The decorative laminate industry is set to embrace a tough 24 as the number of plants and regional presence of new laminate manufacturing companies will certainly be posing a competitive scene. The Ply Reporter foresees a slow growth phase for laminates in the domestic market as retailers’ interest for more value-added items is seen growing.
It is expected that Decorative laminate market space will witness a crowded push and turn into a buyers’ market leaving little room for ignorance and ‘Chalta hai’ attitude among lam producers. The design exclusivity charm is fast loosing its grip hence the year 2024 will be marked as a tough competitive year in the HPL industry. As observed the decorative laminate market has witnessed a drop in prices over the past few months. The last few weeks have seen a correction of 6-8 % in liner grade largely due to oversupply.
With the tightening of the product portfolio and growing competition in the laminate sector, followed by large capacity additions by almost all existing brands and sizable manufacturers; the surplus capacities were partially absorbed in the laminate segment. The entry of many regional factories and the readiness of many existing laminate players to capture the larger pie will unleash intense competition in this product category, predicts The Ply Reporter.
As talks of recession and payment slowdown, the impact on laminate stocks at distribution points may create sales desperation among producers in year’24. This could result in an intensified level of competition in India in 2024, providing regional players with the opportunity to expand their market presence.