The key factors driving growth in the bio-based coatings market include stringent environmental regulations, increasing consumer demand for sustainable products, improvement in bio-based resin and polymer technologies, and the increasing number of applications in industrial and commercial segments.

Parag Shah and Chirag Tripathi, MarketsandMarkets.

These factors are reshaping the industry into an eco-friendly alternative with greater product performance and higher adoption across a range of sectors, including construction, packaging, automotive, and furniture. The market for bio-based coatings is projected to grow from EUR 12.75 billion in 2024 to EUR 22.04 billion by 2030, at a CAGR of 9.6 %, between 2024 to 2030.

Europe led the bio-based coatings revolution with innovation and sustainability

Europe seems to be the leading market for bio-based coatings, due to stringent environmental regulations, government regulations, and a strong customer desire for sustainable goods. The region’s proactive effort to reducing carbon footprint and minimising the use of hazardous chemicals fueled the fastest shift from traditional petrochemical coatings to eco-friendly alternatives. Europe’s leadership is also largely due to the regulations established by the European Chemicals Agency (ECHA) and REACH (the Registration, Evaluation, Authorization, and Restriction of Chemicals). These restrictions set severe limitations on volatile organic compounds (VOCs) and other pollutants, encouraging industry to adopt bio-based alternatives. Additionally, the EU Green Deal and Sustainable Product Policy Initiative provide strong incentives for the development of bio-based materials, encouraging innovation in renewable coatings.

On the other hand, the main driver is technological advancements in bio-based resins and polymers: European chemical giants such as Akzo Nobel, BASF, and Arkema are investing more and more in research efforts related to bio-based alkyds, polyesters, and waterborne coatings to provide the highest possible level of product performance and durability without sacrificing environmental sustainability. Furthermore, the growing use of bio-based coatings in traditionally important industries such as building, packaging, automotive, and furniture has boosted this industry tremendously. Demand for green buildings and sustainable packaging solutions is particularly strong in Germany, France, and the Netherlands, with both consumers and companies pushing for the use of sustainable materials. With supportive policies, rapid advancements in bio-based technologies, and increasing corporate commitments to sustainability, Europe is set to maintain its dominance in the global bio-based coatings market for years to come.

Alkyd coating segment holds the major share of bio-based coatings

Alkyd coatings dominated the bio-based coatings market due to their superior performance, cost effectiveness, and extensive industrial applications. Alkyd coatings are made from natural oils and fatty acids, making them eco-friendly alternatives to petroleum-based coatings. They are popular coatings for construction, automotive, packaging, and furniture because to their high adherence, durability, and weather resistance.

One of the primary advantages of bio-based alkyd coatings is their low VOC content, which complies with environmental laws such as those imposed by the EPA and ECHA. The development of high-solid and aqueous alkyd forms, which improve their performance in terms of sustainability and environmental challenges, represents the state of the art as well. The rising trend toward green building materials has increased demand for low-emission coatings, with alkyd coatings playing an important role. Their self-crosslinking capabilities, along with resistance to moisture and UV light, make them ideal for architectural coatings and wood treatments. Alkyd coatings are likely to maintain their dominance in the bio-based coatings market as bio-based resins and raw materials continue to innovate, hence aiding the worldwide move to sustainable and eco-friendly coating solutions.

Bio-based coatings gain momentum in construction industry

Building and construction is the dominant industry in the bio-based coatings market, owing to the growing demand for environmentally friendly, low-VOC, and sustainable products. Furthermore, with a growing emphasis on environmental issues, the industry is enforcing stricter standards for volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). Thus, bio-based architectural paints, wood varnishes, and protective finishes are rapidly gaining popularity in the building business.

Government initiatives to promote green buildings and energy-efficient infrastructure have accelerated the introduction of bio-coatings. Building regulations and sustainability certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) exist in Europe and North America, all of which aim to promote the use of low-emission coatings.
Bio-based coatings provide exceptional durability, weather and heat resistance, making them appropriate for both interior and outdoor walls, floors, and structural components. These include recent advancements in bio-based alkyds, polyesters, and polyurethane coatings, which have improved adhesion and protective qualities, boosting their usage in interior, commercial, and industrial building. With rising urbanisation, infrastructural expansion, and a strong need for sustainable construction materials, building and construction will continue to be the most important application area in the bio-based coatings market for some time.

Key market players and recent developments

The key manufacturers of bio-based coatings are Akzo Nobel, PPG Industries, Sherwin-Williams, Nippon Paint Holding, Stora-Enso, Tremco, ICA, Chenyang, and Cortec. These players are actively present in the market and undertook recent developments such as new product launch, mergers and acquisitions, and expansion etc.

Future market trends

Looking ahead, several trends are poised to shape the future of bio-based coatings:
Sustainable solutions: Sustainability is no longer a choice but a necessity in the coatings industry. As regulations tighten and environmental awareness grows, coatings manufacturers are increasingly turning to sustainable coating solutions. Bio-based, recyclable, and low-emission coatings are gaining traction, aligning with the industry’s commitment to reducing carbon footprint and minimizing environmental impact. Moreover, advancements in eco-friendly formulations and manufacturing processes are driving the adoption of sustainable coatings across supply chain, from raw materials to end-of-life disposal.

Smart coatings: The incorporation of smart functions into vehicle coatings marks a significant shift in surface technology. Smart coatings with self-healing, cleaning, and anti-fogging qualities provide convenience, safety, and comfort for car occupants. Self-healing coatings may automatically fix tiny scratches and defects, minimising the need for costly repairs and refinishing.

Self-cleaning coatings keep vehicles clean and reduce the need for frequent car washes. As automobiles become more connected and driverless, smart coatings will improve both user experience and performance. Digitalisation and Industry 4.0: Digitalisation of production processes is altering the coatings sector by increasing efficiency, accuracy, and personalisation. Industry 4.0 technologies, including AI, IoT, and robots, are being incorporated into coating formulation, application, and quality control processes. Al-driven formulation design enables customised coatings based on performance needs and environmental conditions, utilising appropriate additives. IoT-enabled sensors monitor coating application parameters in real-time, assuring uniformity and quality during manufacturing. Adoption of digital technology in the coatings business is expected to increase as production becomes more digitalised.

Conclusion

The market for eco-friendly paints is expanding because of several causes, including new technology, environmental regulations, and consumers’ increasing awareness of the environment. As petrochemical coatings become less popular, alternatives based on renewably sourced feedstocks like seed oils, lignin, and polysaccharides have been identified for answering those emerging needs. These coatings would not only be environmentally friendly but also provide excellent resistance to durability, adhesion, and weather, covering industries like construction, automobile, packaging, and furniture. Europe is in the forefront of this shift to bio-based coatings because of the EU Green Deal and REACH’s strict compliance requirements. The development of bio-based alkyds, polyesters, and polyurethane coatings, as well as innovative nanotechnology and self-healing techniques, will result in improved performance and sustainability.

The construction industry drives this need through green building efforts and VOC standards. It must be noted that bio-based coatings will continue growing under propelling policies, investments in R&D, and corporate commitments toward sustainability, contributing to a greener future for the coatings industry.