Analysis of the scale of the coatings market 'Low-price' competition has led to a reduction in the market size!

In terms of China's coating market demand, because coatings are widely used on the surface of various metals, wood, cement, masonry, leather, fabrics, plastics, rubber, glass and paper, and China has a huge volume of real estate, automobiles and other industries. Therefore, the scale of China's demand for coatings is also very large. According to data from the National Bureau of Statistics, in 2019, China's paint sales were 24.161 million tons, a year-on-year increase of 38.3%. According to preliminary calculations, China's paint sales in 2020 will be approximately 24.35 million tons.

The average product price continues to fall

Although the sales volume of coatings in China is on the rise, the revenue of the entire industry is on the decline. This is mainly due to the serious homogeneity of the low-end products in the coatings industry in China and fierce competition. In 2020, the market share of TOP10 companies nationwide is only 17.46%, the market is fragmented, and competition is intense.

Under fierce competition, the "price war" in China's domestic coatings industry has become increasingly fierce, leading to a downward trend in the overall price of products in the industry. According to data from the China Coatings Industry Association, in 2016, the average price of products in the Chinese coatings industry was 22,900 CNY/ton; by 2020, the average price of products in the Chinese coatings industry fell to 12,400 CNY/ton.

"Low price" competition leads to a reduction in market size

Under the influence of "low-price" competition, although China's paint supply and demand are increasing, the overall industry revenue is declining. According to data from the China Coatings Industry Association, from 2017 to 2020, the total revenue of the main business of Chinese coatings companies above designated size continued to decline. In 2016, the revenue of coatings companies above designated size nationwide reached 435.45 billion yuan, and by 2020, the revenue of coatings companies above designated size was only 305.43 billion yuan.

"Five-year" plan target downgraded

From the formulation of the "Thirteenth Five-Year" and "14th Five-Year" planning goals for the coating industry, it can also be found that the industry's market expectations for the coating industry are quite different. Among them, the "13th Five-Year Plan" indicates that the total output value of the coatings industry will reach about 560 billion yuan by 2020. However, by the "14th Five-Year" plan, the target for the total output value of the coatings industry in 2025 is set to 370 billion yuan.