Decorative High-Pressure Laminates (HPL) Market is projected to be worth USD 115 Billion by 2030, registering a CAGR of 5.30% during the forecast period (2021-2030)
The global decorative high-pressure laminates market is projected to register healthy growth during the forecast period, 2022–2030. The market was valued at USD 11,968.0 million in 2021 and is projected to register a CAGR of 3.53% to reach USD 15,041.18 million by the end of 2030.
The low maintenance and installation costs of decorative high-pressure laminates market are expected to drive the market during the forecast period. Moreover, the environmentally friendly nature of the laminates is expected to create lucrative opportunities for the market. In addition to the superior mechanical and functional properties, decorative high-pressure laminates industry are easy to install as compared to hardwood floors and other substitutes. Moreover, they serve as an excellent option for flat top surfaces such as wall paneling, countertops, and desks/benches in schools. These laminates are highly durable and resistant to wear and tear. They are resistant to scratches and abrasion and thus are perfect for installation in heavy-traffic areas to withstand shock and impact. They can be installed using laminate glue or resin without any professional help, owing to which they require fewer installation costs.
Covid-19 Impact on Global Decorative High-Pressure Laminates Market
The outbreak has significantly impacted the chemicals & materials supply chains, international trade, and manufacturing operations across the world. The production of decorative high-pressure laminates market got declined amidst the COVID-19 pandemic as the market players had to shut production facilities or operate the facilities below the optimal production capacities to avoid the spread of the novel coronavirus. Additionally, the lack of raw materials due to supply disruptions due to border and trade restrictions have impacted the production of decorative high-pressure laminates. However, some large market players have continued operations at their production facilities. Furthermore, the declining prices of raw materials and low demand from the end-use industries have resulted in surplus stocks and, thus, reduced production.
The primary raw materials used to manufacture decorative high-pressure laminates market are kraft paper, phenolic resins, and melamine resins. The outbreak caused a huge impact on the supply of raw materials as the majority of its raw material is petroleum-based products. The petroleum industry was worst hit by the global COVID crisis, which affected the price margins of raw material as well as end products. Furthermore, phenolic resins and melamine resins are also used in other applications, such as medical instruments and medical equipment. Thus, their production was moderately affected by the crisis. However, the supply was limited to essential applications. Thus, the outbreak has resulted in the disruption of the supply-demand of raw materials.
The growth of the construction industry in the emerging economies of Asia-Pacific is likely to favor global market growth. These laminates are used in the manufacturing of cabinets, countertops, tabletops, case goods, wood panels, and flooring in residential and commercial buildings owing to their ease of application and cleaning. Also, there is a growing need for decorative high-pressure laminates in manufacturing ready-to-assemble (RTA) furniture, toilet cubicle systems, laboratory tables, and kitchen tops because of their high durability and aesthetic appeal. They serve as an affordable substitute for natural materials and can replace high-cost floorings, such as marble, granite, and slate. However, they are relatively expensive than low-pressure laminates because of high manufacturing costs. Moreover, the construction of residential and commercial buildings in developed and developing countries has increased on account of the growing population and rapid urbanization.
Low maintenance and installation costs of decorative high-pressure laminates
In addition to the superior mechanical and functional properties, decorative high-pressure laminates are easy to install as compared to hardwood floors and other substitutes. Moreover, they serve as an excellent option for flat top surfaces such as wall paneling, countertops, and desks/benches in schools. These laminates are highly durable and resistant to wear and tear. They are resistant to scratches and abrasion and thus are perfect for installation in heavy-traffic areas to withstand shock and impact. They can be installed using laminate glue or resin without any professional help, owing to which they require fewer installation costs.
The major raw materials used in the manufacturing of decorative high-pressure laminates are melamine, phenolic resins, methanol, formaldehyde, tissue paper, Kraft paper, and wood logs. Among these, the prices of phenolic resins, melamine, methanol, and formaldehyde directly depend on crude oil prices as they are derived from fossil fuels. Crude oil prices are highly volatile owing to the major influence of the Organization of Petroleum Exporting Countries (OPEC), which controls 40% of the world’s supply of oil. The OPEC sets the production levels and can influence the prices of oil and gas, based on decreasing or increasing production. Also, changes in supply and demand cause oil prices to fluctuate. When supply exceeds demand, the prices fall, and vice versa. Moreover, political turmoil, natural disasters, and production costs (refining) also affect the overall crude oil prices. Most of the manufacturers, such as Greenlam Industries Limited, import raw materials that incur high costs increasing the cost of decorative high-pressure laminates. In addition, in the absence of a formal hedging mechanism, the companies remain exposed to foreign exchange risks.
