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The paint industry in India faced significant setbacks during the COVID-19 pandemic. Economic uncertainties, along with slowdowns in sectors like real estate, construction, and automotive, led to a sharp decline in demand for paints. Many construction projects were stalled or delayed, resulting in reduced demand for both decorative and industrial paints. However, as economic activities gradually resumed and infrastructure projects restarted, the demand for paints in construction and real estate began to recover.

Krishna Prasad, the owner of a local paint store, reflects on the shift in customer behavior before and after the pandemic: “I’ve been running my business in this locality for the past 25 years. I stock Berger Paints, Asian Paints, and Nerolac. I still remember the good old days before the pandemic when we had so many customers between Durga Puja and Diwali that we barely had time to talk to them. Nowadays, those high footfall days are a thing of the past. While the quality of paints has improved and prices have increased, the real issue lies in the financial strain on my customers, which has negatively impacted my business. The market is recovering, and we’re hopeful for a return to the good old days, but that hope hasn’t materialized yet.”

Paint Industry Applications and Segmentation

Paints and coatings are used across various industries such as architecture, automotive, wood, industrial, transportation, and packaging. They serve multiple purposes, including corrosion resistance, damage prevention, and decorative functions. The Indian paint industry is segmented by technology, resin type, and end-user industry.

Technology: The market is divided into water-borne coatings, solvent-borne coatings, powder coatings, and radiation-cured coatings.

Resin Type: The segmentation includes acrylic, alkyl, polyurethane, epoxy, polyester, and other types like vinyl and latex.

End-User Industry: This includes architectural, automotive, wood, protective coatings, general industrial, transportation, and packaging sectors.

Overview of the Indian Paint Industry

The demand for paints in India is being driven by the growing construction industry and the recovering automotive sector. The Indian paints and coatings market was valued at USD 9.56 billion in 2024 and is expected to reach USD 15.00 billion by 2029, growing at a CAGR of 9.38% during this period. However, the industry faces challenges such as fluctuations in raw material prices and stringent environmental regulations concerning volatile organic compounds (VOCs), which could hinder growth. Opportunities for market growth are emerging through the use of nanotechnology in paints and coatings, as well as the rising demand for eco-friendly paints. As the real estate sector picks up momentum, the demand for architectural coatings is expected to rise. Government initiatives like the Pradhan Mantri Awas Yojana, aimed at providing affordable housing, are likely to further boost this demand. Additionally, the expanding commercial sector is driving the need for architectural emulsion coatings. The architectural segment has been the backbone of the Indian paint and coatings industry.

In the automotive sector, the demand for acrylic coatings, both for interior and exterior applications, is growing. Water-based acrylic coatings, in particular, are gaining popularity due to environmental concerns. Major players in the market, including Asian Paints, Berger Paints India Limited, and Kansai Nerolac Paints Limited, are investing in technological advancements and expanding their production facilities to strengthen their market positions. Notable innovations, such as the collaboration between AkzoNobel and coatingAI, focus on reducing carbon footprints and enhancing paint application processes, underscoring the industry’s commitment to sustainability and efficiency.

Local Paint Stores and Market Outlook

Vishnu Shaw, another local paint store owner, says, “I only sell Asian Paints at my store. The paint market has definitely improved, and while my business isn’t thriving, it’s doing okay. It hasn’t recovered to pre-COVID-19 levels due to lower public spending, but the current situation isn’t as grim as it once was.”

Economic growth, urbanization, and rising purchasing power are three key drivers for the growth of the paint industry. India is seeing progress in all these areas, positioning the market for steady expansion. Overall, the Indian paints and coatings industry is expected to experience robust growth, driven by increased urbanization, rising disposable income, infrastructure development, and technological innovation.