12 billion. For example, Grand View Research (GVR) valued the powder coatings market at $11.9 billion in 2020, expanding at a compound annual growth rate (CAGR) of 7.2%. The consumer goods application segment accounted for 23.69% of the overall volume share, according to GVR.
“A rise in the production of automobiles and the surge in demand for medical devices are expected to be major factors driving the market growth in developing nations including India, China, Brazil, and Mexico over the forecast period,” GVR’s analysts wrote. “Moreover, high product adoption in the furniture sector on account of its excellent performance, low operational costs, color availability, and custom properties, such as anti-corrosion and anti-bacterial functions, will stimulate market growth.
Meanwhile, Allied Market Research (AMR) estimates that the powder coatings market will reach $15 billion by 2026, with a CAGR of 5.4% from 2019-2026, with automotive approaching 20% of the segment.
“Powder coatings in automotive application segment occupied the major share in 2018 and is expected to maintain its lead,” AMR’s researchers reported.
Shelley Verdun, PPG’s business manager, powder, industrial coatings, observed that the powder coating market is recovering and demand has been strong through July, outpacing both 2019 and 2020 levels in most market segments.
“Supply chain issues with raw materials and transportation have been headwinds since early year, impacting the market as well as high raw material inflation with epoxies, additives, pigments and polyester resins,” Verdun added.
Dave Heflin, VP, general industrial coatings at Axalta, said that the powder coatings market is recovering well after the COVID-19 pandemic.
“As we’ve seen in other areas of our business, the powder business is recovering and strengthening within all end segments in 2021,” added Heflin. “While demand has grown, there have been pressures placed on the availability and supply of raw materials, but this has not slowed down the demand for powder coatings. Given the stress placed on the various logistic companies as well as the various ports throughout the world, we are focusing on local manufacturing and supply capabilities to keep up with the demand.”
Verdun notes that powder coatings offer advantages over liquid coatings at every point on the lifecycle.
“Powder coatings have enhanced durability, exceptional chip and abrasion resistance, are low in VOC and cost efficient due to high transfer efficiency and reclaimability,” Verdun added. “From an applicator perspective, powder coatings offer low cost-of-entry to the market, low PPE requirements, do not use solvent for clean-up and have minimal impact to the environment. In addition, there are no special storage or transportation requirements and in powder coating processes, no hazardous waste is generated.”
Not surprisingly, leading coatings manufacturers are expanding their presence in the segment.
For example, AkzoNobel acquired Stahl Performance Powder Coatings, which offers products for heat-sensitive substrates. According to AkzoNobel, this technology includes both UV and thermally curing powders at ultra-low cure (80-100°C), which can allow powder coatings to be applied to temperature-sensitive substrates such as wood, MDF, plywood, thermoplastics and composites.
With an eye on the wood market, AkzoNobel also opened a new research center in its largest powder coatings plant, located in Como, Italy.
“The clearly differentiating UV technology, in particular, is expected to see significant growth and will further strengthen our position as a complete provider of sustainable solutions for heat-sensitive substrates, in particular for our wood coatings customers,” said Daniela Vlad, business director of AkzoNobel Powder Coatings, in announcing the acquisition. “
AkzoNobel also is building a €20 million powder coatings plant in its multi-site facilities in Chungli, Taiwan, which the company reports is fully automated and will be sustainable.
“The COVID-19 pandemic has brought a lot of uncertainties to global markets,” said Fred Moreux, director of manufacturing for Asia at AkzoNobel, in announcing the investment. “Investing in a new plant in Taiwan at this critical time will help us streamline our supply chain while setting a new benchmark in the local paints and coatings industry.”
COVID-19 Pandemic and Powder Coatings Market
Verdun noted that the COVID-19 pandemic impacted many aspects of the powder industry, particularly with manpower across the supply chain, from producers, to raw material suppliers, to logistics and end-use customers.
