BRIGHT and COLOURFUL!

The market for decorative paints is evolving faster with new innovations focusing on sustainability and environment-friendly features. Construction Times explores the new innovations and the way forward for decorative paints.

India’s decorative paints market was valued at $7280.48 million in 2023 and is expected to project robust growth during the period through 2028 at a CAGR of 12.14%, according to market research reports. The revival in real estate market has pushed the demand for decorative paints in residential and commercial real estate segments. Also, with urbanisation is on the rise, more opportunities will be knocking on the doors for decorative paints in future. The market's growth is fuelled by urbanization, rising incomes, and government initiatives in housing sector, with the increasing consumer preference for sustainable paint options expected to drive further expansion.

What is trending?

India's decorative paints market is experiencing rapid growth, driven by increasing consumer spending and a desire for premium products. As people's purchasing power rises, the demand for high-quality paints with luxurious finishes is also on the rise. Currently, emulsion paints hold a 31% market share, valued for durability and aesthetics, while enamel paints are sought after for their tough finish on metal and wood. Distempers remain popular for affordable interior use, especially in rural areas. Exterior trends focus on durability and weather protection, with exterior emulsions and textured finishes on the rise.

In terms of exterior and interior applications, there is a noticeable trend towards dual-use emulsions. According to Saurabh Agarwal, Managing Director, Kamdhenu Paints, consumers are often confused about the differences between exterior and interior paints and which to use in specific areas. “To address this, many manufacturers, including Kamdhenu, have introduced dual emulsions that can be used both indoors and outdoors. The Kamodual emulsion range has been particularly successful in meeting this demand,” says Agarwal. “To further enhance customer accessibility and provide a convenient shopping experience, we have recently launched our e-Nexa retail outlet, specifically designed to cater to the needs of first-time home buyers who want to personalize their dream homes,” he adds.

According to Kaushal Mehta, Managing Director, Walplast Products Pvt Ltd, the Indian decorative paints market is experiencing a significant shift towards eco-friendly options, driven by the demand for low-VOC paints, water-based paints are gaining traction for their environmental benefits and low Volatile Organic Content (VOC).

Demand drivers

The growing real estate market is the major demand driver for the growth of decorative paints market. According to Agarwal, rapid urbanization, as more people migrate to cities, leads to increased construction activity and a corresponding rise in demand for decorative paints. Festive seasons also play a significant role, as Indians often choose to renovate or redecorate their homes during these times. Government initiatives like ‘Housing for All’ and PM Awas Yojana further contribute to the market's growth by stimulating construction and increasing the demand for affordable housing. Additionally, the rising disposable income of the average Indian enables people to invest more in-home improvement and décor, including decorative paints.

Mehta also seconds the same while adding, “There is a rising awareness of aesthetics, along with a growing preference for eco-friendly products. Technological innovations that improve paint quality, durability, and application processes, along with government initiatives promoting affordable housing, are further contributing to this growth. Shorter repainting cycles, spurred by festivals, weddings, and general lifestyle upgrades, are boosting the decorative paint segment.”

Increasing commercial construction, including new commercial and retail spaces, also contributes to the demand for decorative paints, especially for interior finishes. 

Product innovations

Innovations in the decorative paints market are happening related to functionality and aesthetics, increasingly focused on sustainability and environmental friendliness. As consumers are becoming aware, there is a growing demand for eco-friendly emulsions. “Kamdhenu is very well responding to this trend by offering a wide range of eco-friendly paint products that are gaining popularity among both consumers and painters. These innovations not only contribute to a healthier living environment but also align with the increasing emphasis on sustainable practices in various industries,” says Agarwal. 

Mehta adds, “Innovations such as anti-bacterial paint, aerospace coatings, paints with natural ingredients, self-healing paint, VOC-free compounds, glow-in-the-dark paints, advanced paint equipment, nano coatings, 3D colour visualization, and fast-drying paints are reshaping the industry landscape with their unique features and benefits.”

Market outlook

According to Mehta, the market is projected to hit Rs 159,000 crore by 2032, growing at 9.5% CAGR, supported by urbanization, income growth, and housing initiatives. Trends include water-based paints' popularity for eco-friendliness, emulsion paints' dominance with 31% market share, increased demand for durable exterior emulsions, and textured finishes for exterior surfaces.

With the government’s continued focus on urban infrastructure and smart cities development coupled with advancements in real estate developments, there will be a growing need for decorative paints in the coming years. According to Agarwal, demand of decorative paints and construction chemicals will continue to rise amid growing economy, rapid urbanisation and government’s push towards infrastructural development. “We will look forward towards enhancing our product offerings, adding more manufacturing units and engaging more dealers, distributors and painters in our network,” he adds.

Looking at the way the real estate development happening in the country and more and more urbanisation taking place, the decorative paints are expected to see a colourful bright future!