India Paints and Coatings Market 2024–2033

Reports Description

India Paints and Coatings Market was valued at USD 13,405.4 Million in 2024 and is expected to reach USD 31,706.3 Million by 2033, at a CAGR of 8.75% during the forecast period 2024 – 2033.

Paints and coatings are like a protective and colourful second skin for various surfaces. Paint is a pigmented liquid that dries to an opaque layer, primarily used for decoration. Coatings can be clear or coloured, and their main function is to protect the underlying material from things like rust, scratches, or water damage.

Both use similar ingredients like binders, solvents, and pigments, but coatings can have additional performance features. The paint and coatings market is huge, encompassing everything from the paintbrush in your hand to industrial anti-corrosion treatments for bridges. It’s divided into two main categories architectural and industrial.

Architectural coatings are what you’d use on your house, while industrial coatings are used on everything from cars to airplanes. The market is constantly evolving, with a focus on eco-friendly, low-VOC (volatile organic compound) paints and coatings that are better for both people and the environment.

India Paints and Coatings Market: Growth Factors

Rapid Urbanization and Infrastructure Development

India’s burgeoning population and urbanization have been driving significant demand for paints and coatings in the country. With urbanization comes the need for new infrastructure, residential buildings, commercial spaces, and industrial facilities, all of which require paint and coating applications.

According to the Ministry of Housing and Urban Affairs, India’s urban population is projected to reach 600 million by 2031, indicating substantial potential for the paints and coatings market. Additionally, government initiatives like Smart Cities Mission and Housing for All are further propelling construction activities, thereby boosting the demand for paints and coatings.

Growing Automotive Sector

The automotive industry in India has been experiencing robust growth, fueled by rising disposable incomes, changing consumer preferences, and government policies promoting domestic manufacturing and electric vehicles. The increasing production and sales of automobiles necessitate coatings for protection, aesthetics, and customization purposes.

As per the Society of Indian Automobile Manufacturers (SIAM), India produced over 2.6 million passenger vehicles and 22 million two-wheelers in the fiscal year 2020-21. This surge in automotive production presents a significant opportunity for the paints and coatings market, particularly for specialized coatings catering to automotive applications like body paints, primers, and coatings for plastic components.

India Paints and Coatings Market: Restraints

Volatility in Raw Material Prices

The paints and coatings industry is highly dependent on raw materials such as resins, pigments, solvents, and additives. Fluctuations in the prices of these raw materials significantly impact the overall cost of production for paint manufacturers. Factors such as geopolitical tensions, supply chain disruptions, and fluctuations in crude oil prices can lead to volatility in raw material prices.

For instance, India primarily relies on imports for several key raw materials used in paint production, and any disruptions in the global supply chain can adversely affect the industry. This volatility poses a challenge for market players in maintaining stable pricing and profitability.

Stringent Environmental Regulations

Environmental concerns and regulations regarding volatile organic compounds (VOCs), hazardous air pollutants (HAPs), and other harmful emissions pose regulatory challenges for the paints and coatings industry in India. The government has been implementing stricter environmental standards to minimize the adverse impact of paint manufacturing and application on air quality and public health.

Compliance with these regulations necessitates investment in research and development of eco-friendly formulations, adoption of cleaner production processes, and implementation of waste management practices. Adhering to stringent environmental standards adds to the operational costs and regulatory compliance burden for paint manufacturers, impacting their competitiveness in the market.

India Paints and Coatings Market: Opportunities

Construction Sector Growth

The construction industry in India has been experiencing robust growth due to urbanization, infrastructure development, and government initiatives such as Smart Cities Mission and Housing for All. According to the Ministry of Statistics and Programme Implementation (MOSPI), the construction sector’s Gross Value Added (GVA) at current prices is estimated to have grown by 6.5% in FY 2022.

This growth indicates a substantial demand for paints and coatings, as these materials are integral to both residential and commercial construction projects. Furthermore, initiatives like the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to urban and rural populations, are driving the demand for paints and coatings in the residential construction segment.

The expansion of the real estate sector, coupled with increasing disposable incomes and changing lifestyle preferences, is expected to further boost the demand for aesthetically pleasing and durable coatings.

Rise in Eco-friendly and Sustainable Coatings

With growing environmental awareness and concerns over the health hazards associated with traditional solvent-based paints, there is a significant shift towards eco-friendly and sustainable coatings in India. The Indian government, through organizations like the Bureau of Indian Standards (BIS) and the Ministry of Environment, Forest and Climate Change (MoEFCC), has implemented regulations and standards to promote the use of low-VOC (volatile organic compound) and lead-free paints.

According to the Confederation of Indian Industry (CII), the demand for eco-friendly coatings is projected to witness a compound annual growth rate (CAGR) of over 12% during the forecast period. This trend is driven by factors such as increasing awareness among consumers, stringent environmental regulations, and the adoption of green building practices.

Manufacturers are investing in research and development to innovate and introduce sustainable paint formulations that offer performance benefits while minimizing environmental impact.

India Paints and Coatings Market: Segmentation Analysis

India Paints and Coatings market is segmented by uses, technology, resin type and end use application.