“Customer shutdowns, record declines in consumer spending, and lack of capital expenditures are trends that negatively impacted on our markets,” Verdun pointed out. “Within the broad scope of industrial segments, markets related to construction, automotive, office furniture and transportation have been notably impacted. Most powder manufacturers were fortunate to be deemed essential businesses.”
“All end markets were impacted – to varying degrees - by the global pandemic,” Heflin observed. “Our customers had product and service requirements throughout this time, and therefore the demand for powder coatings continued even with the headwinds that most end markets faced. There were some end markets, such as architectural and construction, that were not impacted as much and rebounded much more quickly. Given the protective and durability benefits that powder technology provides within these segments, the powder market demand remained strong.”
Verdun said that from a productivity perspective, the remote office proved to be an effective option to address the unique challenges that COVID presented.
“While nothing will take the place of face-to-face interactions that lead to creativity and innovation, the industry has certainly pivoted to virtual platforms for daily communications, customer interactions and e-learning opportunities,” said Verdun. “People quickly figured out how to work from home and to be productive. I expect elements of the virtual workforce will remain and companies will need to adopt flexibility to retain and attract top talent. Recovery from COVID-19 has been slow and steady in 2021, but the rise of the Delta variant is concerning and is a risk being closely monitored.”
Key Markets
There are many key products for powder coatings. PPG’s Verdun pointed to appliance, general industrial and aluminum extrusion markets as all showing steady growth.
“While powder has traditionally been used in these areas, confidence in powder coatings is growing,” Verdun added. “New market growth areas for powder now include wood, wood composites, and dense and oversized metals. Thanks to recent advancements in low-bake technology, powder coatings can be used to achieve a tough, durable coating that delivers clear advantages over competing finishing technologies in sustainability, aesthetics and functionality. Additionally, the growing demand for metallic effects has resulted in an increasing demand for bonded powder coatings.”
“Powder coating technology is environmentally friendly making it one of the favorable choices as focus on the environment continues to be an important criteria to our customers,” said Heflin. “Our customers are also able to reclaim the powder within the coating application process, which drives improved efficiency and utilization as creates less waste. Given Axalta’s recent innovations for technology and manufacturing, we are able to provide new color and appearance trends along with the protective and durability benefits that will enhance the growth and demand for powder coatings.”
Axalta’s Heflin said that all end segments are providing continued opportunities for growth.
“This is especially true for the construction and general industrial segments,” he added. “Powder costing services supporting protective and infrastructure applications are accelerating as focus and attention in these segments is driving further investment. In addition, we’ve invested in innovation to provide enhanced durability and protection properties. Additionally, we’ve developed new colors and aesthetics. The recent innovations we’ve made to our powder coating solutions help to broaden the applications for powder technology.”
Meanwhile, the Asia Pacific region is a key market for powder coatings.
“Asia Pacific has been the fastest growing coatings market for powder with an estimated growth rate of roughly 5%, followed by Europe,” Verdun said. “The key drivers of growth include GDP, residential and architectural construction, industrial and automotive production.”
“Europe has been a leader in the usage of powder coatings,” Heflin noted. “As new innovations are introduced, the demand continues to strengthen in all regions, particularly in the Americas and Asia Pacific. The powder coatings business has truly become a global market given customers have expanded their global footprint and are requiring even more consistency in the coatings developed in each of their locations. Axalta has the technology and global footprint to provide consistent and quality products along with local specialized service to our global customers.”
New Products
To meet the needs of end users, powder coatings manufacturers have been formulating innovative products. For example, PPG introduced its PPG Coraflon Platinum.
