Analysis of the current situation and development trends of the paint market in China in 2020: The number of large-scale enterprises has declined, and the market is concentrating towards leading companies.

Aug 30,2021

In 2019, the national paint sales volume was 24.16 million tons, and the production volume was 24.09 million tons. In January-February 2020, China's paint production was around 950,000 tons, a significant year-on-year decline. The ongoing impact of the COVID-19 pandemic severely affected factory operating rates, and demand in both upstream and downstream markets was significantly pressured.

  In 2019, the national paint sales volume was 24.16 million tons, and the production volume was 24.09 million tons. In January-February 2020, China's paint production was about 950,000 tons, a significant decline year-on-year. The continuous impact of the COVID-19 pandemic severely affected factory operating rates, and upstream and downstream market demand was significantly pressured.

  Paint production has resumed growth.

  According to data from the China Coatings Industry Association, in 2017, China's paint production reached 20.41 million tons, breaking through the 20 million ton mark for the first time. In 2018, among large-scale industrial enterprises with over a certain size, the total output reached 17.6 million tons from 1,336 companies throughout the year. From January to September in 2019, China's paint industry total output was 18.526 million tons, an increase of 9.2% compared to the same period in 2018.

  According to the "2019 Annual Statistics on China's Paint Sales Volume and Production-Sales Rate" published by the National Bureau of Statistics, in 2019, the national paint sales volume was 24.16 million tons. The sales volumes for each quarter from Q1 to Q4 in 2019 were respectively: 3.91 million tons, 5.69 million tons, 11.96 million tons, and 12.19 million tons. The production-sales rates for each quarter were respectively: 102.0%, 100.7%, 96.1%, and 99.7%. Based on these rates, it is calculated that the total output of China's paint industry in 2019 was approximately 24.09 million tons.

  According to data from Guangzhou Chemical Industry Group, in January-February of 2020, China's paint production was about 950 thousand tons which represented a significant year-on-year decline; starting from late January of that year due to continuous impacts of COVID-19 pandemic severely affected factory operating rates and upstream and downstream market demand.

  (Note: The paint industry output is calculated based on the "annual output" statistics from large-scale enterprises as reported by China Coatings Industry Association without adjustments for changes in the number of such enterprises.)

  China's paint production is mainly concentrated in East China and Central South regions. Among them, Guangdong's paint production in 2018 was approximately:3942800 tons; Shanghai's at approximately:2001000 tons; Jiangsu's at approximately:1920900 tons; accounting for about:22.4%,11.4% and10.9% respectively of national paint production ranking them as top three.

  According to Guangzhou Chemical data for January-February of2020,the proportions of paint production in East China,South China,and Central South regions were45 .5%,25 .3%,and14 .1%;the top three regions by output were Guangdong ,Shanghai ,and Jiangsu ,accounting for about49 %of national total.

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