India Paint Market Outlook to 2028

India Paint Market Overview

• The India paint market is valued at USD 8.7 billion, driven by the rapid urbanization and growing demand for housing and infrastructure projects across the country. The real estate sector's expansion, along with government initiatives such as "Housing for All" and the Smart Cities Mission, are major factors contributing to the increasing demand for both decorative and industrial paints. Rising consumer preference for durable, aesthetically appealing paints is also boosting the growth of the market, supported by continuous innovation from leading manufacturers.
• Cities such as Mumbai, Delhi, and Bengaluru dominate the paint market due to their high concentration of infrastructure projects and urban development. The growth of the automotive sector in Pune and Chennai also contributes substantially to the demand for industrial paints. Additionally, tier-II cities are experiencing rapid growth in housing and retail projects, leading to increased consumption of decorative paints, particularly in urban and semi-urban areas.
• The Indian government, through the Bureau of Indian Standards (BIS), has set strict standards for permissible VOC content in paints. As of 2023, architectural coatings are required to contain no more than 150 grams per liter of VOCs, while industrial coatings have a limit of 250 grams per liter. These regulations are part of a broader effort to reduce air pollution and promote eco-friendly products. Compliance with these standards is mandatory for all paint manufacturers operating in India, ensuring adherence to quality and safety measures.

India Paint Market Segmentation

The India Paint Market is segmented by product type, technology, resin type, application, and region.

By Product Type: The India paint market is segmented by product type into decorative paints, industrial paints, powder coatings, and speciality coatings. Decorative paints hold the dominant market share in the product type segmentation, driven by the ongoing demand for interior and exterior wall finishes in residential and commercial buildings. Brands like Asian Paints and Berger Paints have a stronghold in this segment due to their wide product range, catering to varying consumer preferences for textures, colours, and finishes.

By Technology: By technology, the India paint market is segmented into water-based, solvent-based, and powder coatings. Water-based paints dominate this segment, owing to their low environmental impact and growing consumer preference for eco-friendly products. These paints have become a preferred choice for homeowners and businesses due to their reduced volatile organic compound (VOC) emissions and superior performance in terms of durability and aesthetics.

India Paint Market Competitive Landscape

The India paint market is highly competitive, with a mix of domestic and global players offering a diverse range of products. The market is dominated by key players who leverage strong distribution networks, continuous innovation, and brand recognition to maintain their market positions. Companies like Asian Paints and Berger Paints lead the market due to their extensive product portfolios and focus on sustainability through low-VOC and eco-friendly paints.

India Paint Market Analysis

India Paint Market Growth Drivers:

• Infrastructure Development (Public and Private Projects): Indias rapid infrastructure development, driven by government projects like the National Infrastructure Pipeline (NIP), is set to boost the paint market. The NIP outlines plans to invest around INR 111 trillion in infrastructure by 2025. Public infrastructure projects such as highways, railways, and metro networks are increasing the demand for industrial and protective coatings. Additionally, the private sectors focus on residential and commercial real estate is propelling the use of decorative paints. The growth in construction activities is a major contributor to the rise in demand for paint, particularly in urban centres.
• Rising Demand from Automotive and Real Estate Sectors: The Indian automotive industry, which produced over 4 million vehicles in 2023, is a substantial consumer of industrial paints, especially for coatings in vehicles. Simultaneously, the real estate market has been experiencing robust growth with more than 20,000 new projects registered under RERA (Real Estate Regulatory Authority) by mid-2024, enhancing demand for decorative and protective paints. This synergy between automotive and real estate industries is a crucial factor for paint manufacturers targeting high-performance and aesthetic coatings. The expansion in these sectors is expected to sustain strong demand for paints across India.
• Increasing Preference for Decorative Paints: Consumer preferences have shifted towards decorative paints due to the rising trend of home renovation and aesthetic enhancement. In 2023, more than 75% of urban households indicated plans to undertake home renovation projects, a trend facilitated by increased disposable income and the desire for improved living spaces. This has led to a surge in demand for texture and premium quality decorative paints, particularly in urban areas. The decorative paint segment, accounting for the majority of paint consumption in India, is expected to benefit from this trend as consumers increasingly prioritize aesthetics and durability.

India Paint Market Challenges:

• High Raw Material Prices (Crude Oil Derivatives): The Indian paint industry is highly dependent on crude oil derivatives like solvents and resins, which account for around 50% of production costs. As of 2023, crude oil prices have remained volatile, hovering around USD 80 per barrel. This price instability directly impacts the cost of raw materials for paint manufacturers, pressuring profit margins. Additionally, the devaluation of the Indian rupee against the US dollar has further exacerbated the import costs for these raw materials, affecting small and medium-sized paint manufacturers disproportionately.
• Stringent Environmental Regulations (VOC Emissions): Stringent regulations regarding Volatile Organic Compounds (VOC) emissions, implemented by the Central Pollution Control Board (CPCB), require paint manufacturers to adhere to environmentally friendly practices. With India enforcing the VOC limit for paints at 150 grams per liter for architectural coatings, compliance has become costly, as companies need to invest in research and development of low-VOC or water-based alternatives. As of 2023, nearly 40% of the decorative paint market has shifted towards water-based products, but the high cost of compliance remains a challenge, particularly for small players.

India Paint Future Market Outlook

Over the next five years, the India paint market is expected to witness robust growth, driven by government infrastructure projects and increasing urbanization. Rising consumer demand for eco-friendly and sustainable paint products will also be a substantial factor, with more emphasis on water-based paints and specialty coatings that cater to specific needs such as heat resistance and antibacterial properties. Furthermore, technological advancements, including the integration of smart coatings and energy-efficient paints, are expected to revolutionize the market, offering new opportunities for manufacturers.

India Paint Market Opportunities:

• Technological Advancements (Nano-coatings, Eco-Friendly Paints): The advent of nano-coatings and eco-friendly paints presents substantial growth opportunities for the Indian paint industry. Nano-coatings, which offer superior durability, UV protection, and self-cleaning properties, are gaining traction in sectors like automotive and real estate. As of 2023, over 50% of premium automotive manufacturers in India have adopted nano-coating technologies for vehicle exteriors. Similarly, eco-friendly paints, which comply with strict VOC regulations, are becoming popular, with market penetration of eco-friendly coatings reaching 30% in the decorative segment by 2024.
• Rising Popularity of Smart Paints (Temperature Sensitive, Anti-Bacterial): Smart paints, such as temperature-sensitive and anti-bacterial coatings, are gaining popularity in the Indian market. Temperature-sensitive paints, which change colour based on ambient temperature, are increasingly used in commercial buildings for energy efficiency. Meanwhile, anti-bacterial paints, which inhibit microbial growth, have seen substantial adoption in hospitals, schools, and public buildings. In 2023, the demand for smart paints in India grew by over 20%, driven by increased consumer awareness of health and energy efficiency benefits.