Powder coating composition which comprises a hybrid polymer system in granular form of a polymer A formable from monomer(s) by aqueous suspension polymerisation and a polymer B, different to A, which polymer system has been obtained using a process which comprises dissolving polymer B in monomeric material to be used in the formation of polymer A, polymerising the monomer(s) to form polymer A using an aqueous suspension polymerisation process, and removing the aqueous phase to form a hybrid of the polymers A and B in granular form, and wherein polymer A and polymer B bear functional groups for imparting curability to the hybrid polymer system, and wherein further the hybrid polymer system has a number average molecular weight within the range of from 1500 to 15,000.