India Plywood Market

The India Plywood market segmentation, based on Sector, includes Organized and Unorganized. The unorganized segment dominated the market mostly. India's rural and semi-urban regions are undergoing rapid infrastructure expansion, particularly in the realms of housing, small-scale construction, and renovation ventures. The unorganized plywood sector effectively serves these markets, leveraging its competitive edge in affordability and widespread accessibility.

Figure 1: India Plywood Market, by Sector, 2023 & 2032 (USD Billion)

The India Plywood market segmentation, based on Product Type, includes Marine Ply and Commercial Ply. The commercial ply category generated the most income. In the manufacturing process of commercial plywood, there is minimal waste as it doesn't involve sawing, ensuring efficient wood utilization. This process results in plywood with clear texture, excellent bending resistance, and reduced likelihood of deformation. Commercial plywood offers convenient transportation and installation, along with a pleasing decorative finish, albeit with a slightly lower load-bearing capacity compared to fine core boards.

Following boiling, commercial plywood exhibits robust weather resistance and durability against high temperatures, making it a preferred choice for various applications, including marine, residential, and railway usage.

The India Plywood market segmentation, based on Application, includes Residential and Commercial. The residential generated the most income. The residential sector has emerged as the leading segment, driven by increased usage in diverse applications such as flooring, cladding, doors, framing, paneling, shear walls, stairs, and portal frames. This trend is further bolstered by the introduction of innovative designs and an extensive furniture product range worldwide. Additionally, the growing preference for flexible and lightweight plywood as a substitute for solid wood is fueling market expansion.

The India Plywood market segmentation, based on Consumer Price, includes Less than INR 60 per sq. Ft., INR 60-79 per Sq. Ft., INR 80-94 per Sq. Ft., INR 95-104 per Sq. Ft., INR 105-115 per Sq. Ft., and Above INR 115 per sq. Ft. The Less than INR 60 per Sq. Ft category generated the most income. Plywood priced under INR 60 per square foot offers affordability, catering to a broad spectrum of consumers, especially those with tighter budgets or undertaking cost-sensitive projects. This accessibility is particularly significant in markets where price sensitivity prevails.

The surge in demand for building materials, including plywood, in mass housing projects and urban development initiatives, driven by the Indian government's focus on affordable housing schemes, further fuels the growth of plywood priced below INR 60 per square foot. These products align with the budget constraints of such projects, consequently propelling their expansion.

The India Plywood market segmentation, based on Dealer Price, includes Less than INR 60 per sq. Ft., INR 60-79 per Sq. Ft., INR 80-94 per Sq. Ft., INR 95-104 per Sq. Ft., INR 105-115 per Sq. Ft., Above INR 115 per sq. Ft. The Less than INR 60 per Sq. Ft category generated the most income. In segments such as low-income housing or temporary structures, functionality often takes precedence over aesthetics or durability for many consumers. While plywood is priced below INR 60 per sq.

Ft. may not match the quality or longevity of higher-priced alternatives, but it still meets the fundamental functional needs at a more affordable price point. Consequently, affordability becomes the primary consideration for these consumers, outweighing other factors.

A significant surge in building constructions is evident across India, primarily driven by the escalating global population and rapid urbanization trends. In 2021, the residential market witnessed the launch of over 232 thousand housing units nationwide. Despite a substantial demand for housing, residential launches have remained consistently high in recent years. Notably, Hyderabad experienced a remarkable 179 percent increase in housing launches in 2021, while the national capital region of Delhi saw a surge of 110 percent compared to the previous year.

The Mumbai Metropolitan Region led in residential property launches in Q1 2022, marking a significant quarter-on-quarter growth of 92 percent and a year-on-year increase of 126 percent, with over 28,000 new housing units launched compared to 12,000 in Q1 2021. East Pune emerged as the top location for new residential unit launches in Q1 2022, accounting for 28 percent of the total projects. Gurugram, known as India's financial and technology hub, witnessed a quarterly growth of 35 percent, launching more than 3,800 new residential units in Q1 2022.