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The decorative paints market value is to surpass US$60.27bn in 2022, according to research by Future Market Insights (FMI). The decorative paints industry is expected to be driven by the growing construction of residential, commercial and institutional buildings across the world. The market is likely to witness a 5.4% CAGR during the coming assessment period of 2023 and 2033.
Surging demand for interior decorations and renovating residential houses, coupled with urbanisation, industrial growth and expansion of infrastructure are some of the factors driving the decorative paints industry. FMI has projected the market valuation to reach US$108bn by 2033 end. The decorative paints market represented nearly 45% of sales in the paints and coatings industry in 2022.
Decorative paints will become more popular if they have unique finishes and textures. Metallic finishes, textured surfaces and even 3D-printed patterns will become possible. Consumers will be able to create visually appealing and personalised spaces thanks to these innovations.
Antimicrobial paints are increasingly in demand due to increased attention being paid to health and hygiene. Painting surfaces can inhibit bacterial growth, mould and other micro-organisms, contributing to a healthier indoor environment. As a result of anti-allergenic paints, pollutant and allergen levels in the air are helped to decrease, thus improving the quality of the air.
The use of decorative paint in a smart home can be integrated with electrical and heating control, as well as the display of digital content on painted surfaces. Painting spaces with this integration will improve their aesthetics and functionality, improving their immersive quality.
Artists or designers collaborating with paint manufacturers will drive innovation in decorative paints. A wide range of colour palettes, patterns and artistic effects can be created, allowing consumers to express themselves individually.
2018 to 2022 decorative paints market growth compared to 2023 to 2033 forecast
Demand for decorative paints grew at 5% CAGR between 2018 and 2022. In the current scenario, the overall domestic consumer space is witnessing a significant rise due to urbanization.
The development of low volatile organic compound (VOC) paints will become more important as environmental concerns rise. In the future, eco-friendly decorative paints will be developed using sustainable materials and manufacturing processes.
As technology is integrated into paints, smart paints will emerge. Paints with self-cleaning properties, self-healing capabilities, or colour-changing capabilities will be available in the future. For example, dirt-repelling paints can prevent stains and scratch-healing paints repair minor damage.
A significant role will be played by digitalisation in decorative paints in the future. Using virtual reality or augmented reality tools, consumers can visualise and customise their paint choices. It enhances the overall customer experience by allowing them to preview different colour schemes and finishes before they make a decision.
Backed by this, the market has been projected to register sales growth at a 5.4% CAGR over the forecast period, from 2023 to 2033. Expansion of construction sector will continue boosting decorative paint sales in India, China and GCC countries. Introduction of low VOC paints has been among the primary product innovations in the paints industry. A higher focus on sustainability will fuel demand for VOC paints in the decorative paints market.
How is urbanisation impacting decorative paints sales?
Rapid urbanisation, improving the standard of living and the growing interest of customers towards improving the aesthetic appeal of their homes and residential buildings have led to increasing demand of decorative paints.
Powered with high disposable income, consumers’ demand preference has shifted to paints with highly resilient characteristics along with a modern taste of estheticism. This change in demand pattern is expected to work as a catalyst for the global decorative paints market growth.
Owners of commercial buildings, such as office buildings, hotels, malls and others, spend willingly on the renovation of their buildings every three to five years. This also includes expenditure on exterior paints and wall paints in order to maintain the visual aesthetics of their facilities.
Growth in the number of commercial buildings and skyrocketing construction of affordable housing projects are further anticipated to boost the demand for wall paints and exterior paints in the coming years.
As per FMI, the demand for decorative paints will be especially high in the Middle East and Africa, Eastern Europe, and Asia Pacific. The paint industry will continue to benefit from nanotechnology. The incorporation of nanoparticles into paints can improve the paint’s durability, UV resistance and thermal insulation properties. A longer-lasting and higher-performing decorative paint will be the result of these advancements.
Why is demand for decorative paints rising in the USA?
Green paints will likely grow demand for decorative paints
According to FMI, the United States decorative paints market is expected to grow at a 4.8% CAGR. Revenue generated in the market will be pushed by a high rebound in construction projects. Moreover, growth in the construction of residential and commercial buildings will continue pushing demand for decorative paints.
Environmentally-friendly and low-VOC paint products will dominate the market. Driven by the implementation of stringent regulations and changing consumer preferences, sales of low-VOC paints are expected to pick up in the United States.
With the increasing focus on environmental sustainability and more stringent government regulations on harmful substances, the demand for water-based paints is expected to grow. These factors have encouraged manufacturers to produce water-based decorative paints. The market for decorative paints is expected to grow due to the rise in water-based paint demand.
Start-ups in the decorative paints market
Changing market conditions and technological advancements create exciting new trends for businesses. Startup ecosystems across the world are gaining traction with the decorative paints industry. Some key startups in the decorative paints market include:
- Paints and Coatings, an India-based firm, offers products such as paints and coatings for walls, emulsions, enamels, primers, etc. The company offers an extensive selection of decorative paints and wood coatings to its customers.
- Rathi Decor, is an online service for booking painting services. Provides a wide range of services, including exterior painting, polishing, interior painting, texturing, coatings, industrial painting, stroke painting, waterproofing and many other services. By filling out their details, users can request quotes based on their requirements. Depending on the budget, users can then book and avail the service. As a painting service provider, it aims to provide an end-to-end solution.
- Circouleur, provides paint recycling solutions. The company specialises in the production and transformation of unused paints. This company has a wide range of paints that can be used for a variety of interior decoration projects. As a result, its paint emits fewer volatile organic compounds and ensures a better indoor environment.
Key market participants are focusing on merger and acquisition strategies, coupled with product development by investing in research and development to boost their market presence. Some of them are focusing on increasing the production capacity to enhance their annual turnover. For instance:
- In May 2023, Kamdhenu Paints introduced the WEATHER CLASSIC ADVANCE paint to enhance its exterior emulsion portfolio. Compared to previous emulsions, the new one is less likely to pick up dirt and has a high SRI value. The warranty is also five years long. Weather Classic Advance is a 100% acrylic, elastomeric paint that prevents dirt, dust and extreme weather conditions from accumulating on the exterior walls. It also comes with a soft sheen. Anti-dirt pick-up properties and water resistance make the product ideal for outdoor use. In areas with moderate humidity or dry weather, weather classic advance is ideal.
- In June 2023, PPG opened a Color Creation Lab in China in partnership with vehicle maker Chery Automobile. It will be staffed by PPG colour stylists and Chery designers who will work together to develop colour recommendations tailored to specific vehicle designs. Final materials will be used to produce the vehicles.
These insights are based on a report on Decorative Paints Market by Future Market Insights