“We’ve launched a few new products this year, with the most recent being PPG Coraflon Platinum,” said Verdun. “This breakthrough powder coating combines durability with aesthetics, offering FGIA/AAMA 2605-compliance in a wide range of colors and finishes. Its wide range of colors is made possible by an expanded gloss range of 5-85 (versus 25-70 for FEVE powders), which allows it to achieve the look of anodized aluminum when specific in a matte finish. Additionally, it offers high transfer efficiency that’s a 20% improvement over standard FEVE powders, reducing waste and touch up. This benefit makes it an ideal solution for coating everything from window frames and building panels to storefronts. At PPG, we are committed to innovating in powder and focused on developing benchmark technologies that will solve our customers’ most pressing problems while being ahead of regulatory needs.”
PPG also launched its PPG ErgoLuxe powder coatings for metal office furniture. Designed for applications such as seatings, desks, cabinets and more, PPG reports that PPG ErgoLuxe powder coatings offer a first-pass transfer efficiency rate of up to 85% and the ability to reclaim and reuse overspray.
PPG’s ErgoLuxe Eco contains up to 13% recycled polyethylene terephthalate (rPET); the company reports that since 2017, PPG has used more than 6 million pounds of rPET to manufacture its coatings.
PPG is also active in the heat-sensitive wood and wood-composite market, introducing its PPG ENVIROCRON HeatSense Powder Coating. PPG reports that the coating can cure in as few as five minutes at 250°F, as well as accommodate the shrinking and swelling of wood over the finished product’s lifetime.
PPG Envirocron HeatSense coating can be cured quickly in a convection or infrared (IR) oven and is fully reclaimable. The coating is formulated without volatile organic compounds (VOCs) and hazardous materials.
“Powder coatings have long been valued on metal substrates for their durability and low carbon footprint,” said Verdun in launching the product. “The introduction of PPG Envirocron HeatSense coating enables us to transfer those benefits to key wood coating markets, such as cabinetry, office furniture and building products.”
Other powder coatings suppliers are actively developing new products. AkzoNobel expanded its powder coatings portfolio with its durable Interpon D2525 Flex. After the introduction of Interpon D2525 Structura Flex, the line has now been extended to the full-color range and is also available in gloss, satin and matt for the European market. Interpon D2525 Flex is designed for windows, doors and other aluminum features that need post-powder bending.
“Architects are increasingly moving towards superior durability to create built environments that inspire and endure. And because we’re always looking to innovate, we’ve extended the range of our pioneering solution to further support architects in creating a lasting legacy, with powder coatings that deliver quality, reliability and performance second to none,” said Remco Stokhof, European segment manager for architectural coatings at AkzoNobel’s Powder Coatings business, in introducing the product.
Axalta is also actively developing new powder coatings, adding the SuprAnodic Collection, expanding its range of weather-resistant metallic effect powder coatings from the Alesta SD SuperDurable product portfolio.
“We introduce more than 25,000 new color technologies each year and work to provide our customers with innovative and sustainable solutions that make their products last longer and perform better,” Heflin said. “These eco-friendly technologies are better for the environment, cost effective, require less energy consumption and support our sustainability goals and those of our customers.
The company reports that the QUALICOAT Class 2 and GSB Florida 3 (Master) certified powder coatings convince with excellent UV and weather resistance and easy application, making it ideal for outdoor architectural applications and exterior design.
“At Axalta, we are intensively engaged with both the developments that influence architecture and the requirements of the coating industry. Based on this information, we develop appropriate solutions that make coating processes easier, more reproducible and more sustainable,” said Ludovic Béal, product & marketing leader architecture & furniture at Axalta Powder Coatings in EMEA, in announcing the new product line. “This includes ensuring that our metallic products are manufactured using the latest bonding technology giving them their low gloss, optical depth and fascinating metallic effect, which, in combination with the new colors, enable architects and designers to set extraordinary accents on buildings and objects.”
TIGER Drylac added two new color additions – Sunrise Black and Tropical Red – to its Metallics product line. TIGER Drylac reports that its Flip-Flop Metallics change colors in different lighting conditions and at different angles, which offers sparking metallic effects in weather resistant, durable powder coating.
