Indian plywood demand, like the UK and the United States, is experiencing a surge due to the country’s booming infrastructure projects and a shift in interior design preferences—despite a freefall in total lumber imports.

Vital to construction and furniture making, India’s plywood industry is expected to hit a US $3.8 billion value by the end of 2028-29, with the market expected to grow 6.74% every year for the next five years.

According to the Federation of Timber Merchants and Sawmillers, Indian builders and furniture makers are now turning to plywood (not lumber) to fuel growth in government infrastructure projects and real estate.

With real estate expected to contribute about 13% to India’s GDP by FY25 and reach US $1 trillion by FY30, the momentum gained by the post-pandemic recovery has significantly impacted the demand for plywood.

India is part of the Big 5 for global furniture

As it stands, India is the world’s fifth-largest furniture producer by volume and fourth-largest consumer, with plywood’s domestic consumption expected to reach $32.7 billion by 2026. This is driven by rising disposable incomes and a shift in consumer preferences to affordable yet aesthetically pleasing home decor, making ready-made furniture increasingly popular for its convenience and low maintenance.

It comes as the plywood industry has faced severe challenges during the pandemic, such as an interrupted supply chain and a decline in the construction sector. However, the industry swiftly adopted digital and e-commerce solutions for the new reality.

As a result, it has witnessed a spike in demand for furniture such as tables, laptop desks, and office chairs as working from home and hybrid work models became the norm. The industry saw a strong recovery through 2023, driven by an increase in home furnishing and the revival of the housing market.

By 2047, the world’s most populous country will need to construct around 230 million housing units to meet demand. [This year, India’s population is expected to reach 1.7 billion, with 51% living in urban regions, surpassing the population of mainland China].

Increasing urbanisation significantly contributes to the demand for plywood, which is used extensively in construction and furniture making. A growing trend towards sturdy and durable construction materials, alongside a surge in home renovation projects, fuels the demand for quality plywood.

The rising demand for ready-to-move-in apartments, which typically feature extensive use of plywood in interiors, is a key growth driver. Schemes such as the Pradhan Mantri Awas Yojana—a credit-linked subsidy scheme by the Indian government to facilitate access to affordable housing—are indirectly boosting the plywood market.

Source: Global Wood