India Particle Board Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Particle Board Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian particle board market was valued at around USD 380 million in 2021and it is expected to register a CAGR of over 12% during the forecast period (2022-2027).

Particle board is a wood-based substance commonly used in flat-pack furniture, interior cabinets, and work tables (finished with HPL). It is also used to make wall and floor panels. With its extensive use in residential and office furniture, including dressing units, tabletops, kitchen cabinets, wardrobes, and bookshelves, among others. The market saw positive growth in 2021 due to the growing construction industry and is expected to see growth in demand for particle boards in various applications in the coming years.

Key Highlights

• The factors driving the market's growth are increasing demand for furniture in the office space and hospitality sectors and the desirable properties of particle board over other engineered wood products.
• The availability of substitutes such as Medium-density Fiberboard (MDF) is likely to restrict the market growth.
• Upcoming construction and infrastructure projects in the country are likely to act as an opportunity in the future.

Key Market TrendsWood is Expected to Dominate the Market

• Particle board is a low-cost product that is created from waste wood. It is manufactured by pressing resin and sawdust together with heat. In other words, particle boards are generally made of wood forms, such as sawdust, shavings, flakes, and chips, which are obtained as waste products during the machining of wood.
• As a combination of two or more types, these are employed in particle boards. Particle boards are primarily made from sawdust. To make particle board, it is mixed with either shavings, flakes, or chips, and dried with the use of a resin or binder.
• Sawdust is the first and most consumed wood material in particle boards. Sawdust is composed of fine particles, produced as a by-product, or waste product of the woodworking processes, such as planning, sawing, milling, routing, drilling, and sanding. According to Trademap, India has imported about 2,360 metric tons of sawdust and wood waste and scrap and exported about 263 metric tons in 2020.
• Shavings are a natural substance that is mostly produced during the machine processing of wood in lumber mills. In addition, they are a waste product in gang saw and/or planing mills, as well as other wood processing methods.
• Flakes are sorted according to their sizes, as the middle layer contains large flakes, and the top and bottom layers contain fine flakes to get a hard surface. Particle board is made by bonding wood flakes, sorting them by size, and pressing them; the larger flakes make the intermediate layer, while the small flakes produce the hard surface. For the quality of the particle boards, a consistent moisture content for the flakes used in manufacture is essential.
• Woodchips are small to medium-sized pieces of wood created by cutting or chipping larger pieces of wood, such as trees, branches, logging residues, stumps, roots, and wood waste, into smaller pieces. Because the surface layer's wood chips are thinner than the middle layer's, the particle board's surface is denser and more compact than the middle layer.
• All such factors are expected to drive the production of particle boards from wood.

Furniture Segment Dominated the Market

• India is a growing economy and holds great potential for future market opportunities. According to IMF forecasts, the country is expected to register a GDP growth rate of about 8.2% in 2022.
• Particleboards 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 than plain particle boards.
• ITC’s Hotel Group invested in new hotel projects by 2022 in Gujrat, Jammu & Kashmir, Odisha, Himachal Pradesh, Andhra Pradesh, and Punjab, which may support the market studied.
• In November 2021, the Government of India initiated the construction of a new airport in Noida, with an estimated investment of more than INR 29,000 crore. The said structure is projected to be completed by 2024. This development may boost the construction of hotels and lodging spaces nearby, thus augmenting the demand for furniture.
• Investments of over USD 20 billion in Gujarat International Finance Tec-City (GIFT) to build office spaces are further anticipated to support the market. This project will include office spaces for insurance, banking, IT, and other sectors. The project is anticipated to be complete by 2024.
• Such factors are likely to positively impact the demand for furniture in residential houses and offices in the country, thus driving the demand for particle boards during the forecast period.

Competitive Landscape

The Indian particle board market is partially consolidated due to the presence of different players in different states. The major part of the market is highly unorganized. The top companies (not in any particular order) include Associate Décor Ltd, Shirdi Industries Ltd, Century Prowud, Archidply Decor Ltd, and Green Land Particle Boards Private Limited.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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