It is a sizable business, too. Estimates place the market at roughly $10 billion to $12 billion. For example, Grand View Research (GVR) valued the powder coatings market at $11.9 billion in 2020, expanding at a compound annual growth rate (CAGR) of 7.2%. The consumer goods application segment accounted for 23.69% of the overall volume share, according to GVR.
“A rise in the production of automobiles and the surge in demand for medical devices are expected to be major factors driving the market growth in developing nations including India, China, Brazil, and Mexico over the forecast period,” GVR’s analysts wrote. “Moreover, high product adoption in the furniture sector on account of its excellent performance, low operational costs, color availability, and custom properties, such as anti-corrosion and anti-bacterial functions, will stimulate market growth.
Meanwhile, Allied Market Research (AMR) estimates that the powder coatings market will reach $15 billion by 2026, with a CAGR of 5.4% from 2019-2026, with automotive approaching 20% of the segment.
“Powder coatings in automotive application segment occupied the major share in 2018 and is expected to maintain its lead,” AMR’s researchers reported.
Shelley Verdun, PPG’s business manager, powder, industrial coatings, observed that the powder coating market is recovering and demand has been strong through July, outpacing both 2019 and 2020 levels in most market segments.
“Supply chain issues with raw materials and transportation have been headwinds since early year, impacting the market as well as high raw material inflation with epoxies, additives, pigments and polyester resins,” Verdun added.
Dave Heflin, VP, general industrial coatings at Axalta, said that the powder coatings market is recovering well after the COVID-19 pandemic.
“As we’ve seen in other areas of our business, the powder business is recovering and strengthening within all end segments in 2021,” added Heflin. “While demand has grown, there have been pressures placed on the availability and supply of raw materials, but this has not slowed down the demand for powder coatings. Given the stress placed on the various logistic companies as well as the various ports throughout the world, we are focusing on local manufacturing and supply capabilities to keep up with the demand.”
Verdun notes that powder coatings offer advantages over liquid coatings at every point on the lifecycle.
“Powder coatings have enhanced durability, exceptional chip and abrasion resistance, are low in VOC and cost efficient due to high transfer efficiency and reclaimability,” Verdun added. “From an applicator perspective, powder coatings offer low cost-of-entry to the market, low PPE requirements, do not use solvent for clean-up and have minimal impact to the environment. In addition, there are no special storage or transportation requirements and in powder coating processes, no hazardous waste is generated.”
Not surprisingly, leading coatings manufacturers are expanding their presence in the segment.
For example, AkzoNobel acquired Stahl Performance Powder Coatings, which offers products for heat-sensitive substrates. According to AkzoNobel, this technology includes both UV and thermally curing powders at ultra-low cure (80-100°C), which can allow powder coatings to be applied to temperature-sensitive substrates such as wood, MDF, plywood, thermoplastics and composites.
With an eye on the wood market, AkzoNobel also opened a new research center in its largest powder coatings plant, located in Como, Italy.
“The clearly differentiating UV technology, in particular, is expected to see significant growth and will further strengthen our position as a complete provider of sustainable solutions for heat-sensitive substrates, in particular for our wood coatings customers,” said Daniela Vlad, business director of AkzoNobel Powder Coatings, in announcing the acquisition. “
AkzoNobel also is building a €20 million powder coatings plant in its multi-site facilities in Chungli, Taiwan, which the company reports is fully automated and will be sustainable.
“The COVID-19 pandemic has brought a lot of uncertainties to global markets,” said Fred Moreux, director of manufacturing for Asia at AkzoNobel, in announcing the investment. “Investing in a new plant in Taiwan at this critical time will help us streamline our supply chain while setting a new benchmark in the local paints and coatings industry.”
COVID-19 Pandemic and Powder Coatings Market
Verdun noted that the COVID-19 pandemic impacted many aspects of the powder industry, particularly with manpower across the supply chain, from producers, to raw material suppliers, to logistics and end-use customers.
