India Plywood and Laminates Market Overview
The increasing focus of the government for low cost housing and infrastructure development, coupled with the growth in the construction and furniture industry in the country is believed to benefit the expansion of the India plywood and laminates market. Additionally, increasing demand for plywood and laminates in various end user industries, such as furniture industry, real estate industry, coupled with the rapid urbanization in the country are some of the factors anticipated to promote towards the growth of the India plywood and laminates market. Moreover, recent changes being made in the goods and service tax in the country has resulted in lowering the price difference of plywood and laminates sector between organized and unorganized sector, which is also anticipated to be one of the major key factors contributing towards the growth of the India plywood and laminates market. Further, the India plywood and laminates market, which accounted for a market value of USD 4790 million in the year 2018, is slated to grow at a highest CAGR of 4.83% over the forecast period 2019-2027 and reach a market value of USD 7323.3 million in 2027.
Market Segmentation Synopsis
By Product
The India plywood and laminates market is segmented on the basis of product into plywood and laminates. Plywood segment is estimated to expand at a CAGR of 4.55% and is showcasing great potential for the future growth of the segment. Plywood is a new alternative of wood-based products. These are used for commercial and residential applications and are made up from sheet of wood veneer. Plywood are available in different types such as waterproof plywood, decorative plywood, commercial plywood and many others. Increasing demand for plywood in the nation is opening several new opportunities for investors and manufacturers from foreign to invest in the Indian market. Further, the laminate segment is estimated to achieve absolute $ opportunity of USD 676.2 million between the years 2018 and 2027.
By Application
The India plywood and laminates market is also segmented on the basis of application into furniture, building interior & construction, packaging and others. It is observed that there is a high demand for plywood and laminates for the manufacturing of furniture which is promoting the growth of the furniture segment. Plywood and laminates offer a decorative look to the furniture. As such, consumers are preferring the use of plywood and laminates in replacement of raw wood-based products. The furniture segment is anticipated to attain a CAGR of 4.97% during the forecast period. Moreover, the building interior & construction segment is anticipated to grow with the highest CAGR of 5.61% and attain an absolute $ opportunity of USD 813.6 million during the assessment period.
Market Drivers and Challenges
Growth Indicators
According to the statistics of the Ministry of Housing and Urban Affairs, Government of India, out of the total population in India (population census of 2011), 31.16% of the population are in urban areas.
The India plywood and laminates market is thriving on the back of rapid amplification in the urbanization of the country, which is contributing to the growth of the furniture and construction industry, in turn is expected to drive the growth of India plywood and laminates market during the forecast period. Moreover, the replacement cycle of old furniture is anticipated to lower down at a massive rate over the years, raising the need amongst furniture manufacturers to increase their manufacturing scale, which in turn will raise the demand for plywood and laminates from the end user industries. Apparently, several other factors, which include supportive housing facilities by the government of India that promotes low and affordable housing to the low and middle income families, along with the implementation of goods and service tax (GST) in the nation’s tax reforms, which has lowered the price difference between the organized and unorganized sectors, is letting to the inclination of consumers towards branded wooden products. Such factors are anticipated to drive the growth of the India plywood and laminates market.
Barriers
Challenges faced with the unavailability of certain raw materials used in the manufacturing of plywood and laminates raises the overall production cost of the manufacturer, which is anticipated to have a negative impact on the growth of the India plywood and laminates market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the India plywood and laminates market are Greenlam Industries Limited, Greenply Industries Limited, Century Plyboards (I) Limited, Uniply, Duroply Industries Limited and National Plywood Industries Ltd. Apparently numerous companies are investing massively and focusing on expansion in product mix and product line so as to gain an extra edge of competitiveness in the India plywood and laminates market.
