The paint industry in China is entering a period of adjustment as recent layoffs at China Resources Coatings have not yet eased the pressure. Meanwhile, the Guangdong Provincial Quality Supervision Bureau released its latest report on wood coating products, revealing that 14 batches failed quality inspections, with an unqualified product discovery rate of 6.1%. This has raised concerns about the overall health of the sector, which has long been plagued by negative news.
In a recent inspection, the bureau tested 229 batches of wood coatings from 179 companies across nine cities, including Guangzhou, Shenzhen, Zhuhai, Foshan, and others. Among these, 14 batches were found to be substandard, with issues ranging from high levels of volatile organic compounds (VOCs) and halogenated hydrocarbons to poor yellowing resistance and pencil hardness. These findings highlight serious safety and quality concerns within the industry.
Several well-known brands were found to have exceeded safe limits for harmful substances. For example, Xinghanbang NC four-point clear topcoat, Australian Flag Oxygen Bar semi-matte clear topcoat, and Crown Coatings PU5 dumb clear topcoat all had excessive VOCs or halogenated hydrocarbons. These chemicals are known carcinogens and can pose severe health risks. Similarly, products from Shenzhen Ally Chemical and Huizhou Changrun Coating were also found non-compliant, particularly in terms of yellowing resistance, a critical performance indicator for coatings.
The growing number of substandard products has caused instability in the paint market, with many investors and consumers expressing concern. The industry's rapid expansion over the past few years has led to fierce competition, with many companies opting for low-cost strategies that compromise quality. As a result, counterfeit and low-quality products have flooded the market, making it difficult for legitimate brands to compete fairly.
According to a senior executive from a Shunde-based company, the paint industry is still in its early stages of development. Unlike more mature sectors, the domestic market lacks strong, established brands, and most local companies are still in the brand-building phase. "It's easy to make mistakes if you rush," he said. He pointed out that weak market supervision, low entry barriers, and a lack of leading enterprises have contributed to an environment of chaotic growth, where price wars are common and innovation is often overlooked.
The executive believes that the industry is on the verge of a major shake-up. "This is a signal that the market will soon clean up," he added. With increasing competition, many smaller and less competitive firms are likely to be eliminated. However, he emphasized that survival now depends on technological innovation and strong brand development. "We need to invest in new technologies to ensure our products are safe, durable, and competitive," he said.
For the paint industry to thrive, it must move beyond imitation and focus on real innovation. Only then can it build trust with consumers and sustain long-term growth. The current challenges may be tough, but they also present an opportunity for the industry to evolve into a more professional and responsible sector.
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