India Aerosol Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India Aerosol Market Size

India Aerosol Market Trend & Driver

Rising Demand for Eco-Friendly Products in the Foremost Trend

• Increasing demand for eco-friendly products is a prominent trend observed in the market.
• Companies are focusing on introducing eco-friendly products with a focus on reducing environmental impact, which may include advancement in packaging materials, actuators, propellants, and formulation to fulfill stricter regulations and consumer preference for greener alternatives.
• For instance, in January 2023, Aptar Pharma, part of AptarGroup Inc., announced the introduction of APF Futurity, its first metal-free, nasal spray pump. It is designed for recyclability.

Growing Demand for Aerosols in Automobile Factories and Aftermarket

• The growing demand for aerosols in automobile factories and the aftermarket in the country is one of the major drivers for the Indian aerosol market.
• The aftermarket includes various applications of aerosols, such as puncture repairing, friction and wear reduction in vehicle parts, using lubricating oils and greases, and vehicle repainting and refinishing.
• The demand for aerosols for these applications is increasing continuously in the country with the growing production and sales of passenger cars, commercial vehicles, three-wheelers, two-wheelers, and quadracycles.
• As per the data published by the Society of Indian Automobile Manufacturers (SIAM) for the financial year 2022–23, the Indian automotive industry produced 2,59,31,867 vehicles and the sales of passenger vehicles increased from 30,69,523 to 38,90,114 units in the year 2022-23.
• India has a strong position in the global automotive industry. As per the report of India Brand Equity Foundation (IBEF) in 2023, India is the largest manufacturer of tractors, the second-largest bus producer, and the third-largest heavy truck producer in the world.
• Moreover, in November 2023, the sales of passenger vehicles have been the highest, with a growth of around 3.7%, as compared to the year 2022.
• Such high domestic sales have been providing lucrative opportunities to automobile aftermarket operators in the country. In order to maintain production facilities and ensure the working state of machinery, vehicle production, and aftermarket companies require a huge volume of aerosol products.
• Thus, the high adoption of aerosol products in both automobile production and aftersales operations in the country is further expected to boost the market during the forecast period.

Challenges

• Aerosol cans contain propellants, such as propane, butane, dimethyl ether, and isobutane, to force the substance out of the can by making it expand rapidly when the valve is opened.
• Similarly, refrigerants, which are also aerosols, are flammable in nature and composed of hydrofluorocarbons (HFCs) and volatile organic compounds (VOCs), which have a high GWP and can damage nearby premises.
• As mentioned in the Unlocking National Energy Efficiency (UNNATEE) Potential – Strategy Plan towards Developing an Energy Efficient Nation (2017–2031) of the Indian Ministry of Power, India, along with Pakistan, Iran, and Saudi Arabia, belongs to the 3rd group of countries that have to stop the rise in HFC levels by 2028 and reduce them to about 15% by 2047.
• In order to control the usage of aerosol cans, the Indian government has formed several regulations in the last few years.
• According to a press statement released by the Ministry of Environment, Forest and Climate Change, industries that perform spray painting have to take prior permission from the government.
• In addition, if any individual or organization plans to produce, import, export, or sell aerosol cans, it must obtain government permission. Thus, these regulations may somewhat restrict the growth of the market in the coming years.

India Aerosol Industry Outlook

Distribution Channel Insight

• In terms of value, supermarkets/hypermarkets are expected to be the fastest-growing category during the forecast period (2024–2030), based on distribution channel.
• This can be mainly due to the swift modernization in the retail sector, which is driving the setting up of supermarkets and hypermarkets all over India, especially in metropolitan cities.
• In addition, the rising awareness regarding hygiene, due to COVID-19, has pushed the sales of cleaning & maintenance aerosols via supermarkets/hypermarkets, owing to the availability of assorted goods at reasonable prices here.

Distribution channels covered in the report include:

• Department/Convenience Stores (Largest Category)
• Supermarkets/Hypermarkets (Fastest-Growing Category)
• Online

Application Insight

• Based on application, the personal care category held the largest share in the Indian aerosol market in 2023, and further, it is expected to witness a promising growth rate during the forecast period.
• This is primarily due to the rising demand for haircare products (hairsprays & styling sprays, hair mousses, hair shines, and shampoos), personal care products (deodorants & antiperspirants, foams & gels, gel toothpaste, and cream foundation), and body care products (hydrating creams, self-tanning & skin-whitening lotions, and sun protection products).
• Moreover, the rising awareness regarding personal hygiene care is strengthening the demand for personal care aerosol products.

The following applications are included in the report:

• Industrial
• Residential
• Spray Paints
• Personal Care (Largest and Fastest-Growing Category)
• Others

Regional Insight

• Geographically, the northern region held the largest share of 55% in the Indian aerosol market in 2023. This is mainly attributed to the growing demand for personal care products in Uttar Pradesh, Punjab, Haryana, Delhi, and some parts of Rajasthan.
• In addition, the growing consumption of air freshening, cleaning, and maintenance products in this region drove the market for aerosols in India.
• The market growth is expected to be driven by the significant demand for spray cleaning and maintenance products from the automotive and aerospace, healthcare equipment, and other manufacturing industries.
• Furthermore, the growth in the manufacturing industry is expected to be driven by macroeconomic development, increasing capital expenditure by public and private players, and implementation of government reforms and incentives to encourage foreign and domestic investments in the end-use industries of the country.
• In addition, the growth is also ascribed to the surge in demand for personal care and household products such as deodorants, hair sprays, room fresheners, sanitizer sprays, and several other products.
• In India, aerosol products are also employed as cleaning products, including floor sanitizer sprays, glass cleaners, carpet cleaners, and treadmill lubricants.
• In addition, these aerosol products find application in the automotive industry, majorly in vehicle maintenance (lubricating vehicle parts and cleaning engine parts) and re-painting and polishing.
• These products, therefore, find wide adoption among various manufacturing facilities for automobiles, electrical & electronic goods, fast-moving consumer goods (FMCG), and several other products.

Further, regions analyzed for this report include:

• North (Largest Regional Market)
• West (Fastest-Growing Regional Market)
• South
• East

India Aerosol Market Share

The Indian aerosol market is fragmented in nature with high competition among players. In order to cater to the domestic demand, several small-scale domestic manufacturers, such as Aerol Formulations Private Limited and Indian Aerosols Pvt. Ltd., and a few international manufacturers, including 3M Company, are manufacturing such products in the country.

And, several small-scale distribution companies are importing majorly from China, Germany, Belgium, and the U.S. Furthermore, these companies have a diversified and comprehensive product portfolio to cater to various application areas in automotive and various other industries. Moreover, changing lifestyles, increasing disposable income, and increasing urbanization are creating lucrative opportunities for market players.

Indian Aerosol Industry News

• In July 2023, Viatris Inc. and Kindeva Drug Delivery L.P. announced the launch of Breyna Inhalation Aerosol.
• In February 2022, Glenmark Pharmaceuticals Limited, a pharmaceutical company, and SaNOtize Research & Development Corp. announced the introduction of its Nitric Oxide Nasal Spray under the brand name FabiSpray in India.