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India Wood Market Size (2024 - 2029)

The market size of the wood industry in India is poised for significant growth over the forecast period, driven by factors such as increased disposable income and consumer spending on home decoration. The expansion of infrastructure and the construction of residential, commercial, and industrial properties further contribute to this growth. The adoption of new technologies, particularly IoT, by furniture manufacturers is expected to enhance design control and performance monitoring, playing a crucial role in the market's development. Despite challenges like high costs and raw material availability, the demand for furniture, especially modular and office furniture, continues to rise, supported by urbanization and changing consumer preferences.

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Market Size of India Wood Industry

India Wood Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 14.77 Billion
Market Size (2029) USD 22.5 Billion
CAGR (2024 - 2029) 8.78 %
Market Concentration Low

Major Players

India Wood Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Wood Market Analysis

The India Wood Market size is estimated at USD 14.77 billion in 2024, and is expected to reach USD 22.5 billion by 2029, growing at a CAGR of 8.78% during the forecast period (2024-2029).

The wood market in India is vital to the country’s economy, which is underpinned by the country's rapid urbanization and economic growth. It consists of a broad range of activities, from logging and sawmilling to the production of finished wood products like furniture and wood-based panels. The industry is segmented into key areas such as sawn timber, plywood, veneers, and wood-based panels like medium-density fiberboard (MDF) and particleboard. Sawn timber is widely used in construction, packaging, and furniture making, while plywood and veneers are essential for home and office interiors.

The growing number of middle class and rising income levels are driving increased demand for both traditional and modern wooden furniture. In addition, wood-based panels are gaining popularity due to their versatility and cost-effectiveness in modular furniture and construction. Overall, the Indian wood industry is poised for continued growth, supported by the expanding real estate sector and evolving consumer preferences.

India Wood Industry Segmentation

The wood market in India refers to the extraction, processing, and production of wood and wood-based products. It consists of activities such as logging, sawmilling, and the manufacturing of products like timber, plywood, veneers, furniture, and wood-based panels. This industry serves various sectors, including construction, furniture making, and interior design, and is driven by factors like urbanization, economic growth, and rising consumer demand for wood products.

The Indian wood market is segmented into type, material, distribution channel, application, and product. By type, the market is segmented into hardwood and softwood. By material, the market is segmented into plywood, laminates, MDF, and other materials. By application, the market is segmented into residential and commercial. By distribution channel, the market is segmented into online and offline. The report offers market size and forecasts in terms of value (USD) for all the above segments.

By Type
Hardwood
Softwood
By Material
Plywood
Laminates
MDF
Other Materials
By Product
Bedroom
Seating
Kitchen
Other Products
By Application
Residential
Commercial
By Distribution Channel
Online
Offline
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India Wood Market Size Summary

The wood industry in India is poised for significant growth, driven by increasing disposable incomes and a rising demand for home decoration. The sector is benefiting from the expansion of infrastructure and the construction of residential, commercial, and industrial properties. The adoption of advanced technologies like IoT by furniture manufacturers is enhancing design control and performance monitoring, contributing to the market's development. As India stands as the third-largest wood exporter globally, the domestic demand for wood is substantial, with a significant portion being met through imports. The furniture industry is experiencing rapid growth, fueled by urbanization and a preference for modern, modular, and durable furniture. The pandemic has further accelerated the demand for office furniture, prompting manufacturers to innovate with multifunctional designs to address challenges like high costs and raw material shortages.

The residential sector is a major driver of demand for wooden furniture, with increasing interest in using wood for various home applications such as wardrobes and living room furniture. The growth of the residential real estate market, spurred by population increases and the need for affordable housing, is expected to further boost the demand for wooden furniture. The rise of e-commerce and online furniture sales is transforming the market, with increased internet penetration and demand from tier 2 and tier 3 cities contributing to this trend. The competitive landscape of the Indian wood furniture market is characterized by numerous small and local manufacturers, with significant opportunities for innovation and collaboration with international partners. Leading companies like Century Plyboards India Ltd., Godrej Interio, and Ikea India Pvt Ltd. are actively participating in this dynamic market, focusing on sustainability and safety innovations to enhance their offerings.

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India Wood Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increased Consumer Spending on Residential Furniture

      2. 1.1.2 Growth in Online Retail Platforms Makes Wood Furniture More Accessible to Consumers

    2. 1.2 Market Restraints

      1. 1.2.1 The Cost of Sourcing and Processing Eco-Friendly Materials Can Be Higher, Affecting Pricing Competitiveness

      2. 1.2.2 Regulatory Compliance

    3. 1.3 Market Opportunities

      1. 1.3.1 Rapid Urbanization and Real Estate Development Create a Steady Demand for Wood in Construction and Home Furnishings

    4. 1.4 Insights into Export and Import of Wooden Furniture

    5. 1.5 Insights into Current Trends and Technological Innovations in the Market

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights into Various Regulatory Trends Shaping the Market

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hardwood

      2. 2.1.2 Softwood

    2. 2.2 By Material

      1. 2.2.1 Plywood

      2. 2.2.2 Laminates

      3. 2.2.3 MDF

      4. 2.2.4 Other Materials

    3. 2.3 By Product

      1. 2.3.1 Bedroom

      2. 2.3.2 Seating

      3. 2.3.3 Kitchen

      4. 2.3.4 Other Products

    4. 2.4 By Application

      1. 2.4.1 Residential

      2. 2.4.2 Commercial

    5. 2.5 By Distribution Channel

      1. 2.5.1 Online

      2. 2.5.2 Offline

India Wood Market Size FAQs

The India Wood Market size is expected to reach USD 14.77 billion in 2024 and grow at a CAGR of 8.78% to reach USD 22.5 billion by 2029.

In 2024, the India Wood Market size is expected to reach USD 14.77 billion.

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