India Particle Board Market - Segmented by Application and Raw Material - Growth, Trends, and Forecast (2018 - 2023)
The India particle board market is expected to witness a CAGR of 11.13%, over the forecast period (2018 - 2023). The market is driven by the increasing demand for furniture in office space and hospitality sectors. In addition, the upcoming construction and infrastructure projects will increase the demand for particle board in future.
Increase in the Demand for Furniture in Office Space and Hospitality Sectors
Office space leasing in the country has increased by about 10%, crossing over 20 million sq. ft. in the first half of 2018. Office leasing in top eight cities increased by 60% between 2013-17. 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. Bengaluru city is leading the office demand and supply activity in the country. According to CBRE (Commercial Real Estate Services), commercial office stock in the country is expected to reach 600 million sq.ft by the end of 2018. Around 20% hike in two years, and nearly 11 million sq. ft. of space was occupied by companies in the top eight markets.
The hospitality sector (hotels, lodges, etc.) is growing rapidly in terms of revenue, due to an increase in the consumer spending of individuals and number of tourists (both domestic and foreign combined) visiting all states in India. In addition, the requirement for furniture in the hotel rooms is increasing significantly, owing to the rise in number of hotel rooms from the past decade. In 2017, the number of hotel rooms increased by 4.92% over 2016, reaching 119,200 hotels in the country. Thus, all the aforementioned factors are expected to drive the Indian particle board market’s growth during the forecast period.
Furniture - A Huge Market Potential
Particle boards have numerous uses in the furniture industry, which experienced high demand from 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 moist environment, as 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 contribution of the residential segment to the country’s GDP is expected to be 11%. The construction of buildings and residential houses have increased significantly due to the growth of Indian construction sector. 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 the 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.The aforementioned factors impact the demand for furniture in residential houses and offices in the country, in turn, affecting the demand for particle boards during the forecast period.
Key Developments in the Market
- June 2017- CenturyPly marked out capex plan of INR 282 crore in the next two years, for its various expansion projects. It also invested INR 60 crore in particle board.
Major Players -Associate Décor Ltd., Shirdi Industries Ltd., Green land Particle boards, CenturyPly, and Archidply, among others.
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