Year-End Review | 2023 Global Coating Company Rankings, Major Events, and Sustainable Bio-Based Coatings R&D status

2023 is a year of both opportunities and challenges for the coatings industry. On the one hand, the economic downturn, sluggish real estate market, and rising raw material prices have led to sluggish demand in the coatings market and a general decline in corporate profits, leading to a further recovery in corporate mergers and acquisitions. The current coatings industry is facing multiple pressures from shrinking demand, downgraded consumption, and escalating involution. International coatings giants have shut down activities related to loss-making factories and laid off employees to alleviate cost pressures.

On the other hand, coating companies are also struggling to break through in response to challenges and accelerate adjustment and transformation. The environmental protection, functionality and development trends of coating products are increasingly emerging. Bio-based coatings are developing rapidly and may replace petroleum-based products as the representative of sustainable coating products in the future.

1. 2023 Global Paint Company Performance Rankings!

The American Coatings World magazine released the 2023 Top Companies Report, announcing the annual global paint & coating production rankings, with PPG, Sherwin-Williams and AkzoNobel retaining the top three spots. 

2. Major M&A Events in the Paint & Coatings Industry in 2023

In recent years, the competitive landscape of the global coatings industry has also been quietly changing. In 2023, the industry is in a period of deep special adjustment, which creates better conditions for mergers and acquisitions. It can be said that mergers and acquisitions integration will become a trend and normality, and the degree of concentration will gradually increase. This article takes stock of some mergers and acquisitions in the coatings industry in 2023, including Eastman, Ai-RED, Nippon Paint, NPT, Kansai Paint, CWS and other companies.

3. Take Stock of the International Coatings Groups that Announced Closures and Layoffs in 2023 

Along with the economic downturn and declining investment, many chemical companies around the world are facing severe challenges in 2023. The performance of large groups is still not optimistic. The profits of many companies have dropped by more than 50%, and the sharp decline in earnings combined with the sluggish market has also throw them into new predicaments.

In order to cope with this continued uncertainty, paint companies that have sensed a potential crisis are saving costs by continuously divesting, selling, or even shutting down factories and laying off employees to achieve cost reduction and efficiency improvement. In 2023, nearly 20 giants such as Dow and BASF have made relevant burden reduction measures.

4.Global New Coatings Development Hotspot—Bio-Based Coatings

The global production of bio-based chemicals and polymer materials has now reached an annual output of 50 million tons, and its annual output value reached US$10 billion to US$15 billion in 2022. 

As early as 20 years ago, Europe, the United States, Japan and other countries have begun to study new bio-based coating technologies. Under this circumstance, a lot of research has been carried out on the modification of modified polyurethane, epoxy vegetable oil and alkyd resin using vegetable oil as raw material.

Chinese companies are also investing a lot of energy in the research of bio-based coatings. This article shows the research results of bio-based coatings of Chinese enterprise like Opmaterial, SKSHU, Chenyang Waterborne Paint, BADESE, Carpoly.

In addition, chemical giants like AkzoNobe, Covestro, Mitsubishi Chemical, BASF have also successively demonstrated the R&D results of bio-based coatings, leading more paint & coating companies to develop environmentally friendly products and promote green economic and social development. 

1）BASF Announces Production of Bio-based 2-Ethylhexyl Acrylate for Sustainable Coatings and Adhesives

On September 25th, BASF announced that its integrated site in Ludwigshafen, Germany has achieved production capability for bio-based 2-ethylhexyl acrylate, a monomer used in the formulation of sustainable acrylic ester systems for coatings and adhesives. This represents the latest advancement in BASF's bio-based technologies, following the introduction of bio-based 1,4-butanediol (BDO) and bio-based plastic antioxidants.

2) AkzoNobe Uses Rapeseed and Rosin for First Time to Make Bio-Based Interior Coating for KIA Motors

Dutch chemical company AkzoNobel supplies bio-based coatings to KIA Motors. KIA Motors will use the coating on the interior of its new EV9 electric SUV, marking the first time the automaker has specified an interior bio-based coating.

The product is made from two biorosins, one extracted from rapeseed and the other from rosin. This paint will be used on the interior door switch panel of EV9. In addition, AkzoNobel also provides coatings for the rest of the model's interior.

3) Covestro Launches Impranil® CQ DLU, a New Partially Bio-Based Waterborne Polyurethane Dispersion for Textile Coatings 

To combat climate change, the chemical industry needs to move away from petroleum and other fossil raw materials and towards renewable feedstocks. Covestro is therefore increasingly using alternative raw materials, including biomass feedstocks. For example, the company has now launched Impranil® CQ DLU, a new aliphatic polycarbonate copolyurethane dispersion for textile coatings, which contains approximately 34% of the carbon content from plants. The pure petroleum-based version of Impranil® DLU has always been popular with customers, and the launch of Impranil® CQ DLU broadens Covestro’s current portfolio of bio-based dispersions for textile coatings.

4) Using Bio-Based Polyurethane Coatings, Mitsubishi Chemical and Lawson Were Selected as Japan’s Green Transformation Cases

Mitsubishi Chemical is applying polycarbonatediol to decorative coating systems. According to news from Lawson, Lawson is cooperating with Mitsubishi Chemical to use plant-based Polycarbonatediol produced by Mitsubishi Chemical for the indoor and outdoor wood decorative coatings of its convenience stores in Hokkaido, Japan.