The Global Decorative Coatings Market Projected to Grow at a CAGR of 4.7% and Generate a Revenue of $115,170.10 million by 2032

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The global decorative coatings market is predicted to be valued at $115,170.10 million by 2032, surging from $73,216.00 million in 2022, at a noteworthy CAGR of 4.7%.

Impact Analysis of COVID-19 on the Decorative Coatings Market

The COVID-19 pandemic had a significant impact on the decorative coatings industry. The pandemic disrupted global supply chains, leading to widespread operational challenges in decorative coatings manufacturing. Lockdowns and restrictions implemented to contain the virus compelled many industries worldwide to temporarily shut down or curtail operations, resulting in a notable decline in demand for decorative coatings. Sectors like automotive manufacturing, construction, and others heavily reliant on paints, and coatings, experienced a substantial downturn. However, with economies gradually recovering in the post-pandemic period, there is a resurgence in demand for decorative coating, indicating a positive trajectory for the decorative coatings market.

Global Decorative Coatings Market Analysis

The long-term growth trajectory of the decorative coating market is highlighted by several key macro-economic and demographic factors. The steady increase in gross household income, along with a rise in urbanization and the growing trend of nuclear families, is the primary factor for the growth of decorative coating market. . Notably, the declining propensity to save reflects consumers' increased willingness to invest in non-essential items, including decorative coatings. India's urbanization journey, witnessing a rise from 25.6% in 1990 to 34.5% in 2019, further propels the demand for paints. As urbanization continues to progress, supported by real estate demand and infrastructure development, the decorative coatings industry is expected to witness significant growth. The projection that around 40% of India's population will reside in urban areas by 2030, reinforces the positive outlook for the sector. In addition, the increasing number of households due to the nuclearization of families remains a driving force for housing demand, providing a promising medium to long-term outlook for the decorative coatings market despite short-term challenges in the real estate sector.

Despite a favorable forecast for the decorative coatings business, one important impediment is the volatility of raw material prices. The business is strongly reliant on different inputs, including pigments, binders, and solvents, which are prone to price fluctuation due to global market dynamics. Sudden changes in the costs of these crucial components can disrupt the supply chain and pressure profit margins for manufacturers, providing a severe challenge to the decorative coating sector's stability and profitability.

Bio-based coatings represent a transformative trend in the decorative coatings market, offering a sustainable and eco-friendly alternative to traditional petrochemical-derived coatings. Derived from renewable biological resources like plants, animals, and microorganisms, these coatings prioritize environmental responsibility without compromising functionality. By providing corrosion resistance, water repellency, UV protection, and aesthetic appeal, bio-based coatings cater to diverse consumer needs. The increasing demand for eco-conscious products is encouraging manufacturers to adopt plant-based ingredients in response to increase in environmental awareness. The versatility of bio-based materials, such as natural oils, resins, starches, cellulose, and proteins, enables the creation of coatings suitable for various applications, including automotive, construction, packaging, furniture, and textiles.

Global Decorative Coatings Market, Segmentation

The decorative coatings market is segmented on the basis of technology, type, application, and region.

Technology:

The type segment is classified into water-based and solvent-based. Among these, the water-based sub-segment is anticipated to be the fastest growing during the forecast period. The dominance of the water-based sub-segment in the decorative coating market is driven by the various advantages it brings to the forefront. An inherent commitment toward health and safety is a hallmark of water-based paints, as they generate fewer fumes compared to their oil-based counterparts. This characteristic not only ensures a safer working environment for painters but also contributes to environmental well-being. The ease of clean-up is another significant factor driving the sub-segment growth, as water-based paints can be effortlessly cleaned with soap and water, eliminating the need for harsh solvents. These coatings redefine efficiency in project management, boasting a shorter drying time that facilitates quicker project completion and minimizes downtime.

Application:

The application segment is further classified into interior and exterior. Among these, the interior sub-segment is predicted to have the fastest growth during the forecast period. The dominance of the interior sub-segment within the decorative coating market is driven by several benefits that decorative paintings provide for indoor spaces. As the go-to choice for surfaces like walls, furniture, and floors, decorative paints play a pivotal role in creating visually appealing and atmospherically pleasing interiors. Different formulations cater to specific needs, with some coatings offering waterproof properties ideal for humid environments like bathrooms. The ability of these coatings to withstand the rigors of daily life while adding an artistic touch makes them an integral part of interior design. This segment expansion is further boosted by the continuous innovation in decorative painting formulations, meeting the evolving demands of consumers and interior designers.

Type:

The type segment is further classified into emulsion, enamel, primer, and others. Among these, the emulsion sub-segment is predicted to have the fastest growth during the forecast period. Decorative paint emulsion comes with several benefits compared to traditional paints. It gives a shinier surface and has a longer lifespan than oil-based alternatives. Moreover, it is water-resistant and adheres well to wooden surfaces, preventing peeling. Its ease of cleaning and maintenance makes it well-suited for household use. Emulsion-based decorative paints are versatile, applicable to various surfaces, and offer a choice of gloss or matte finishes. Leading manufacturers are investing significantly in research and development to improve product properties like light absorption, opacity, and durability. These improvements are expected to have a positive impact on the market.

Region:

The Asia-Pacific region is projected to have a dominant market share during the forecast period. Asia-Pacific is experiencing a strong increase in demand for decorative coatings, driven by the region's rapid industrial growth. As the region's economy grows rapidly, the increase in infrastructure and construction activities plays a critical role in increasing demand for decorative coatings. The construction boom, which is characterized by an increase in residential and commercial developments, presents a substantial opportunity for the decorative coating sector in Asia-Pacific. These coatings are critical to improving the aesthetic appeal and protective characteristics of structures, illustrating the symbiotic relationship between the Asia-Pacific’s booming industrial landscape and the growing demand for visually appealing and durable finishes.

Key Players in the Global Decorative Coatings Market

Some of the leading decorative coatings market players are PPG, The Sherwin-Williams Company, Akzo Nobel N.V., Nippon Paint Holdings Co., Ltd., BASF SE, Asian Paints, Kansai Paint Co., Ltd., Jotun, RPM International Inc., and Axalta Coating Systems.