Decorative Paints Market By Product Type (Water based paints, Solvent based paints), Formulation (Emulsion based paints, Distemper), Application (Interior Paints, Exterior Paints), Sales Channel (Online, Offline), Price (Premium, Medium, Economical) & Region – Forecast 2021 – 2031

Decorative Paints Market Snapshot

[292 Pages Report] Future Market Insights (FMI) has forecast the decorative paints market value to surpass US$ 57.8 Bn in 2021. Decorative paints industry is expected to be driven by growing construction of residential, commercial and institutional buildings across the world. The market is likely to witness a growth of 4.3% CAGR during the coming assessment period of 2021 and 2031.

FMI also forecasts the global decorative paints market to register year-on-year growth of 4.0% in 2021. Surging demand for interior decorations, renovating residential houses, coupled with urbanization, industrial growth, and expansion of infrastructure are some of the factors driving the decorative paints industry.

Considering this, FMI has projected the market valuation to reach US$ 87.8 Bn by 2031 end. The decorative paints market represented nearly 40% of sales in the paints and coatings industry in 2020.

2016-2020 Decorative Paints Market Outlook Compared to 2021-2031 Forecast

Demand for decorative paints grew at 1.8% CAGR between 2016 and 2020. Outbreak of Covid-19 pandemic has impacted the global market of decorative paints to a considerable extent.

This is due to restrictions in the movement and nationwide lockdowns across several regions, which suspended work across residential & commercial construction sector. This has in turn negatively impacted sales of exterior paints, subsequently giving headwinds to the paint demand in the year 2020.

In the current scenario, the overall domestic consumer space is witnessing a significant rise due to urbanization. Backed by this, the market has been projected to register sales growth at 4.3% CAGR over the forecast period, from 2021 to 2031. Expansion of construction sector will continue boosting decorative paints sales in India, China and GCC countries

Introduction of low VOC paints has been among the primary product innovations in the paints industry. Higher focus on sustainability will fuel demand for VOC paints in the decorative paints market. 

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How is Urbanization Impacting Decorative Paints Sales?

Rapid urbanization, improving standard of living, and 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 to the global decorative paints market growth.

Owners of commercial buildings such as office buildings, hotels, malls, and others spend a willingly on renovation of their building every three to five years. This also includes expenditure on exterior paints and wall paints in order to maintain 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.

Country-wise Insights

Why is Demand for Decorative Paints Rising in the U.S.?

In 2021, the U.S. decorative paints market is expected to grow by 4.1% year-on-year. 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.

Environmental friendly and low VOC paint products will dominate the market. Driven by implementation of stringent regulations and changing consumer preference, sales of low VOC paints are expected to pick up in the U.S. 

What will be the Demand Outlook of Decorative Paints in India?

In India, the growth potential is enormous looking at the need for housing and the increasing number of people investing in housing units. The decorative paints industry in India is expected to register a CAGR of 5.2% during the forecast period.

A considerable rise in the construction of high rise buildings in metropolitan cities coupled with urbanization is boosting the decorative paints sales in India. Increase in disposable income also is driving the growth of the market.

How is Construction Sector Contributing towards the Sales of Decorative Paints in China?

China is estimated to remain a key manufacturer and consumer of decorative paints, accounting for about 70% of the overall decorative paints consumption in East Asia in 2021.

Rapid development in the building and construction and infrastructure sectors is boosting sales of decorative paints in the country. As per the report, the residential construction segment is expected to register high demand for decorative paints in China.

Category-wise Insights

Why is Demand for Water Based Paints Increasing?

In terms of product type, water based paints are expected to dominate the market for decorative paints. As per FMI, the water based paints segment is projected to register year-on-year growth of 4.0% in 2021.

Increasing construction of residential and commercial buildings across the globe is expected to boost the demand for water based paints in the coming years. Implementation of regulations to curb VOC emissions from paints will drive sales of  water based paints.

Which Formulation of Decorative paints is Most Preferred?

Consumption of emulsion based decorative paints is expected to account for more than 80% of the total decorative paints market share in U.S. in 2021.

Emulsion paints are a stable suspension of oil phase in a liquid phase and are used to give a range of finishes, such as, the gloss sheen, statin, silk, and flat matt on substrates. As these are generally water based paints, share of the segment is also estimated to remain high during the coming forecast period. Among distempers, acrylic paints are expected to remain highly sought-after in the market.

What is the Key Application of Decorative Paints?

Revenue generated in the interior segment are estimated to grow by 4.1% year over year rate in 2021. Meanwhile, the demand for exterior segment is expected to increase at 3.8% CAGR between 2020 and 2021. The interior paints segment will continue accounting for more than 75% of the share among the listed applications through the forecast period in Europe.

Increase in the construction of residential buildings, commercial shops, shopping malls, offices, hotels and restaurants are boosting the demand for interior decorative paints. Furthermore, growing trend for interior decoration and renovation of interior parts all over the globe is bolstering the consumption rate of decorative paints in the interior segment.

Competitive Landscape

Key market participants are focusing on mergers and acquisitions strategies, coupled with product development by investing in research and development to boost their market presence. Some of them are emphasizin on increasing the production capacity to enhance their annual turnover. For instance:

• Eastman Chemical plans to invest for a significantly increase in its capacity to produce tertiary Decorative Paints (DIMLA) at its facility in Ghent, Belgium, by the end of 2021.
• Belle Chemical, an affiliate of Cornerstone Chemical acquires methyl decorative paints business from The Chemours Company in January 2020.

Scope of Report

Decorative paints Market by Category

By Product Type:

• Water based paints
• Solvent based paints

By Formulation:

• Emulsion based paints
• Distemper

By Application:

• Interior Paints
• Exterior Paints

By Sales Channel:

• Online
• Offline

By Price

• Premium
• Medium
• Economical

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa