Plywood Market is estimated to witness high growth owing to rising infrastructure development projects and growing modern furniture industry
The Plywood Market is estimated to be valued at USD 61.47 Bn in 2024, exhibiting a CAGR of 6.5% over the forecast period (2024-2031). Furthermore, rising investments in commercial and residential construction projects across developing nations are also fueling the market growth.
Rising infrastructure development projects
The global plywood market is primarily driven by the rapid growth of the construction industry. Plywood finds widespread application in various construction activities such as formwork, flooring, wall paneling, roof decking, and others. Numerous governments around the world are investing heavily in public infrastructure development such as roads, bridges, dams, hospitals, schools, and others. This has augmented the demand for wood-based construction materials including plywood.
Growing modern furniture industry
The burgeoning furniture industry is another key factor propelling the consumption of plywood boards. Plywood is commonly used as a surface material and backing in the manufacturing of modern furniture such as tables, chairs, cabinets, shelves, and others. Moreover, the rising trend of online shopping and changing consumer lifestyles have boosted the sales of ready-to-assemble furniture which uses plywood as a core material. This, in turn, is fueling the sales across the global plywood market.
Rapid Growth of Construction Industry
The construction industry has seen rapid growth in recent years due to increasing urbanization and industrialization across the world. There is a huge demand for buildings, houses, offices, malls, factories, and other construction projects. Plywood has wide applications in the construction industry as it is used for making walls, floors, doors, furniture, and other elements of buildings. The growth in the construction sector directly increases the demand for plywood.
Wide Range of End-use Applications
Plywood has a wide range of applications across various end-use industries like furniture, packaging, agriculture, automotive, and marine. In the furniture industry, plywood is used to make tables, chairs, shelves, beds, and other furniture items. It is also used in the packaging industry to make crates, boxes, and containers for transportation and storage. In agriculture, plywood is used to make fences, barns, equipment covers. The automotive and marine industries also utilize plywood for parts manufacturing. This wide range of applications across diverse industries drives the demand for plywood in the global market.
Availability of Substitute Materials
One key challenge faced by the plywood market is the availability of substitute materials that can replace plywood in certain applications. Materials like metal, plastic, fibreboard, and engineered wood pose competition to plywood. For example, in the automotive industry, there is a trend of replacing wood with engineered plastics and composites. Likewise, in the packaging sector, plastic crates and containers are gaining preference over wooden ones. The substitutes are often perceived as more durable and moisture-resistant than plywood. This acts as a major restraint for the plywood market.
Volatility in Raw Material Prices
Fluctuations in the prices of key raw materials used in plywood production, such as wood and resin, pose a major challenge for players in this market. The prices of wood depend on factors like seasonal changes, environmental rules, timber supply, and economic conditions. Similarly, resin prices are also influenced by crude oil costs. Unsteady raw material costs increase the price volatility in the plywood market and add an element of unpredictability for both manufacturers and buyers. This volatility in input prices poses restraints over market growth.
Product Innovation and Development
Constant product innovation is a great opportunity to drive the plywood market forward. Companies are investing in R&D to develop new grades, wood types, coatings, designs, sizes, and thicknesses of plywood catering to emerging applications. For instance, marine-grade and fire-resistant plywood have been introduced for specialized end-uses. Likewise, techniques to make plywood more durable, waterproof, and lightweight are expanding its scope of applications. Such continued innovations help open new growth avenues for plywood producers and also attract newer customers from evolving industries.
Growing Online Retail Platforms
The rising popularity of e-commerce and online retail platforms provides substantial opportunities for plywood manufacturers and distributors. Online channels enhance the discoverability and accessibility of these products to both commercial and individual customers across geographies. Major companies are investing in developing their online sales channels and optimizing their product listings on leading e-commerce marketplaces. Customers also find online platforms more convenient for purchase and delivery of bulk plywood orders. This growing shift towards online retail works as a lucrative opportunity for players in the plywood market seeking to expand their customer base.
Link - https://www.coherentmarketinsights.com/market-insight/plywood-market-2212
Key Developments
- In May 2024, Century Plyboards (India) introduced a new product line named Century Cubicles. This launch is part of the company's strategic investment plan aimed at expanding and diversifying its plywood product offerings, reflecting Century Plyboards' commitment to innovation and meeting the evolving needs of the market.
- In February 2024, Kajaria Plywood launched the "Magnificent 7" social media campaign to promote its plywood products. This initiative aims to engage with the target audience across various digital platforms, showcasing the brand's offerings and enhancing its presence in the market.
- In 2023, DUROPLY introduced Techply, India’s first ready-to-use plywood and board product. This innovative offering is designed to simplify the construction and interior design processes, providing a convenient solution for both consumers and professionals. Techply represents a significant advancement in the industry, enhancing efficiency and ease of use.
- In 2023, Greenply partnered with the renowned actor Jr. NTR to launch a new campaign promoting their zero-emission product range. This collaboration aims to highlight Greenply's dedication to sustainability and eco-friendly practices in the plywood industry, while leveraging Jr. NTR's influence to reach a wider audience. The campaign serves as a testament to Greenply's commitment to environmental responsibility and their efforts to raise awareness about sustainable choices in the plywood sector.
- In 2022, Gupta Plywood, a company based in Telangana, India, launched "Speckwud," India's first 15-layer calibrated plywood brand. This innovative product is designed to raise the bar in terms of quality and durability within the plywood industry, catering to the diverse needs of consumers and builders across the country. Speckwud represents a significant advancement in plywood technology, offering enhanced performance and reliability to meet the evolving demands of the market.
Key Players
Century Plyboard (India) Ltd, Atlantic Plywood Corporation, Greenply Industries Ltd., Weyerhaeuser Company, Eksons Corp. Bhd., Roseburg Forest Products Co., Uniply Industries Ltd., Boise Cascade LLC, Ainsworth Lumber Co. Ltd., Georgia-Pacific Corporation, Austal plywoods private limited, Eksons corporation berhad, Latvijas fineries AS, Metas wood, Potlatch Deltic corporation, SVEZA forest, UPM Kymmene Oyj, and Weyerhaeuser company limited
