Paints and coatings: Feedstocks
Why white pigment is the costliest thing in your paint
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.A paint maker buys most of its inputs: TiO2, resins and monomers, solvents, extenders and additives. TiO2 and acrylic or vinyl monomers are the biggest cost items, and both follow oil and the TiO2 cycle. Scale in buying and backward integration into emulsions and monomers (Asian Paints' VAM plant) decide gross margins more than plant cost does.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Ti Titanium | about 150-250 kg per t of decorative emulsion (indicative) | white opacity | often the largest single raw material, about 20-30% of raw material cost (indicative) | titanium_dioxide tile (about 57% of TiO2 goes to paint); indicative |
| Oil Crude oil | about 100-200 kg binder solids per t (indicative) | film-forming binder | about 25-35% (indicative) | indicative |
| Oil Crude oil | about 300-500 kg per t of solvent-borne paint; little in water-borne (indicative) | carrier | about 10-15% for solvent-borne (indicative) | indicative |
| Stn Crushed stone | about 200-400 kg per t (indicative) | filler and matting | small; about 54 kg CO2e per t (Omya) | Omya sustainability toolkit; indicative |
| Kao Kaolin & clays | about 50-150 kg per t (indicative) | filler, spacing TiO2 | small | indicative |
| Additives (dispersants, thickeners, biocides, driers) | about 10-30 kg per t (indicative) | flow, stability, preservation | about 5-10% (indicative) | indicative |
Who is low-cost, and why
Plant cost is minor; buying power, product mix and distribution decide margins. Asian Paints' gross margin moved from about 44% (FY21) to about 37% (FY22) when raw materials spiked, then back to 44% by Q1 FY27 (ICICI Direct; PL Capital). Integrated groups (Grasim with chemicals, Asian Paints with VAM) aim to capture monomer margins.
Raw materials on the commodity table
Ti TitaniumOil Crude oilWhat it is made into
| Product | Note |
|---|---|
| TiO2 Titanium dioxide | upstream: about 57% of TiO2 goes into paints and coatings |
| AAc Acrylic acid | upstream: acrylate esters for emulsions |
| EPX Epoxy resins | upstream: protective and can coatings |
| PU Polyurethanes (MDI, TDI, polyols) | upstream: 2K PU topcoats |
| Pig Organic pigments | upstream: about 45% of colour pigment value goes to coatings |
| CB Carbon black | upstream: black pigment |