Decorative Paints Market Value At Nearly USD 116.7 Bn By 2033

Introduction

The global Decorative Paints Market is anticipated to grow from USD 66.4 billion in 2023 to around USD 116.7 billion by 2033, demonstrating a (CAGR) of 5.8%. This growth can be attributed to several key factors that are influencing market dynamics.

The demand for decorative paints is primarily driven by the increasing interest in interior design and home renovations, which has spurred the use of paints that not only beautify but also offer functional benefits such as durability and ease of cleaning. Water-based paints, known for their low volatile organic compounds (VOCs), are becoming increasingly popular due to their minimal environmental impact and superior characteristics such as moisture resistance and ease of application.

The market’s expansion is further supported by technological advancements in paint formulations, which have led to the development of more sustainable and efficient products. These innovations include enhanced pigment technology for longer-lasting colors and the integration of nanotechnology to produce paints with improved properties like self-cleaning, anti-bacterial, and weather-resistant features.

Furthermore, rapid urbanization and an increase in construction activities globally are significant drivers for the decorative paints market. This trend is especially prominent in emerging economies, where there is a robust increase in housing and commercial projects. These factors combined are creating substantial market opportunities for decorative paints.

Key Takeaways

• The Global Decorative Paints Market size is expected to be worth around USD 116.7 Billion by 2033, from USD 66.4 Billion in 2023, growing at a CAGR of 5.8% during the forecast period from 2024 to 2033.
• Water-based paints dominated the Decorative Paints Market with a 56.1% share.
• Emulsion-based Paints dominated the Decorative Paints Market with a 35.5% share.
• Acrylic dominated the Decorative Paints Market with a 45.2% share by resin type.
• Offline channels dominate 73.4% of the Decorative Paints Market.
• The Residential segment dominated the Decorative Paints Market with a 37.3% share.
• Asia Pacific dominates the decorative paints market, holding 45.2% share, valued at $29.8 billion.

Decorative Paints Statistics

Decorative Paints Market Growth Insights

• The sector reported strong volume as well as value growth driven mostly by the decorative paints category in the fourth quarter of FY23.
• The decorative paints volume growth was higher by 14.5 percent supported by dealer expansion and new product launches.
• New product launches and dealer expansion by 20 percent in FY24 are likely to drive volume growth for Berger Paints in the coming future.
• The decorative business reported value and volume growth above 14 percent despite an inflationary environment.
• Asian Paints Q4 net sales rose 11.3 percent on-year as the domestic decorative coatings posted value/volume growth of 13 percent and 16 percent.
• Meanwhile, Kansai Nerolac Paints showed 13 percent revenue growth on the back of improved demand and new product launches across decorative & industrial paints.

Employment and Trends in Decorative Paints

• Gross margin for the company improved 93 bps YoY supported by lower raw material prices.
• For Kansai Nerolac Paints as well, the Gross margin improved 397 bps YoY supported by lower raw material prices and price hikes in industrial paints. As a result, the EBITDA margin improved to 9.7 percent.
• As of 2023, 242,261 people were employed in the house painting and decorating contractor industry. This is an average increase of 1.2% over five years between 2018 and 2023.
• Employment of painters and construction and maintenance workers is also projected to grow 4% from 2023 to 2033, with around 28,000 job openings, on average, to replace workers exiting the labor force to retire or transfer to different occupations.
• The average age of painters in the U.S. is about 42, and 57% of the workforce is aged 42 or older, highlighting a need for more young painters to enter the field as older workers approach retirement.

Survey Results on Professional Painter Preferences

• In a 2021 survey conducted by Sherwin-Williams on 1,000 members of a DIY advisory panel, 50% of respondents hired a professional painter because they needed help painting hard-to-reach areas.
• Meanwhile, only 41% of respondents felt it was a job for the professionals.
• In the same Sherwin-Williams survey, 49% of respondents said they learned about the painter they hired from friends and family; 17% answered they hired their painter from previous experience and 16% said their painter hire was from a referral from a contractor in a different trade.
• Moreover, the importance of the painter’s reputation, responsiveness, professionalism, availability, and the paint brand to be used measured high among the survey respondents, scoring a 4.2 on a 5-point scale.
• 58% of homeowners decide to proceed with their exterior painting projects during spring or early summer; 64% are started and completed from May through July.
• Asian paint being the market leader holds around 58% of the branded market share in decorative paints while Berger follows with 36%.

Emerging Trends

• Eco-Friendly Paints: There’s a growing preference for paints that minimize environmental impact. These include paints made from natural or recycled materials, and those with low or zero volatile organic compounds (VOCs) to improve indoor air quality and reduce environmental footprint.
• Smart Coatings: Advancements in smart coatings offer features like self-cleaning, anti-corrosion, and self-healing capabilities. These coatings are responsive to environmental changes like temperature and moisture, providing durable solutions across various industries including construction and automotive.
• Health-Focused Products: With an increased awareness of health and wellness, there’s a surge in demand for paints that contribute to healthier indoor environments. This includes the development of antimicrobial paints to combat mold and bacteria, and low-VOC options to reduce allergens and respiratory irritants.
• Advanced Functional Coatings: Functional coatings that offer fire resistance, waterproofing, UV protection, and thermal insulation are gaining traction. These not only enhance the durability and functionality of surfaces but also contribute to safety and energy efficiency.
• Digital Transformation and AI: The integration of AI and digital technologies in the production and marketing of paints allows for enhanced customer interaction, predictive analytics, and personalized color-matching tools, improving both process efficiency and customer satisfaction.

