Paints & Coatings a major application of the India Solvents Market
The paints & coatings market in India consists of decorative coatings i.e. paints & coatings used in both the domestic and commercial sector such as automotive and marine industry, amongst many others. Paints & coatings are one of the main application areas in the India solvents market. A large chunk of the paints & coatings consumption is mainly because of solvent based variants as the majority of the industrial paints & coatings used in the India solvents market are solvent-based. The consumption of paints & coatings in decorative and industrial applications is anticipated to record robust growth during the forecast period. The growth is primarily driven by a rising disposable income and consumer spending as well as steady industrial growth, all of which directly benefit the India solvents market. The consumption of solvents for paints & coatings in the India solvents market was pegged at just over 665,000 tons in 2016.
Bio-based alternatives consumption a challenge to the India Solvents Market
Countries in the strategically important APAC region such as China and India are large consumers of petroleum feedstock derived solvents. The continued growth of industries combined with comparatively less stringent regulations than developed nations has led to a robust growth of the APAC solvents market in the last few years. However, increasing health hazard concerns along with those of volatile organic compound emissions that are linked to the use of some conventional solvents have resulted in a steady rise in demand for eco-friendly and bio-based alternative solvents. The bio-based solvent consumption in India is expected to show a single digit CAGR of 6% during the forecast period.
The potential for alternative solutions is larger though, particularly in cleaning applications. For e.g. – Cold cleaners, industrial degreasers, and automotive cleaners that use fatty acid monoesters derived from plant oil should witness faster growth as opposed to conventional products such as white spirits. Bio-solvents are environmentally friendly alternatives to traditional solvents and they clean without any sort of hazardous after-effects that are typically linked to the latter. Bio-solvents are biodegradable and non-toxic and can be reused through simple filtering or distillation methods. Bio-solvents are less volatile and have higher solvency than petroleum-derived solvents. This poses a large challenge for the India Solvents Market that key stakeholders will need to overcome.
Greater adoption of water-based paints & coatings and powder coatings
The conventional paints & coatings consumed in the country are usually solvent based. In addition, a substantial share of overall consumption of decorative paints & coatings is taken up by solvent-based variants. Recently, it has been seen that the industry is slowly shifting towards alternatives such as powder coatings and water-based paints & coatings. These substitutes substantially decrease volatile organic compound emissions and are effective, eco-friendly, and efficacious. Even government regulations have led to greater adoption of water-based solvents, reducing the size and scope of the India Solvents Market. Furthermore, volatile crude oil prices have a direct impact on the price of petroleum-based solvents. As solvents are a vital component in paints & coatings formulations, any price fluctuations could hamper the growth of the India Solvents Market in the study period.
Printing Ink and Paints & Coatings application segments dominate the India Solvents Market
Paints & Coatings and Printing ink are predicted to account for a market value share of almost 36% and 13% respectively by the end of 2024. While the Printing Ink segment was valued at nearly INR 13.3 Bn in 2016, it is forecast to grow to almost INR 20 Bn by 2024, registering a CAGR of 5.1%. The Paints & Coatings segment was valued at INR 34 Bn in 2016 and should rise to about INR 55.4 Bn by end 2024. Paints & Coatings will record the highest CAGR of 6.3% for the eight-year period, and key stakeholders are advised to take notice.