Industry Report - Decorative Aesthetics Industry
What makes your product look, Attractive?
Introduction:
The decorative aesthetics industry is like the secret sauce in the recipe of consumer goods—it’s what makes products not just useful but irresistible.
From sleek automotive dashboards to eye-catching packaging in FMCG, and even high-tech medical devices, this industry is the one turning “meh” into “wow” while subtly persuading consumers to open their wallets.
India, the rising star in global decorative aesthetics manufacturing, is not just playing catch-up—it’s sprinting ahead. Armed with cost advantages, a talented workforce, and export-friendly strategies, the country is poised to cash in on the global craving for aesthetics.
This report dives deep into the trends shaping the industry, the tech upgrades making waves, and how India’s decorative prowess is setting the stage for a brighter, shinier future. So buckle up; the journey from functional to fabulous has never looked this good!
Market Overview:
Decorative aesthetics refers to components designed to improve the visual appeal, branding, and usability of consumer products. The main product categories include:
Logos:
Source: Crisil Report Logos serve as crucial branding components that help establish a company's identity and enhance product recognition. These logos come in various forms, such as chrome-plated (for a shiny, high-end appearance), metallic (for a more sophisticated and durable look), and 3D-Lux logos (an eco-friendly, modern alternative that uses advanced design techniques to give a premium feel).
These logos are widely used in the automotive industry, consumer electronics, and appliances, where they serve as essential elements in product design and marketing.
Decals and Stickers:
Source: Crisil Report These are adhesive graphics used to enhance the visual appeal and branding of consumer products, particularly in two-wheelers and passenger vehicles. Decals and stickers are often applied to the exterior of vehicles for both functional and decorative purposes, such as promoting the brand, providing model information, or adding stylistic elements.
They are available in a variety of materials, including vinyl and polyester, and are designed to withstand outdoor elements while maintaining a vibrant look.
Chromated Parts:
Source: Crisil Report Chrome plating is a process that applies a thin layer of chromium to the surface of products, giving them a sleek, shiny, and premium finish. These parts are commonly found in passenger vehicles, household appliances like refrigerators and washing machines, and even in luxury goods.
The chrome-plated finish not only enhances the aesthetic value but also provides additional durability, corrosion resistance, and a polished, high-end look. These parts are widely appreciated for their visual appeal and ability to elevate the overall design of a product.
Optical Plastics:
Source - CRISIL Report Optical plastics are high-performance materials used in applications requiring transparency, clarity, and durability. These plastics are primarily used in consumer electronics, such as touchscreens, infotainment systems, and control panels, where they enhance both the visual and functional aspects of the device.
Optical plastics often feature anti-reflective coatings, scratch resistance, and high optical clarity, ensuring superior performance in electronic devices that require precise user interactions and display quality
Overlays:
Source - Crisil Report Overlays are thin, durable layers applied to the surface of various consumer durables and industrial equipment to improve usability, tactile experience, and functionality.
Tactile overlays provide a smooth surface with a textured feel for enhanced grip and interaction, while capacitive overlays enable touch-sensitive functionality, making them essential in control panels, appliances, and industrial machinery.
These overlays are used in devices where user interface and interaction are critical, offering both aesthetic value and practical benefits like durability and responsiveness.
IMD/IML parts:
Source - CRISIL Report IMD/IML is a process for decorating or labelling injection moulded plastic parts or components during the plastic injection moulding cycle. IMD/IML techniques allow for the integration of decoration/labelling activities in the plastic injection moulding process.
IMD/ IML processes produce high-quality and visually appealing parts. These processes offer more durable and long-lasting decorations compared to traditional moulding and decorating techniques, such as painted/ printed injection moulded parts.
Table 1: Product Categories Summary.
Market Size and Growth
Globally, the decorative aesthetics market is growing rapidly, driven by increasing demand for premium and technology-enhanced designs.
In India, the market was valued at ₹19.9 billion in FY2021 and is projected to grow at a CAGR of 20%, reaching ₹49.2 billion by FY2026.
This growth is underpinned by the rising adoption of advanced aesthetics in automobiles, consumer durables, and new segments like medical devices.