Use Cases

• Residential Interiors: Decorative paints are extensively used in residential spaces for their aesthetic value, helping homeowners personalize and beautify their living environments. These paints enhance interiors while offering durability and ease of maintenance.
• Commercial Spaces: In commercial buildings like offices, hotels, and retail spaces, decorative paints play a crucial role in establishing a professional and appealing environment. They are also selected for their durability and ability to withstand high traffic, ensuring long-lasting visual appeal.
• Eco-Friendly Applications: There is a rising demand for low-VOC and eco-friendly paints that contribute to healthier indoor air quality and are less harmful to the environment. These paints are favored in both residential and commercial projects focused on sustainability.
• Protective Coatings: Beyond aesthetics, decorative paints offer protective qualities such as resistance to moisture, UV rays, and wear. This makes them ideal for use in areas exposed to harsh conditions, including exterior walls and surfaces prone to heavy use.
• Innovative and Specialized Finishes: The market is seeing growth in specialized paints that provide additional functionalities like anti-microbial properties, which are particularly useful in healthcare settings, or magnetic and chalkboard paints for educational and creative spaces.

Major Challenges

• Volatile Raw Material Prices: The cost of key raw materials such as crude oil and titanium dioxide, which are essential for paint production, fluctuates significantly. This volatility makes it challenging for paint manufacturers to maintain stable pricing, affecting their profit margins and overall market pricing strategies.
• Stringent Environmental Regulations: Increasingly strict regulations on volatile organic compounds (VOCs) in paints are pushing manufacturers to invest in research and development of low-VOC and VOC-free products. While these products are better for the environment and public health, they are often more expensive to develop and produce, potentially limiting their market adoption due to higher prices.
• Supply Chain Disruptions: The paint industry, like many others, has been affected by global supply chain disruptions. These challenges have been compounded by geopolitical tensions, natural phenomena like La Niña affecting shipping routes, and ongoing impacts from the COVID-19 pandemic, all of which have led to delays and increased costs for transporting raw materials and finished products.
• Technological and Market Adaptation: As consumer preferences shift towards more sustainable and technologically advanced products, companies need to continuously adapt to stay competitive. This includes developing paints that offer enhanced performance such as better durability, as well as functional benefits like antimicrobial properties or improved environmental performance.
• Increased Competition and Market Saturation: The decorative paints market is highly competitive with numerous players and a mature market in many regions. This saturation forces companies to innovate continually while managing costs effectively to maintain or grow their market share.

Market Growth Opportunities

• Rising Demand in Emerging Economies: The ongoing urbanization and industrial growth in Asia-Pacific regions are significantly driving the demand for decorative paints. This surge is attributed to the increased construction activities and rising disposable incomes in these regions, presenting lucrative opportunities for market expansion.
• Technological Advancements: Innovations such as the development of eco-friendly and low-VOC paints are reshaping the market. These products cater to the growing consumer demand for sustainable and environmentally friendly solutions, offering manufacturers a competitive edge and a chance to capture a broader customer base.
• Expanding Applications: The use of decorative paints is expanding beyond traditional boundaries into new application areas such as automotive and industrial sectors. This diversification is driven by the paints’ aesthetic and protective qualities, broadening the market scope and opportunities for growth.
• DIY Market Growth: There is an increasing trend towards do-it-yourself (DIY) projects, fueled by digital platforms and consumer interest in home improvements. Paint manufacturers can capitalize on this trend by offering user-friendly products and solutions that cater to the DIY community.
• Enhanced Product Features: Ongoing research and development aimed at improving the performance characteristics of paints, such as durability, weather resistance, and aesthetic appeal, continues to open new avenues for market growth. These enhanced features meet the evolving needs and preferences of consumers and industries alike.

