Paint industry development will enter the adjustment period

The paint industry in China is currently undergoing a critical adjustment phase, as recent events have raised concerns about product quality and safety. Following the layoffs at China Resources Coatings, the Guangdong Provincial Quality Supervision Bureau released its latest monitoring report on wood coatings, revealing that 14 out of 229 batches tested were found to be substandard, resulting in an unqualified rate of 6.1%. This alarming figure highlights the ongoing challenges facing the sector, where low-quality products and unscrupulous practices continue to plague the market. Among the不合格 products identified, several key issues were found, including excessive levels of volatile organic compounds (VOCs), halogenated hydrocarbons, methanol, and poor yellowing resistance. These substances are known to pose serious health risks, including potential carcinogenic effects. Notably, several well-known brands, such as Xinghanbang, Aoco Chemical, and Crown Coatings, were found to have products with VOCs or halogenated hydrocarbon levels that exceeded regulatory limits. The findings have sparked public concern and shaken investor confidence in the industry. In addition to these chemical safety issues, other products failed to meet standards in terms of durability and performance. For example, Shenzhen Ally Chemical Co., Ltd.’s “Allies” NC color-resistant white primer and Huizhou Changrun Coating Co., Ltd.’s “Changrun” NC matte clear topcoat did not meet required specifications. Similarly, Guangdong Chiba Song Chemical Co., Ltd. and Shenzhen Meibo Paint Co., Ltd. faced similar issues with their yellowing resistance and finish quality. These failures indicate a broader problem within the industry, where quality control is often overlooked in favor of cost-cutting measures. The instability in the paint market has been exacerbated by rapid growth and fierce competition. Many companies, especially domestic ones, have struggled to maintain quality while keeping prices low. As one industry insider from Shunde noted, the paint sector is still in its early stages of development, with most domestic brands lacking the strength and reputation of international players. Without strong leadership or effective regulation, the industry remains vulnerable to disorder and exploitation. According to the same source, the lack of high-quality, innovative products has led many companies to adopt a race-to-the-bottom strategy, focusing on price rather than value. This approach has created a cycle of unhealthy competition, where only the cheapest options survive. However, this model is unsustainable in the long run, and the industry is expected to undergo a major shake-up in the near future. “The time for a big cleanup is coming,” the insider said. “Just like other sectors in the home industry, the paint market will eventually consolidate.” He added that the recent layoffs at Huarun Coatings were not due to external pressures but rather a sign of the industry’s inevitable evolution. With growing consumer awareness and stricter regulations, only those companies that invest in innovation and brand building will be able to thrive. Innovation, he emphasized, is the key to long-term survival. Companies must focus on developing new technologies that improve product performance, safety, and lifespan. Only through genuine R&D and strategic branding can domestic paint manufacturers compete with global giants. The path forward may be challenging, but it is essential for the industry to move beyond imitation and embrace real progress.

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