Colour Meets Competition: Paint Market’s 2025 Turmoil Sets Stage for a 2026 Revolution

The Indian paints industry, valued at over ₹1 lakh crore, faced significant disruption in 2025 as aggressive pricing and new players like Birla Opus captured 10% market share, challenging Asian Paints' 52% lead. Urban demand weakened due to housing slowdowns, while raw material volatility squeezed margins by 100 basis points. Berger Paints and Kansai Nerolac held steady at 20% and 15% shares through innovation and distribution. Looking ahead, 2026 promises heightened competition with flat volume growth of 4-5%, offset by rural expansion, green paints, and premium products. Industry experts forecast a CAGR of 9-10%, fueled by urbanization and rising incomes, though supply chain risks persist.

Key Highlights

• Asian Paints market share dips to 52% amid Birla Opus' rapid 10% rise in 16 months.
• Berger and Kansai Nerolac focus on premium lines, maintaining 20% and 15% positions.
• 2025 challenges: Urban slowdown, price wars dent volumes; margins drop to 15%.
• 2026 outlook: 4-5% growth, rural push, sustainable coatings drive recovery.
• Market poised for ₹1.3 trillion by year-end, per industry projections.

Source: Economic Times, CRISIL Ratings, Mordor Intelligence