“Customer shutdowns, record declines in consumer spending, and lack of capital expenditures are trends that negatively impacted on our markets,” Verdun pointed out. “Within the broad scope of industrial segments, markets related to construction, automotive, office furniture and transportation have been notably impacted. Most powder manufacturers were fortunate to be deemed essential businesses.”
“All end markets were impacted – to varying degrees - by the global pandemic,” Heflin observed. “Our customers had product and service requirements throughout this time, and therefore the demand for powder coatings continued even with the headwinds that most end markets faced. There were some end markets, such as architectural and construction, that were not impacted as much and rebounded much more quickly. Given the protective and durability benefits that powder technology provides within these segments, the powder market demand remained strong.”
Verdun said that from a productivity perspective, the remote office proved to be an effective option to address the unique challenges that COVID presented.
“While nothing will take the place of face-to-face interactions that lead to creativity and innovation, the industry has certainly pivoted to virtual platforms for daily communications, customer interactions and e-learning opportunities,” said Verdun. “People quickly figured out how to work from home and to be productive. I expect elements of the virtual workforce will remain and companies will need to adopt flexibility to retain and attract top talent. Recovery from COVID-19 has been slow and steady in 2021, but the rise of the Delta variant is concerning and is a risk being closely monitored.”
Key Markets
There are many key products for powder coatings. PPG’s Verdun pointed to appliance, general industrial and aluminum extrusion markets as all showing steady growth.
“While powder has traditionally been used in these areas, confidence in powder coatings is growing,” Verdun added. “New market growth areas for powder now include wood, wood composites, and dense and oversized metals. Thanks to recent advancements in low-bake technology, powder coatings can be used to achieve a tough, durable coating that delivers clear advantages over competing finishing technologies in sustainability, aesthetics and functionality. Additionally, the growing demand for metallic effects has resulted in an increasing demand for bonded powder coatings.”
“Powder coating technology is environmentally friendly making it one of the favorable choices as focus on the environment continues to be an important criteria to our customers,” said Heflin. “Our customers are also able to reclaim the powder within the coating application process, which drives improved efficiency and utilization as creates less waste. Given Axalta’s recent innovations for technology and manufacturing, we are able to provide new color and appearance trends along with the protective and durability benefits that will enhance the growth and demand for powder coatings.”
Axalta’s Heflin said that all end segments are providing continued opportunities for growth.
“This is especially true for the construction and general industrial segments,” he added. “Powder costing services supporting protective and infrastructure applications are accelerating as focus and attention in these segments is driving further investment. In addition, we’ve invested in innovation to provide enhanced durability and protection properties. Additionally, we’ve developed new colors and aesthetics. The recent innovations we’ve made to our powder coating solutions help to broaden the applications for powder technology.”
Meanwhile, the Asia Pacific region is a key market for powder coatings.
“Asia Pacific has been the fastest growing coatings market for powder with an estimated growth rate of roughly 5%, followed by Europe,” Verdun said. “The key drivers of growth include GDP, residential and architectural construction, industrial and automotive production.”
“Europe has been a leader in the usage of powder coatings,” Heflin noted. “As new innovations are introduced, the demand continues to strengthen in all regions, particularly in the Americas and Asia Pacific. The powder coatings business has truly become a global market given customers have expanded their global footprint and are requiring even more consistency in the coatings developed in each of their locations. Axalta has the technology and global footprint to provide consistent and quality products along with local specialized service to our global customers.”
New Products
To meet the needs of end users, powder coatings manufacturers have been formulating innovative products. For example, PPG introduced its PPG Coraflon Platinum.
