The PVC edge band market has been noted to be slow for the last 4 months. The report indicates that the manufacturers are unable to gain capacity utilization, and there is an estimation of a 20% drop in its utilization. Industry sources say that in the last six months, there was a huge capacity addition in this segment after a spike in the ready-made furniture industry.
The increased construction activity and technological improvements were adding to the furniture industry’s rapid growth and providing several prospects for edge banding, too. However, as capacity is added, the availability of goods in the market increases resulting in oversupply in comparison to consumption, upsetting the supply-demand equilibrium. This is also one of the reasons for the drop in demand.
The traders and manufacturers say that the competition has risen, and imports are also coming, which is affecting domestic manufacturing and sales, and consequently the margin has also dropped. The growing supply of "Made in India" edge bands, as well as increased awareness among carpenters, etc., had aided the market's growth. However, slow market movement in the modular furniture manufacturing industry has affected PVC edge band demand in the last 4 month along with its production.
According to industry sources, once freight costs were reduced, PVC products began to reappear, particularly from China, and are finding their place in the economical grade market. The penetration of 0.4 mm of material is once again coming up in huge quantities. The options and varieties in edge bands with laminate colours that match are still helping the market expand, but the players are upbeat about grabbing the market, and the competition has reached the next level. The product has reached the rural market as well, which is driving the demand.
Although industry participants claim that this is a temporary slowdown, demand for edge bands has always been strong and growing. The encouraging news is that many Indian companies are now trying to manufacture the raw materials for our industry. There are nearly 100 edge band manufacturers and importers in India. The PVC edge band market is estimated to reach approximately Rs 2,000 crore by 2025. The manufacturers say that today B-towns and C-towns are also having demand, and it is increasing by 200% per year, which is helping the industry.