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Raw material supply: A critical challenge for the European coatings industry

The European paint and coatings sector faces a raw material supply crisis that threatens its competitiveness. A report by the Berylls Group highlights geopolitical risks, rising costs of strategic resources like rare earths and nickel, and potential strategies to secure future supply chains.

Market Analysis
The shortage of strategic raw materials poses significant challenges for the European paint and coatings sector. Source: AI generated with OpenAI

The European coatings industry is increasingly grappling with challenges in securing critical raw materials. According to a recent report by the Berylls Group, dependence on imports and volatile geopolitical conditions are jeopardising the sector’s competitiveness. Strategic materials such as rare earths, nickel, and lithium are integral to the production of advanced technologies and modern coatings formulations.

Global supply chains remain under strain due to political tensions, trade restrictions, and environmental regulations. For European businesses, this means escalating costs for essential raw materials and the urgent need to explore alternative sourcing strategies. The report warns that price increases for critical resources are likely to persist, creating a pressing need for innovative solutions like recycling technologies and diversification of supply sources.

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Strategies for ensuring raw material security

The Berylls Group underscores the importance of adopting sustainable and diversified approaches to raw material supply. Key measures include developing recycling processes, leveraging bio-based alternatives, and establishing strategic partnerships with suppliers. These actions could enhance long-term supply chain resilience.

For the European paint and coatings industry, innovation in raw material substitution is essential for future growth. Approaches such as utilising nanotechnology, high-solid formulations, and UV curing could reduce dependence on scarce materials while advancing sustainability goals. By prioritising the reduction of critical raw material consumption, the sector can mitigate supply risks and strengthen its competitiveness in the global market.