NEW DELHI, India - Gyan Research and Analytics Pvt. Ltd. has released a new study of the coatings industry in India that indicates there are many opportunities for growth, due in part to India’s lower per-capita coatings consumption compared to the rest of Asia. The study reports that India is emerging as one of the major participants in the global paints and coatings industry, with a market value of $4.79 billion in 2012 and growing at a CAGR of 13% for the last five years.
The size of the industry in volume terms is 3.1 million metric tons, with decorative coatings at 2.4 million metric tons and industrial coatings at 0.7 million metric tons.
The current per-capita consumption is 2.57 kg, which is far lower than that of global and Asian per-capita consumption of 20 kg and 5 kg, respectively. These numbers present excellent opportunities for growth in the country, with the industry expected to continue with double-digit growth from 2013 to 2017.
The paint industry is expected to grow at a CAGR of 14% to reach over $9 billion by 2017 with per-capita paint consumption expected to increase to over 4 kg.
In India, the decorative coatings market accounts for about 71% while industrial coatings account for the remaining 29%. Both the segments have been showing robust growth in the last few years. The demand in tier II and tier III cities is also growing and, in fact, is growing at a faster rate than the tier I cities.
There is a shift towards the use of organic pigments in premium paints with heavy metal pigments being phased out. Companies that adapt to this trend could see growth in the coatings market in India. Low household consumption of paints in India, compared to other developing regions, offers high growth potential of the market.
For additional information about the report, titled Sectoral Capsule – Indian Paint Industry – New Colours of Success, visit http://www.marketresearch.com/Gyan-Research-and-Analytics-Pvt-Ltd-v3932/Sectoral-Capsule-Indian-Paint-Colours-8013826/.