Key Players Analysis

• Acro Paints Limited a prominent player in India’s decorative paints market, has seen consistent growth. In 2023, the company reported a 12% increase in net sales, primarily driven by new product innovations and expanded dealer networks. Its focus on eco-friendly paints has gained popularity, contributing to a market share of 3.5% in India. Acro’s year-on-year growth in 2024 is expected to be 15%.
• Akzo Nobel, a global leader in decorative paints, saw a revenue increase of 9% in 2023, with a focus on sustainability and digitalization. The company’s flagship brand, Dulux, maintained a strong market presence, contributing to its 2023 revenue of EUR 10.6 billion. Akzo Nobel’s performance is expected to remain robust in 2024, with a projected 6% growth in decorative coatings.
• Asian Paints, India’s largest decorative paint company, recorded a 16% growth in Q4 FY23 in volume terms. Its market share in the Indian decorative paints sector stands at 58%, generating a turnover of INR 26,200 crores in 2023. In 2024, the company is aiming for a 10% revenue growth, supported by new product launches and market expansion.
• BASF, a German chemical company, reported a 5% increase in its decorative paints segment in 2023, driven by eco-friendly innovations and strong demand in the European market. Its coatings division achieved sales of EUR 5.8 billion in 2023. BASF is focused on reducing environmental impact and expects moderate growth of 4% in 2024.
• Berger Paints, a key player in India’s decorative paints market, reported a 14% increase in net sales for FY23, reaching INR 8,700 crores. The company’s volume growth was 14.5%, fueled by strategic dealer expansion and new product introductions. Berger’s market share in India is 36%. The company expects a 12% revenue increase in 2024.
• Ecopaints, an emerging player in the Indian market, achieved a 10% revenue growth in 2023, driven by rising consumer preference for sustainable and low-VOC paints. Ecopaints’ market share in India is small, but it has carved out a niche in eco-friendly products. The company expects a 15% growth in 2024 as demand for green paints rises.
• Esdee Paints, a well-established Indian brand, reported a 7% revenue increase in 2023. The company’s portfolio includes a wide range of decorative paints, and it saw a strong uptake in the industrial coatings market as well. Esdee Paints is set to expand its retail network and expects a 10% growth in 2024.
• IndigoPaints, India’s fourth-largest decorative paints company, reported a 17% increase in revenue for FY23, reaching INR 2,200 crores. Its focus on differentiated product offerings, including premium and eco-friendly options, helped the company secure a market share of 8% in India. Indigo expects continued growth of around 13% in 2024.
• Jotun, a Norwegian company, reported a 6% growth in its decorative paints division in 2023, with revenues reaching NOK 25.5 billion. Jotun’s presence in Asia and Europe is significant, and its focus on sustainable coatings has contributed to this growth. The company expects moderate growth in 2024, projecting a 5% increase in decorative paint sales.
• KANSAI Paints, a major Japanese player in the decorative paints sector, achieved a 10% growth in 2023, with revenue from its decorative coatings reaching JPY 360 billion. The company is focusing on expanding its presence in emerging markets. In 2024, KANSAI expects continued growth, projecting a 7% increase in decorative paint sales.
• Nippon Paint, the leading paint company in Asia, saw a 12% increase in sales in 2023, generating a total of JPY 550 billion in revenue from its decorative coatings segment. The company holds a significant market share in China and Southeast Asia. It projects a 9% revenue increase in 2024, supported by new product innovations.
• PPG Industries, a U.S.-based multinational, reported a 5% increase in decorative coatings sales in 2023, with revenues of USD 19.4 billion. The company’s brands like Pittsburgh and Glidden contributed to strong growth in North America and Europe. PPG expects continued expansion, forecasting a 6% growth in its decorative paints segment in 2024.
• RPM International, the parent company of Rust-Oleum and Zinsser, reported a 7% increase in decorative paint sales in 2023, reaching USD 7.2 billion in revenue. The company’s strong performance is attributed to its diverse product portfolio and focus on home improvement. RPM expects a similar growth trajectory in 2024, targeting a 6% revenue increase.
• Shalimar Paints, an established Indian brand, achieved a 9% revenue growth in FY23, with sales reaching INR 1,100 crores. The company has focused on expanding its product range to include environmentally friendly options. Shalimar expects a growth rate of 8% in 2024, aided by increasing demand in both urban and rural markets.
• Sheenlac Paints, an Indian manufacturer, saw a 6% increase in sales in 2023, with total revenue reaching INR 500 crores. The company’s growth is attributed to its product innovation and strong distribution network. Sheenlac is targeting a 10% growth in 2024, with plans to expand its market presence in new regions.
• Sherwin-Williams, a U.S.-based global leader in decorative paints, reported a 10% increase in revenue in 2023, achieving USD 24.8 billion in total sales. The company’s paint brands, including Sherwin-Williams and Valspar, continue to dominate in North America. Sherwin-Williams expects a steady 6% growth in 2024, driven by demand for premium coatings.
• Valspar, a subsidiary of Sherwin-Williams, posted a 9% increase in sales in 2023, generating USD 5.6 billion in revenue. The brand is highly popular in North America and continues to expand in international markets. Valspar expects continued growth, forecasting a 7% increase in decorative paint sales in 2024, driven by product innovation and regional expansion.

Conclusion

The Decorative Paints Market is poised for significant growth and transformation, driven by technological advancements, increasing environmental awareness, and the rising popularity of DIY projects. As urbanization continues to expand in emerging economies, the demand for both aesthetic and functional coatings is expected to surge, providing ample opportunities for market players. Innovations in eco-friendly and low-VOC products are not only aligning with global sustainability trends but are also enhancing indoor air quality, appealing to health-conscious consumers.

Additionally, the expansion of applications beyond traditional residential and commercial spaces into industrial and specialized sectors promises further market diversification. Moving forward, companies that focus on innovative, environmentally friendly solutions and that adapt to changing consumer preferences will likely lead the market, continuing to drive the decorative paints industry toward a more sustainable and technologically advanced future.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF