The project report includes Present Market Position and Expected Future Demand, Market Size, Statistics, Trends, SWOT Analysis and Forecasts. Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry.
The Indian particle board market was valued at over USD 720 million in 2020, and the market is projected to register a CAGR of more than 11.5% during the forecast period (2021-2026).
The impact of COVID-19 on the furniture industry was severe. During January 2020 – September 2020, the gross absorption of commercial office fell by 46% year on year to 22.5 million sq. ft due to prolonged lockdown in the country impacting the furniture market in the commercial sector. Construction work in the country has come to a standstill due to the nationwide lockdown to combat the COVID-19 pandemic kicking in, triggering concerns that the companies would see revenues being hurt and may even incur losses in some projects. The country-wide lockdown imposed by the government to check the spread of coronavirus has resulted in construction companies announcing a shutdown of operations. This is likely to delay the implementation of projects, leading to cost overruns and impacts on the workforce. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market studied.
In the long term, a major factor driving the market studied is the increasing demand for furniture in the office space and hospitality sectors. International hotels are expanding their presence in the country and are likely to account for around 47% of the Indian tourism and hospitality sector. Many hospitality groups (both Indian and foreign) are investing in projects related to hotel construction in India. For instance, Hilton, a global hospitality major, is planning to open another 18 hotels across the country by 2021, which is likely to boost market demand.
• Increasing usage of medium-density fiberboard as a substitute to particle board can hinder market growth in the country.
• In the raw material segment, wood dominated the market in 2020 and is expected to grow during the forecast period.
• Upcoming construction and infrastructure projects in the country are likely to act as an opportunity in the future.
Scope of the Report
Particle board, also known as fiberboard, is an engineered material that is made of separate fibers. Fiberboards are generally made of engineered wood, which is either hard or softwood. This is mixed with wax and resin binders by applying high pressure and temperature. The India Particle Board is segmented by raw material and application. By raw material, the market is segmented into wood, bagasse, and other raw materials. By application, the market is segmented into construction, furniture, infrastructure, and other applications. The report offers market size and forecasts for the Indian particle board market in revenue (USD million) for all the above segments.
Key Market Trends
Increasing Demand for Furniture from the Office Space and Hospitality Sectors
• Office space leasing in the country has increased by about 27%, crossing over 69.4 million sq ft in 2019.
• In India, the furniture market is expected to register a growth rate of more than 20% in the coming years.
• With the demand from technology, e-commerce companies, and banking-financial services, the office space requirement in India is significantly rising, resulting in the construction of new offices, thereby enhancing the demand for furniture in the offices. Bengaluru city is leading the office demand and supply activity in the country.
• The travel and tourism contribution to the GDP in the year 2019 was 6.8% of the total economy, USD 194.3 billion.
• The Indian government is supporting the tourism and hospitality sector with various initiatives and investments. Under the Union Budget 2020-2021, INR 207.55 crore was allocated to the Ministry of Tourism to develop tourist circuits under PRASHAD scheme. In addition, the government created a category of visa, M-visa category, to encourage medical tourism.
• An increase in the demand from the office space and hospitality sector projects, coupled with several government initiatives and investments, is likely to boost the furniture market’s growth significantly.
Furniture to be the Major Application
• India is a growing economy and holds great potential for future market opportunities. The country witnessed a decline in its GDP growth rate to around 5% in 2019, from 7.1% in 2018. The stagnation caused by industrial output, greenfield investment, and flattened demand has led to a decline in the country’s growth rate.
• The outbreak of COVID-19 has further affected the domestic construction and manufacturing industries in early 2020. This is expected to continue in 2020, which, in turn, is expected to witness a decline in the consumption of metamaterials in the country. India’s economy is projected to contract to 10.3% in 2020 following a longer lockdown period and slower recovery than anticipated in April. However, the GDP is expected to reach 8.8% in 2021.
• Particle boards have numerous uses in the furniture industry, which experienced high demand from the residential and commercial sectors. Plain particle boards are used in interior applications, such as beds, storage units, wardrobes, computer tables, bookshelves, shoe racks, and television cabinets.
• Wood veneer particle boards are used in kitchen cabinets, storage units, tabletops, countertops, wardrobes, and dressing units due to their durability and better performance in a moist environment compared to plain particle boards.
• According to the joint report by the CREDAI and JLL, the Indian real estate sector is estimated to be worth USD 180 billion by 2020, and the contribution of the residential segment to the country’s GDP is expected to be 11%. The construction of buildings and residential houses has increased significantly, owing to increasing income level and various housing schemes initiated by the government.
• With the government support regarding the intention to provide employment and create jobs for the individuals in the country, many startup companies are being started, resulting in an increasing number of offices. In June 2018, the Prime Minister of India, Narendra Modi, announced that funds of INR 10,000 crore were created to ensure INR 1 lakh crore funding for startups.
• According to the data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), Foreign Direct Investment (FDI) in construction development and activities stands at USD 42.97 billion between April 2020 and September 2020.
• The aforementioned factors have positively impacted the demand for furniture in residential houses and offices in the country, driving the demand for particle boards during the forecast period.
Competitive Landscape
The Indian particle board market is highly fragmented due to the presence of different players in different states. The major part of the market is highly unorganized. The major companies include Shirdi Industries Ltd, Associate Décor Ltd, Century Prowud, Krifor Industries Pvt. Ltd, and Archidply Decor Ltd.
Major Players
• Shirdi Industries Ltd
• Archidply Decor ltd.
• Century Prowud
• Associate Decor Ltd.
• Krifor Industries Pvt. Ltd.
• Fletcher Building Limited
• Omnova Solution Inc.
• Greenlam Industries Ltd.
• Merino Group
• Illinois Tool Works, Inc.
• Abet Laminati S.P.A.
• Archidply Industries Ltd.
• Fundermax GmbH
• Panolam Industries International, Inc.
• Stylam Industries Ltd.
