India's Plywood Market Grows 6.71% in FY24, Driven by Engineered Wood Demand and Real Estate Boom

MUMBAI, India - May 28, 2025 - PRLog -- India's plywood industry is undergoing a transformation, with a year-on-year growth of 6.71% in FY 2024 and a CAGR of 6.00% between FY 2019 and FY 2024, according to Makreo Research. Despite ongoing challenges, the sector is gaining traction, propelled by rising real estate activity and growing interest in engineered wood products.

Dominance of Unorganized Players and Growth Potential
India is the 5th-largest furniture producer and 4th-largest consumer globally, yet 70% of its plywood market is unorganized. With just 4% share in global production and only 20% penetration of engineered wood, the sector holds vast growth potential.

Macroeconomic Support Fuels Expansion
India's robust GDP growth—7% in 2024 after 8.2% in 2023—is boosting plywood demand across residential and commercial sectors. Government-led infrastructure and the 2047 middle-income goal add momentum, though income inequality and low female workforce participation hinder inclusive growth.

Trade Trends Reflect Growing Demand
In 2023, India imported USD 190 million worth of plywood (761,447 cubic meters), ranking 24th globally among importers. Meanwhile, exports reached USD 71.6 million (65,493 cubic meters), placing the country 33rd among global exporters. Imports are primarily driven by limited domestic supply in the face of rising consumption.

Timber Supply Challenges Impact Production
Volatility in timber supply, driven by erratic weather, labor shortages, and uneven regional availability, is increasing production uncertainty and costs. These supply-side pressures are impacting the plywood industry's ability to scale and sustain profitability.

Real Estate Drives Demand for Premium Plywood
India's booming real estate market, especially in data centers and luxury housing, is fueling demand for high-grade and designer plywood. Modular furniture and sustainable interior solutions are gaining popularity, with increased focus on fire-retardant and eco-friendly materials.

Looking Ahead: Opportunities and Challenges
While traditional plywood still dominates, the rise of engineered wood products like MDF—expected to comprise 50% of the furniture market by 2030, is reshaping the competitive landscape. Still, the growth of India's middle class, forecasted to reach 715 million by FY2031, offers strong demand prospects for innovative and sustainable wood solutions.

Comprehensive Market Study by Makreo Research
Makreo Research's latest report, India Plywood Market Size and Forecast (2019–2030) (https://www.makreo.com/report/india-plywood-market-size-a...), offers critical insights into:

• Economic and policy drivers
• Regional production and price trends
• Consumer behavior shifts
• Growth opportunities in sustainable and value-added segments

This report is a must-have for manufacturers, investors, and policymakers looking to understand and capitalize on India's evolving plywood market.

Related Reports:
India Plywood Market Competition Assessment Report (https://www.makreo.com/report/india-plywood-market-compet...)