India Paints & Coatings Market Outlook to 2028

India Paints & Coatings Market Overview

India Paints & Coatings market was valued at USD 8.3 Bn in 2023. The market size is driven by rapid urbanization, increasing disposable incomes, and a booming real estate sector. Additionally, government initiatives like the Smart Cities Mission and Housing for All are bolstering the demand for decorative paints.

Key players in the Indian Paints & Coatings market include Asian Paints, Berger Paints, Kansai Nerolac Paints, Akzo Nobel India, and Shalimar Paints. These companies dominate the market through their wide distribution networks, continuous product innovation, and strong brand recognition.

In 2023, Asian Paints announced an investment of INR 2,000 crores to set up a new manufacturing facility in Madhya Pradesh. The new facility is expected to have a capacity of 4 lakh kiloliters per annum and is expected to be commissioned in three years after acquiring the land.

India Paints & Coatings Current Market Analysis

The continuous expansion of urban areas and infrastructure projects such as highways, airports, and metro rails drive the demand for paints and coatings. This growth is particularly pronounced in developing regions where rapid urbanization is accompanied by increased construction activities, further stimulating the paints and coatings market.

Paints & Coatings market significantly impacts the construction, automotive, and industrial sectors by providing essential products for maintenance, aesthetics, and protection. The demand for paints expands at a rate 1.5 to 2 times higher than the GDP.

The Western region of India, particularly Maharashtra and Gujarat, dominates the Paints & Coatings market. These states have a high concentration of industrial activities, robust infrastructure, and significant residential and commercial construction projects.

India Paint & Coating Market Segmentation

The India Paints & Coatings Market can be segmented based on several factors:

By Product Type: The India paints & coatings market is segmented by product type into decorative paints, industrial coatings and specialty coatings. In 2023, decorative paints reign as the most dominant sub-segment, holding a substantial market share. Decorative paints dominate the market due to the high demand for residential and commercial applications, driven by the increasing urban population and real estate developments.

By Technology: The India paints & coatings market is segmented by technology into water-based coatings, solvent based coatings and powder coatings. In 2023, Water-based Coatings emerges as the most dominant sub-segment, commanding a significant percentage of the market share. Water-based coatings lead the market due to their lower environmental impact and compliance with regulatory standards.

By Region: India paints & coatings market is segmented by region into north, south, east & west regions. In 2023 West region prevails with a significant market share. West India, comprising states like Maharashtra and Gujarat, is a major industrial hub. These cities host a significant number of manufacturing industries, including automotive, textiles, chemicals, and pharmaceuticals.

India Paints & Coatings Market Competitive Landscape

Company

Establishment Year

Headquarters

Asian Paints

1942

Mumbai, Maharashtra

Berger Paints

1923

Kolkata, West Bengal

Kansai Nerolac

1920

Mumbai, Maharashtra

Akzo Nobel India

1933

Gurugram, Haryana

Shalimar Paints

1902

Gurugram, Haryana

In 2024, Shalimar Paints extends its product line with innovative solutions. The centre of the event was the HERO 5-in-1 Super Premium Interior Emulsion's triumph, accompanied by the launch of HERO Super Premium Exterior Emulsion and HERO Interior Exterior. These ensure crack-bridging capabilities and structural damage.

In 2023, Berger Paints launched a new range of eco-friendly paints, reflecting the increasing consumer demand for sustainable products. Berger Paints has launched its Green Horizon initiative, which is the company's endeavor to create a greener future and make its products and practices more environmentally responsible.

In April 2022, Akzo Nobel completed the acquisition of Grupo Orbis, a Colombian coatings company. This acquisition effectively strengthened Akzo Nobel's long-term position in the Latin American market. Grupo Orbis has a consolidated revenue of $388 million.

India Paints & Coatings Industry Analysis

India Paints & Coatings Market Growth Drivers:

Urbanization and Infrastructure Development: India's rapid urbanization encourages the demand for paints & coatings. In 2022, the urban population in India stood at 588 million. The government’s National Infrastructure Pipeline (NIP) has captured 9288 projects including highways, airports, and metro rail, driving substantial demand for industrial and decorative paints and coatings.

Rising Middle-Class Population: In 2021, the middle-class population in India was at 432 million which is propelling the demand for high-quality decorative paints. This demographic shift leads to increased home ownership and renovation activities, fueling the market for premium interior and exterior paints.

Industrial Sectors’ Growth: India's industrial sector has been witnessing a year-on-year growth of 5% in April 2024. The automotive industry, which is a major consumer of industrial coatings, produced over 25 million vehicles in 2023, which increases the demand for high-performance coatings.

India Paints & Coatings Market Challenges:

Raw Material Price Volatility: The Paints & Coatings industry heavily relies on raw materials like titanium dioxide and crude oil derivatives, whose prices are highly volatile. The price of titanium dioxide, a key pigment, surged by 20% in 2021 for rutile grade and 37% for anatase grade, impacting the production costs and profitability of paint manufacturers. Such price fluctuations lead to uncertain product pricing and financial planning challenges for the industry.

Environmental Regulations: Stringent environmental regulations regarding Volatile Organic Compounds (VOC) emissions pose a challenge for the Paints & Coatings industry. The Central Pollution Control Board (CPCB) of India mandates strict compliance with VOC limits in paints, compelling manufacturers to invest in eco-friendly formulations which increases production costs.

India Paints & Coatings Market Government Initiatives:

Smart Cities Mission (2015): The Smart Cities Mission aims to develop 100 smart cities across India with modern infrastructure and high-quality urban services. A total investment of Rs. 2.01 crores have been proposed by the 99 cities under their smart city plans. The initiative has significantly boosted the demand for industrial and decorative coatings.

Housing for All (2015): The Housing for All scheme, also known as Pradhan Mantri Awas Yojana (PMAY), was initiated in 2015 to provide affordable housing to the urban poor by 2022. By 2021, the scheme had sanctioned 11.3 million houses, thereby increasing the demand for paints and coatings in the residential sector.

India Paints & Coatings Future Market Outlook

India Paints & Coatings market is projected to grow significantly, driven by continuous urbanization, rising disposable incomes, and significant infrastructure developments.

Future Market Trends

Eco-friendly and Sustainable Products: The demand for water-based paints is expected to rise significantly as the share of water-based paints is expected to reach 75% by 2025, as consumers and industries increasingly prefer environmentally friendly options.

Painting Material Advancements: Nano-coatings, known for their superior performance in terms of durability and resistance, will be increasingly utilized in automotive and industrial applications. By 2025, the global market for nano-coatings is projected to grow substantially, with India poised to contribute significantly to this growth.
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