In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
December 2019: Greenlam Industries Limited announced the launch of an exclusive display showroom which displays a range of products of its exclusive brand NewMika Laminates in Zirakhpur (Chattisgarh), India. The showroom will help the customers of the company to experience the wide product range offered by the company and also choose designs and textures from the selection.
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.
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.
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. CLICK TO DOWNLOAD SAMPLE REPORT
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.
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.
Ans: Factors such as rapid urbanization and growing government’s focus towards developing low cost housing and infrastructure are some of the major factors that are driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of 4.83% over the forecast period, i.e. 2019-2027.
Ans: The major players 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.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is majorly segmented by product, application, end user, usability, sector and by zones.
Ans: The product segment is anticipated to hold the largest market share and attain a CAGR of 4.55% over the forecast period owing to the product being used as an alternative to wood-based product and being available in wide forms.
Ans: Challenges faced with the unavailability of certain raw materials used in the manufacturing of plywood and laminates is one of the major factors anticipated to act as a barrier towards the growth of the India plywood and laminates market.