Increasing demand for advanced graphics and superior aesthetics has resulted in technical improvements in decorative high-pressure laminates production. These laminates are widely used in flooring and act as a better alternative to other flooring materials, such as granite or stone. Constant innovations have developed next-generation laminates with thin microscopic particles of aluminum oxide, which acts as a barrier and provides gloss retention and scratch resistance. High-pressure laminates are enhanced by a continuous improvement in texture and printing techniques that create advanced graphics and are more economical. Digital printing is one such method that is changing the flooring market with special features, such as digital lacquer embossing (DLE), increased design options, and online ordering.
Disadvantages of high-pressure laminates
One of the biggest drawbacks of high-pressure laminate countertops is that they cannot be used in extreme environments. This is because they have a low resistance to bacteria, chemicals, and corrosion. They also have low fungal resistance and do not hold up well in environments where water and moisture are present. They are irreparable. However, small scratches can be touched up with designated resin paint, but deep scratches and chips are not fixable. Furthermore, though laminate sheets have a protective layer for waterproofing, prolonged exposure to water can damage them.
Segmentation of Global Decorative High-Pressure Laminates Market
Geographically, Global Decorative High-Pressure Laminates Market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Increasing investments in the emerging economies of South-East Asia, including Thailand, Indonesia, Singapore, and Myanmar, for infrastructural development is projected to propel the growth of the regional market during the forecast period. China is the leading producer and consumer of decorative laminates globally. The demand for decorative laminates in Asia-Pacific is relatively high compared to other regions.
The growth of the Asia-Pacific market is also attributed to the presence of developing countries such as India and China. The key reason behind the growth of decorative laminates market is that these countries are growing rapidly in terms of population and economy, which ultimately results in the growth of per capita consumption. The increasing disposable income in these developing countries leads to increased spending on home interiors. These are some factors contributing to the growth of the decorative high-pressure laminates market in Asia-Pacific.
The major players are manufacturing significant volumes of decorative high-pressure laminates and have several manufacturing facilities across the globe. According to MRFR analysis, the global decorative high-pressure laminates market has a huge revenue base in Asia-Pacific, North America, and Europe. China, India, the US, and Germany are the major countries contributing to the global decorative high-pressure laminates market growth owing to the rising demand for decorative high-pressure laminates in the manufacturing of cabinets, RTV furniture, wall panels, and laminate flooring owing to their high resistance to moisture and abrasion and superior durability.
Key manufacturers of decorative high-pressure laminates, namely, Formica Corporation, Greenlam Industries Limited, Stylam Industries Limited, and Wilsonart LLC, adopt various strategies, such as capacity utilization and penetration of new variants to gain long-term growth. In addition, these strategies help the market players in strengthening their market position and increasing the global footprint. Additionally, they are adopting various strategies, such as capacity expansions, mergers and acquisitions, and product launches, to gain maximum revenue and long-term growth during the assessment period. For instance, Wilsonart acquired Laminate Works Dallas, a division of Laminate Works Inc, a Kansan City-based manufacturer of decorative high-pressure laminate panels market.
Some of the key developments include:
The global decorative high-pressure laminates Market is segmented by application, end-use, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global iron ore market emerging and fast-growing segments, regions, and countries.
Objectives of the Study
|Market Size||2030: 15,041.18 million|
|CAGR||3.53% CAGR (2022-2030)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Application, End-Use, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East &Africa|
|Key Vendors||Formica Corporation, Sonae Arauco, Greenlam Industries Limited, Wilsonart LLC, Panolam Industries International and Others|
|Key Market Opportunities||• Enhancement in the printing techniques and manufacturing of eco-friendly laminates|
|Key Market Drivers||• Increasing applications of decorative high-pressure laminates in the construction industry • Low maintenance and installation costs of decorative high-pressure laminates|
The global decorative high-pressure laminates market would register a growth of 3.04%.
Volatile raw material prices.
China would set the trend in decorative high-pressure laminates market.
Manufacturing cabinets, countertops, case goods, wood panels, and various types of flooring.
Formica Corporation (US), Greenlam Industries Limited (India), Merinolaminates (India), Wilsonart LLC (US), and Panolam Industries International, Inc (US),