HIGH POINT – A report from market research firm Fact.MR predicts some changes in the global finishing market as applications in furniture, automotive and architectural industries creases future growth opportunities. One of the biggest shifts occurring in the industry, the report notes, is increasing demand for water-based lacquer finishes vs. more traditional solvent based finishes.
End users, the report said, continue to prefer solvent – or petroleum based – lacquers due to their performance advantages. This is due to a range of features such as easy blending, competitive pricing and quick drying the report said.
“On account of these factors, nitrocellulose will maintain its lead as the preferred product type…with polyurethane lacquers closing in on the second spot,” the report said, noting that lacquer applications continue to remain concentrated in furniture, architectural and automotive industries, which collectively accounted for 80% volume share of the market. The report added that the furniture industry is the biggest end use industry for lacquers globally and that it will continue to be the “biggest demand center in the near future.”
However, researchers noted that concerns over VOC (volatile organic compound) emissions and more stringent regulations are driving the demand for water-based lacquers.
“The lower growth doesn’t undermine the fact that interest in water-based solvents is gaining ground, as compliance advising costs and evolving preference fuel demand,” Fact.MR said.
Excluding Japan, the report said, the Asia Pacific market is the largest market for lacquers, followed by Europe and North America. In addition to being a major consumer of lacquers, the region also has been a prominent exporter to North America and Europe.
Yet the report also notes that heightened regulations, combined with increasing labor costs in emerging countries, have led to a steady decline of exports of late. End-user demand for high-quality, water-based solvents, it added, also has led Asian manufacturers to change their “suite of offerings.”
While woodworking is considered the leading application segment for lacquers globally, metal and plastics are other prominent application areas for lacquers, the report concluded.
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