India Wood Market Outlook to 2028

India Wood Market Overview

India Wood Market size in 2023 is valued at USD 0.5 billion. This market is primarily driven by robust demand from the construction, furniture, and interior design industries. The booming real estate sector, especially in urban regions, further supports the wood market. Growth in consumer disposable income has led to higher spending on home improvement, increasing demand for high-quality wood products.

Key players in the Indian wood market include Greenply Industries, Century Plyboards (India) Ltd, Action TESA, Archidply Industries, and Shirdi Industries Ltd. These companies have significant market presence due to their broad distribution networks, innovation in product offerings, and sustainability efforts. Their advanced manufacturing facilities and investment in research and development help them dominate the market.

In 2024, Century Plyboards (India) Ltd. has launched a new product line called Century Cubicles, expanding its plywood offerings. Designed for restroom and locker solutions, these cubicles are made from durable materials that resist wear and tear, suitable for all age groups. The products utilize European papers, emphasizing sustainability and resource efficiency.

The cities dominating the wood market include Delhi, Mumbai, Bengaluru, and Hyderabad. These cities have large construction and real estate projects, fostering the growth of the wood market. Bengaluru and Hyderabad, in particular, benefit from the expansion of IT parks and office spaces, increasing demand for high-quality wood for interiors and furniture.

India Wood Market Segmentation

By Product Type: India Wood Market is segmented by product type into solid wood, plywood, veneers, and particleboards. In 2023, plywood holds the largest market share due to its durability and versatility in construction and furniture manufacturing. Plywood is widely used in home interiors, including doors, cabinets, and flooring. Its cost-effectiveness and resistance to water and termites make it a preferred choice among consumers.

By End-Use Industry: The wood market is segmented by end-use industries such as construction, furniture, interior design, and packaging. The furniture segment dominates the market in 2023. Growing demand for modular and customized furniture in urban areas is driving this segment, with consumers preferring quality wood materials that offer both aesthetic and functional appeal. Companies in the furniture industry rely heavily on durable wood products for long-lasting pieces.

By Region: India Wood Market is divided into North India, South India, East India, and West India. In 2023, North India commands the largest market share, driven by significant infrastructure projects. The rapid urbanization in the region and government projects such as Smart Cities Mission are contributing factors. North India also benefits from a well-established supply chain for wood and timber products.

India Wood Market Competitive Landscape

Company

Establishment Year

Headquarters

Greenply Industries

1990

Kolkata, India

Century Plyboards

1986

Kolkata, India

Action TESA

2008

New Delhi, India

Archidply Industries

1976

Bengaluru, India

Shirdi Industries Ltd

1993

Mumbai, India

Archidply Industries: In 2024, Archidply showcased its innovative products, including Medium-Density Fiberboard (MDF), Extreme Density High Moisture Resistance (EDHMR), Prelaminated MDF, High-Pressure Laminates (HPL), and superior-quality Plywood, at the Matecia building material extravaganza held at Pragati Maidan from August 18th to 20th. The showcase aimed to reshape industry standards and set the construction world abuzz.

Action Tesa: In 2023, Action Tesa has introduced India's first genuine and patented green HDHMR boards. These boards are manufactured using Agri-Wood and have a density of more than 850 Kg/m3, making them dense and moisture-resistant. The HDHMR boards are suitable for making furniture, kitchen shutters, door shutters, partitions, packaging industry furniture, and outdoor fixtures.

India Wood Industry Analysis

Growth Drivers:

Increased Demand from Real Estate Sector: Indian wood market is witnessing substantial growth, driven by the booming real estate sector. The annual demand for wood in India is currently around 63 million cubic meters, with 30 million cubic meters produced domestically and 33 million cubic meters imported. This surge in housing projects, especially in urban areas, is significantly increasing demand for wood-based materials like plywood, veneers, and solid wood for construction and interior fittings.

Rise in Furniture Exports: The Indian government’s push for Make in India has led to increased wood furniture exports. From March 2023 to February 2024, India exported 70,754 shipments of furniture, marking a 10% growth compared to the previous year. In February 2024 alone, there were 6,576 shipments, representing a 19% year-on-year increase from February 2023. This trend is driving higher demand for quality wood and wood-based products domestically.

Sustainability and Eco-Friendly Products: Sustainability is becoming a key growth driver in the Indian wood market. Bamboo cultivation in India covers an area of 11 million hectares, making it one of the richest bamboo resources in the world. Approximately 1.49 lakh artisans are actively involved in making bamboo products in Tripura alone. This initiative aligns with the increasing consumer preference for eco-friendly and sustainable furniture.

Challenges
:

Deforestation and Raw Material Shortage: India’s forest cover was reported to have declined over the past decade, leading to an acute shortage of timber. This shortage is directly impacting the supply chain for wood-based industries, leading to increased prices and delays in production. Additionally, the growing demand for timber in construction and furniture manufacturing has exacerbated the supply-demand gap, further straining the industry.

Stringent Import Regulations: The imposition of stricter import regulations on wood products has affected the market negatively. The government increased customs duties aimed at promoting domestic production. However, this has led to supply bottlenecks, particularly for imported high-quality hardwoods used in premium furniture manufacturing. This has affected businesses relying on imported timber, causing supply chain disruptions.

Government Initiatives:

National Bamboo Mission: National Bamboo Mission (NBM) is a centrally sponsored scheme launched by the Government of India in 2018-19 to promote the holistic growth of the bamboo sector. Till date, 367 bamboo nurseries, 72 treatment and preservation units, 375 product development units, and 95 bamboo market infrastructure projects have been established. By fostering bamboo-based industries, the government is actively supporting the shift from traditional wood to more sustainable alternatives, addressing deforestation concerns while boosting rural incomes.

Goods & Services Tax: The introduction of the Goods and Services Tax (GST) in 2017 has had a significant impact on the wood industry in India. GST has simplified the tax structure, reducing the burden on businesses and encouraging growth in the sector. GST removed the tax barriers between states, making inter-state trade easier for the wood industry. This has expanded the market for wood products, allowing businesses to reach a wider customer base across the country.

India Wood Future Market Outlook

India Wood Market is poised for exponential growth, driven by increased demand from both the domestic and international markets. Urbanization, large-scale infrastructure projects, and expanding exports will continue to drive the need for high-quality wood products in India.

Future Trends

Adoption of Sustainable Wood Alternatives: In the future, the Indian wood market will witness a shift towards sustainable materials like bamboo and recycled wood. With government initiatives promoting eco-friendly alternatives, businesses will increasingly focus on producing sustainable wood products that appeal to environmentally conscious consumers. This shift will also attract international buyers seeking eco-friendly sourcing, positioning India as a global leader in sustainable wood production.

Increased Automation in Wood Manufacturing: Automation in wood processing will play a crucial role in improving productivity and reducing costs. Wood companies are expected to adopt more automated manufacturing technologies, streamlining production and enabling mass production of high-quality wood products to meet rising demand. Furthermore, automation will allow businesses to maintain competitiveness in both domestic and export markets by reducing lead times and improving scalability.
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