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India Particle Board Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • ID: 4703480
  • Report
  • December 2021
  • Region: India
  • 80 Pages
  • Mordor Intelligence


  • Action TESA
  • Archidply Decor Ltd
  • Associate Decor Ltd
  • CenturyPly
  • DMK Particleboard LLP
  • Peacockmy

India Particle Board Market was at USD 400 million in 2020 and is expected to grow at a CAGR of over 12% by 2026.

The impact of COVID-19 on the furniture industry was severe. During January 2020 - September 2020, the gross absorption of commercial office fell by 46% year on year to 22.5 million sq. ft due to prolonged lockdown in the country impacting the furniture market in the commercial sector. Construction work in the country has come to a standstill due to the nationwide lockdown to combat the COVID-19 pandemic kicking in, triggering concerns that the companies would see revenues being hurt and may even incur losses in some projects. The country-wide lockdown imposed by the government to check the spread of coronavirus has resulted in construction companies announcing a shutdown of operations. This is likely to delay the implementation of projects, leading to cost overruns and impacts on the workforce. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market studied.

Key Highlights

  • In the long term, a major factor driving the market studied is the increasing demand for furniture in the office space and hospitality sectors. International hotels are expanding their presence in the country and are likely to account for around 47% of the Indian tourism and hospitality sector.
  • Increasing usage of medium-density fiberboard as a substitute to particle board can hinder market growth in the country.
  • In the raw material segment, wood dominated the market in 2020 and is expected to grow during the forecast period.
  • Upcoming construction and infrastructure projects in the country are likely to act as an opportunity in the future.

Key Market Trends

Increasing Demand for Furniture from the Office Space and Hospitality Sectors

  • Particleboards are widely used to manufacture furniture that finds applications in office spaces, hotels, restaurants, cafes, and lodging spaces. Moreover, these products are used to produce shelving structures, storage containers, and flooring products that can be used in office and hospitality structures.
  • These engineered wood products are made from sawdust and wood flakes, thus, possessing a lightweight characteristic. Furthermore, the relatively low cost of particle boards as compared to other wood-based panels is propelling its demand in furniture manufacturing.
  • As per the reports by Savills India, a real estate agency, office space leasing in the country is likely to grow by 22% in 2021. This is supported by positive government reforms and ascending economic activities across the country. The total office space occupancy is anticipated to reach 41.3 million square feet by the end of 2021.
  • A sharp spike has been witnessed in office leasing occupancy, with over 12.5 million square feet in July to September of 2021, supported by the economy coming back to normalcy and corporate workforces slowly returning to work from the office, especially in the IT sector.
  • Bangalore is likely to lead the office leasing segment with an estimated absorption of 14 million square feet by year-end as the confidence among corporate occupiers in the city continues to remain strong.
  • As per the India Tourism Statistics, India has been witnessing an ascending trend in foreign tourist arrivals (FTAs) during the period of 2016-2019. However, the trend dropped by over 64% in 2020, owing to international travel restrictions to curb the spread of COVID-19. The FTAs for 2016, 2017, 2018, and 2019 recorded in millions were 15.03, 16.81, 17.42, and 17.91, respectively
  • An increase in the demand from the office space and hospitality sector projects, coupled with several government initiatives and investments, is likely to boost the furniture market’s growth significantly.

Furniture Segment has Dominated the Market

  • India is a growing economy and holds great potential for future market opportunities. The country witnessed a decline in its GDP growth rate to around 5% in 2019, from 7.1% in 2018. The stagnation caused by industrial output, greenfield investment, and flattened demand has led to a decline in the country's growth rate.
  • The outbreak of COVID-19 has further affected the domestic construction and manufacturing industries in early 2020. This is expected to continue in 2020, which, in turn, is expected to witness a decline in the consumption of particleboards in the country. India's economy has contracted by 7.3% in 2020. However, the GDP is expected to reach 9.5% in 2021.
  • 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 compared to plain particle boards.
  • Investments by ITC’s Hotel Group to start new hotels by 2022 in Gujrat, Jammu & Kashmir, Odisha, Himachal Pradesh, Andhra Pradesh, and Punjab are projected to 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 is expected to boost the construction of hotels and lodging spaces in the nearby area, 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 studied. This project will include office spaces for insurance, banking, IT, and other sectors. The project is anticipated to be complete by 2024.
  • The aforementioned factors have positively impacted the demand for furniture in residential houses and offices in the country, driving the demand for particle boards during the forecast period.

Competitive Landscape

The Indian particle board market is partially consolidated in nature, due to the presence of different players in different states. The major part of the market is highly unorganized. The major companies include Shirdi Industries Ltd, Associate Décor Ltd, Centuryply, Krifor Industries Pvt. Ltd, and Archidply Decor Ltd, among others.

Additional Benefits:

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

This product will be delivered within 2 business days.
Note: Product cover images may vary from those shown


  • Action TESA
  • Archidply Decor Ltd
  • Associate Decor Ltd
  • CenturyPly
  • DMK Particleboard LLP
  • Peacockmy

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Increasing Demand for Furniture in the Office Space and Hospitality Sectors
4.2 Restraints
4.2.1 Threat of Medium Density Fiberboard (MDF) as a Substitute
4.2.2 Unfavorable Conditions Arising Due to the Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Trade Analysis
4.6 Production Capacities (by Manufacturers)
5.1 Raw Material
5.1.1 Wood Sawdust Shavings Flakes Chips
5.1.2 Bagasse
5.1.3 Other Raw Materials
5.2 Application
5.2.1 Construction
5.2.2 Furniture
5.2.3 Infrastructure
5.2.4 Other Applications
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Archidply Decor Ltd
6.4.2 Asian Prelam Industries Pvt. Ltd
6.4.3 Associate Decor Ltd
6.4.4 Bajaj Hindusthan Sugar Ltd
6.4.5 CenturyPly
6.4.6 DMK Particleboard LLP
6.4.7 EverGreen Boardlam Pvt. Ltd
6.4.8 Krifor Industries Pvt. Ltd
6.4.9 Peacockmy
6.4.10 Positive Chip Boards
6.4.11 Shirdi Industries Ltd. (ASIS India)
6.4.12 Action TESA
7.1 Upcoming Construction and Infrastructure Projects
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Archidply Decor Ltd
  • Asian Prelam Industries Pvt. Ltd
  • Associate Decor Ltd
  • Bajaj Hindusthan Sugar Ltd
  • CenturyPly
  • DMK Particleboard LLP
  • EverGreen Boardlam Pvt. Ltd
  • Krifor Industries Pvt. Ltd
  • Peacockmy
  • Positive Chip Boards
  • Shirdi Industries Ltd. (ASIS India)
  • Action TESA
Note: Product cover images may vary from those shown