“We’ve launched a few new products this year, with the most recent being PPG Coraflon Platinum,” said Verdun. “This breakthrough powder coating combines durability with aesthetics, offering FGIA/AAMA 2605-compliance in a wide range of colors and finishes. Its wide range of colors is made possible by an expanded gloss range of 5-85 (versus 25-70 for FEVE powders), which allows it to achieve the look of anodized aluminum when specific in a matte finish. Additionally, it offers high transfer efficiency that’s a 20% improvement over standard FEVE powders, reducing waste and touch up. This benefit makes it an ideal solution for coating everything from window frames and building panels to storefronts. At PPG, we are committed to innovating in powder and focused on developing benchmark technologies that will solve our customers’ most pressing problems while being ahead of regulatory needs.”
PPG also launched its PPG ErgoLuxe powder coatings for metal office furniture. Designed for applications such as seatings, desks, cabinets and more, PPG reports that PPG ErgoLuxe powder coatings offer a first-pass transfer efficiency rate of up to 85% and the ability to reclaim and reuse overspray.
PPG’s ErgoLuxe Eco contains up to 13% recycled polyethylene terephthalate (rPET); the company reports that since 2017, PPG has used more than 6 million pounds of rPET to manufacture its coatings.
PPG is also active in the heat-sensitive wood and wood-composite market, introducing its PPG ENVIROCRON HeatSense Powder Coating. PPG reports that the coating can cure in as few as five minutes at 250°F, as well as accommodate the shrinking and swelling of wood over the finished product’s lifetime.
PPG Envirocron HeatSense coating can be cured quickly in a convection or infrared (IR) oven and is fully reclaimable. The coating is formulated without volatile organic compounds (VOCs) and hazardous materials.
“Powder coatings have long been valued on metal substrates for their durability and low carbon footprint,” said Verdun in launching the product. “The introduction of PPG Envirocron HeatSense coating enables us to transfer those benefits to key wood coating markets, such as cabinetry, office furniture and building products.”
Other powder coatings suppliers are actively developing new products. AkzoNobel expanded its powder coatings portfolio with its durable Interpon D2525 Flex. After the introduction of Interpon D2525 Structura Flex, the line has now been extended to the full-color range and is also available in gloss, satin and matt for the European market. Interpon D2525 Flex is designed for windows, doors and other aluminum features that need post-powder bending.
“Architects are increasingly moving towards superior durability to create built environments that inspire and endure. And because we’re always looking to innovate, we’ve extended the range of our pioneering solution to further support architects in creating a lasting legacy, with powder coatings that deliver quality, reliability and performance second to none,” said Remco Stokhof, European segment manager for architectural coatings at AkzoNobel’s Powder Coatings business, in introducing the product.
Axalta is also actively developing new powder coatings, adding the SuprAnodic Collection, expanding its range of weather-resistant metallic effect powder coatings from the Alesta SD SuperDurable product portfolio.
“We introduce more than 25,000 new color technologies each year and work to provide our customers with innovative and sustainable solutions that make their products last longer and perform better,” Heflin said. “These eco-friendly technologies are better for the environment, cost effective, require less energy consumption and support our sustainability goals and those of our customers.
The company reports that the QUALICOAT Class 2 and GSB Florida 3 (Master) certified powder coatings convince with excellent UV and weather resistance and easy application, making it ideal for outdoor architectural applications and exterior design.
“At Axalta, we are intensively engaged with both the developments that influence architecture and the requirements of the coating industry. Based on this information, we develop appropriate solutions that make coating processes easier, more reproducible and more sustainable,” said Ludovic Béal, product & marketing leader architecture & furniture at Axalta Powder Coatings in EMEA, in announcing the new product line. “This includes ensuring that our metallic products are manufactured using the latest bonding technology giving them their low gloss, optical depth and fascinating metallic effect, which, in combination with the new colors, enable architects and designers to set extraordinary accents on buildings and objects.”
TIGER Drylac added two new color additions – Sunrise Black and Tropical Red – to its Metallics product line. TIGER Drylac reports that its Flip-Flop Metallics change colors in different lighting conditions and at different angles, which offers sparking metallic effects in weather resistant, durable powder coating.