Based on uses, India Paint and Coatings market is segmented into Architectural Paints, Industrial Coatings, Wood Coatings, and Automotive Refinish Coatings. Among all these segments, Architectural Paints held the highest market share in 2023.

Architectural paints are used in a wide range of applications, including residential and commercial buildings, making them the largest subsegment in terms of volume and revenue. With the growth of the automotive industry in India, there is an increasing demand for automotive refinish coatings due to vehicle repair and maintenance needs.

Based on Technology, India Paint and Coatings market is segmented into Water-based Coatings, Solvent-based Coatings, Powder Coatings, and UV-cured Coatings. Among all these segments, Water-based Coatings held the highest market share in 2023.

Water-based coatings are environmentally friendly, low in VOCs (volatile organic compounds), and exhibit good performance characteristics, making them increasingly popular in various applications. UV-cured coatings offer advantages such as fast curing times, superior hardness, and reduced energy consumption, driving their adoption across industries.

Based on Resin Type, India Paint and Coatings market is segmented into Acrylic, Epoxy, Polyurethane, Alkyd, Polyester. Among all these segments, Acrylic held the highest market share in 2023. Acrylic resins are versatile, cost-effective, and widely used in architectural paints, industrial coatings, and automotive refinishing due to their excellent adhesion, weather resistance, and color retention properties.

Polyurethane resins offer exceptional durability, chemical resistance, and weatherability, making them increasingly preferred in high-performance coatings for applications such as automotive, aerospace, and industrial equipment.

Based on End-user Industry, India Paint and Coatings market is segmented into Construction, Automotive, Aerospace, Marine, Electronics, Furniture and Woodworking. Among all these segments, Construction held the highest market share in 2023.

The construction industry is the largest consumer of paints and coatings, driven by infrastructure development, residential construction, and commercial projects. India’s automotive sector is experiencing robust growth, with increasing vehicle production and sales, leading to higher demand for automotive coatings to meet quality standards and aesthetic preferences.

Report Scope

India Paints and Coatings Market: Regional Analysis

The India Paint and Coatings market exhibits diverse regional insights, reflecting the country’s cultural, climatic, and economic variations. In Northern India, characterized by extreme weather conditions including harsh winters and scorching summers, demand leans towards durable coatings with superior weather resistance.

Traditional preferences for vibrant colors also drive sales, especially in states like Rajasthan and Punjab, where colourful façades are integral to cultural aesthetics. In contrast, the Southern region, marked by a tropical climate, prioritizes coatings that offer protection against high humidity and heavy rainfall.

Preference for lighter shades to deflect heat is common in states like Tamil Nadu and Kerala. Additionally, the booming urban centers of Bengaluru and Hyderabad drive demand for high-quality interior paints, fueled by rapid infrastructure development and a burgeoning middle class.

In Western India, comprising Maharashtra and Gujarat, industrial growth and urbanization stimulate demand for industrial coatings, especially in the automotive and manufacturing sectors. Coastal regions like Mumbai also prioritize anti-corrosive coatings due to salt-laden air.

Meanwhile, in Eastern India, states like West Bengal and Odisha witness a blend of traditional and modern preferences, with a focus on cost-effective solutions and eco-friendly paints amidst growing environmental consciousness.

Overall, understanding these regional nuances is crucial for stakeholders in the India Paint and Coatings market to tailor their products and strategies effectively.

India Paints and Coatings Market: Recent Developments

• In October 2022, In a move towards self-sufficiency for key raw materials, Asian Paints announced a USD 324.20 million investment to set up a manufacturing facility for vinyl acetate monomer (VAM) in India. VAM is a crucial component in paint production. This backward integration strategy aims to reduce dependence on external suppliers and potentially improve profit margins.

• In November 2021, Recognizing the growing demand in the Indian market, Asian Paints committed USD 118.72 million to expand their Ankleshwar, Gujarat facility. This expansion will increase production capacity, allowing them to meet the rising demand for paints and coatings across the country.

• In March 2022, Focusing on efficiency and streamlining operations, Berger Paints partnered with o9 Solutions. This collaboration aims to gain end-to-end visibility into their supply chain. Improved visibility allows for better planning, reduced lead times, and potentially lower inventory costs.

List of the prominent players in the India Paints and Coatings Market:

• Asian Paints
• Berger Paints India Limited
• Kansai Nerolac Paints Limited
• Akzo Nobel India
• Indigo Paints
• Shalimar Paints
• Sirca Paints
• Nippon Paint India
• Sheenlac Paints
• JSW Paints
• Grasim Industries
• DuPont India
• PPG Industries
• Nippon Paint Holdings Co. Ltd
• Jotun India Pvt Ltd
• AkzoNobel N.V.
• BASF SE
• RPM International Inc.
• Masco Corporation
• National Paints
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Paints and Coatings Market is segmented as follows:

By Uses

• Architectural Paints
• Industrial Coatings
• Wood Coatings
• Automotive Refinish Coatings

By Technology

• Water-based Coatings
• Solvent-based Coatings
• Powder Coatings
• UV-cured Coatings

By Resin Type

• Acrylic
• Epoxy
• Polyurethane
• Alkyd
• Polyester

By End-user Industry

• Construction
• Automotive
• Aerospace
• Marine
• Electronics
• Furniture and Woodworking.