Powder coating is a type of coating that is applied as a free-flowing, dry powder.The main difference between a conventional liquid paint and a powder coating is that the powder coating does not require a solvent to keep the binder and filler parts in a liquid suspension form.he powder may be a thermoplastic or a thermoset polymer. It is usually used to create a hard finish that is tougher than conventional paint. Powder coating is mainly used for coating of metals, such as household appliances, aluminium extrusions, drum hardware, and automobile and bicycle parts.