Key Trends:
The demand for decorative aesthetics in fiscal 2021 was led by decals, stickers and aluminium badges (forming ~34-36% of demand), followed by chrome-plated parts (~23-25%), IMD/IML (12-14%) and appliques (9-11%).
Two-wheelers and passenger vehicles will continue to dominate the demand accounting for ~45-47% of the decorative aesthetic market each in fiscal 2026.
Consumer durables will contribute ~8-9% to the overall demand.
Demand for decorative aesthetics is expected to grow fastest in passenger vehicles at ~25% CAGR, followed by 19% and 16% CAGR in consumer durables and two-wheelers respectively during the fiscal 2021-26 period.
Table 2: Insights from the Market
Industry Observation:
1. Growth in Application Segments
India is among the fastest-growing markets for passenger vehicles, two-wheelers, and consumer durables, with production projected to grow at a 10-12% CAGR from FY21-26. Factors driving this growth include low penetration levels, rising disposable incomes, and improved road infrastructure.
Passenger vehicle exports, accounting for ~13% of production in FY21, are expected to grow at 11-13% CAGR during the same period.
The consumer durables market is also projected to expand at 10-12% CAGR, driven by increasing urbanization, nuclear families, and higher standards of living.
India’s emergence as a manufacturing hub for global OEMs, catering to both developed and developing economies, further amplifies export opportunities.
2. Shift Toward Premium Products
Consumer preferences are shifting toward premium, aesthetically superior, and tech-savvy products, reflecting lifestyle aspirations.
The share of small cars has declined from ~63% in 2015 to ~53% in 2021, while larger cars and utility vehicles (UVs) have gained traction.
By 2026, the contribution of mid- and top-variants is expected to grow by 5-10% in small cars and 15% in larger cars and UVs.
Consumers increasingly associate discretionary products like cars and two-wheelers with lifestyle status, fueling demand for premium offerings.
3. Increasing Penetration of Superior Aesthetic Products
The adoption of advanced decorative aesthetics is rising, particularly in two-wheelers, passenger vehicles, and consumer durables.
Optical Plastics: Currently limited to high-end variants (e.g., only ZXi/ZXi+ Swift models offer 7-inch touchscreens), penetration is expected to expand as touch navigation becomes standard in mid/top variants.
Chrome-Plated Parts: Usage has grown from inner door handles to external trims, such as front grilles, trunk lid liners, and fog lamp covers, as manufacturers respond to consumer demand.
Increasing penetration of these components will significantly boost revenues for aesthetic product suppliers.
4. Technological Advancements in Aesthetic Products
Technological innovation is driving a shift toward higher-cost, higher-value aesthetic components, enhancing both consumer appeal and manufacturer differentiation.
2D to 3D Dials/Appliques: 3D dials are gaining traction, offering superior aesthetics and fetching 2-3x higher realizations per unit than traditional 2D dials.
Source: Crisil Report Analogue to Analogue-Digital Dials: These are featured in popular two-wheelers like Hero Passion Pro and Bajaj Pulsar 125, costing 6-8x more than purely analogue dials.
Source: Crisil Report
5. EVs Driving Growth in Decorative Aesthetics
The adoption of electric vehicles (EVs) is set to boost the decorative aesthetics industry due to a higher inclination toward incorporating premium aesthetic components in EVs compared to internal combustion engine (ICE) vehicles.
Factors Driving EV Adoption in India (FY21-FY26):
Increasing environmental awareness and concerns about climate change.
Improved EV charging infrastructure.
Falling battery prices leading to improved total cost of ownership for EVs.
Entry of mainstream automakers providing diverse and appealing EV options.
Technological Superiority of EVs Over ICE Vehicles:
EVs globally showcase advanced technology and superior aesthetic designs compared to ICE vehicles. For example, EVs often feature more connected systems, larger displays, and advanced branding elements.
In India, the Tata Nexon EV features 3D-lux logos, while the ICE version uses traditional chrome-plated logos. Rising EV adoption will likely increase demand for innovative and high-value decorative aesthetics.
6. Faster Growth Than the Underlying Industry
India’s decorative aesthetics market is underpenetrated compared to global standards, especially in automobiles and consumer durables. While the two-wheeler, passenger vehicle, and consumer durable markets are expected to grow at 10-12% CAGR from FY21-FY26 in volume terms, the decorative aesthetics market is projected to grow at a ~20% CAGR, nearly 1.6-1.8x faster.
