Release Date: 29-Jul-2013
The Indian paint industry has evolved since 1920 when it came into being and it has grown from a predominant decorative paints market with seasonal fluctuations to a more diversified market. In recent times, between 2005 and 2012, the organized industry grew at a healthy CAGR of 15% on the back of growth in the construction, housing, automobiles and consumer durables sector. However the global crisis during mid 2008 was a blip in the growth curve and by mid 2009, the growth prospects in this sector brightened considerably.
The growth in the market is expected to come on account of the emerging affluent middle class in India that have the capability and the willingness to spend and growing young population that are bringing up nuclear families. The per capita paint consumption now is about 2.5 kg and this is expected to increase to over 4.5 kg by 2018. This makes India one of the lowest per capita paint consumption as against 15-25kg/annum seen in a few of the developed countries, or of a few countries like US, Japan etc where per capita consumption is more than 25 kg/annum. This low per capita consumption combined with rural penetration of only 10% indicates latent potential in the market and has prompted many domestic and global manufacturers to view this market with interest and step up their production capacity.
Going forward, the paint market is expected to reach US$ 12.3 Billion by 2018 with the decorative paints segment garnering a higher share of the market compared to industrial paints. The market for paints in India has grown well despite the overall slowdown when 2012 was a challenging year for the industry as a whole due to dull demand across key sectors and rising inflation.
For more information visit: “India Paint Industry Opportunity Analysis 2018”