Challenges and Risks
1. High Dependency on Automotive and Consumer Durable Markets
With most of its demand tied to automobiles and consumer appliances, the industry’s fortunes are often hitched to the cyclical nature of these sectors. A slowdown in vehicle sales or appliance purchases can leave aesthetic manufacturers wondering, “What’s the backup plan?”
2. Cost Pressures and Raw Material Volatility
The prices of critical raw materials like chrome, plastics, and specialty coatings can swing unpredictably. For manufacturers, it’s like playing a game of Monopoly where the rent keeps changing every time you pass Go.
3. Intense Global and Domestic Competition
With global players eyeing the Indian market and domestic competition heating up, companies must innovate constantly. It’s a bit like a beauty pageant—if your product isn’t the best-dressed or most appealing, it’s not getting the crown (or the customer).
4. Technological Barriers and Rapid Innovation
The shift to advanced technologies like 3D appliques and IML/IMD parts is exciting but costly. Smaller players may feel like they’re trying to join a Formula 1 race while still figuring out how to drive a manual car.
5. Stringent Environmental and Regulatory Norms
With stricter rules on emissions and waste disposal, staying compliant can be an expensive affair. It’s like cleaning your house for surprise guests who keep raising the standards every time they visit.
6. Supply Chain Disruptions
Global supply chain challenges, from chip shortages to logistical delays, can throw production schedules off-track. It's a tough gig when you’re ready to make your masterpiece, but your paint (or chrome) hasn’t arrived yet.
7. Slow Adoption of EVs and Premium Products in Certain Segments
While EVs and premium features are the future, adoption in India is gradual, especially in smaller cities. Manufacturers might feel like they’re throwing a party and waiting for guests who are taking their sweet time to show up.
Table 3: Some other Challenges and their impacts.
Key Players in the Industry
Domestic Leaders
SJS Enterprises: A dominant player in the Indian market, specializing in 3D appliques, IML/IMD parts, chrome-plated components, and optical plastics. It has a strong foothold in automotive and consumer segments, with growing export capabilities.
Classic Stripes: Focuses on premium decals and graphics for two-wheelers and passenger vehicles.
Subros Limited: Supplies advanced aesthetic components, especially for air conditioning systems in vehicles.
Global Giants Operating in India
Faurecia: A major player in automotive interiors and decorative trim components, leveraging cutting-edge technology.
Plastic Omnium: Known for high-quality aesthetic components, particularly in the passenger vehicle segment.
Walter Pack (via SJS): Specializes in IMD/IML technologies for premium automotive applications.
Niche and Aftermarket Players
Minda Corporation: Offers customized chrome-plated accessories and aesthetic components for OEMs.
Autographix: Targets the aftermarket segment with personalized decals and decorative kits for cars and bikes.
Lumax Industries: Focused on optical plastics and advanced lighting solutions that double as aesthetic enhancements.
Emerging and Specialized Players
Xyztec and Decoplast: Smaller but innovative firms focusing on IMD/IML components and high-end decorative trims for electronics and appliances.
SMR Automotive Mirrors: Combines functionality with aesthetic appeal in vehicle mirrors and trims.
Conclusion
The decorative aesthetics industry is like a teenager on the brink of adulthood—full of potential but navigating the pressures of rising expectations, rapid technological changes, and a world that’s watching closely. With India emerging as the cool kid in the global manufacturing neighbourhood, there’s plenty of room for this sector to shine.
To stay ahead, manufacturers need to juggle innovation, sustainability, and the art of expanding portfolios faster than a social media trend. The key is to keep up with the times—think eco-friendly bling and tech-savvy trims that customers will adore.
The future of decorative aesthetics isn’t just about looking good; it’s about doing good too. Balancing premium appeal with environmental responsibility will be the ultimate power move. After all, in this industry, it’s not just about creating products—it’s about creating impressions that last.
If you like the hard work we put in, you can invest in us:
For our Non-Indian audience: You can donate to us through PayPal. Click here.
For our Indian audience, UPI QRs are given below:
