Overcapacity in laminate manufacturing is continuously eroding the share of value proposition in decorative laminate category. Year 2021 is expected to witness the acceleration in erosion of 0.8 mm laminate market share. A similar trend was visible during 2016-17 when lower version of 0.9 mm began taking share of 1.0 mm laminates. There has been phenomenal capacity addition in HPL manufacturing taking the Indian laminate manufacturing sector capacity by double during last 7 years, leading to which a continuous price pressure has been persistent and growing.
Earlier, the liner laminate range consists with plain and solid colors mainly of white and off-white for balancing purpose of furniture, also known as backer or balancing sheets, became a choice for front uses as well. With more options and very high quality folders even in liner segment, rural markets and furniture makers have begun using liner instead of 0.8 mm. The logic is simple, there is hardly any difference. Presently the trend is limited to few pockets of north and upper north but with the growing aggression and capacity addition in decorative laminates, year 2021 will see more of 0.8 cannibalization by liner sheet folders.
The growth in demand for Liner Laminates indicating the market share being taken by offered solid colors, floral and popular wood grains in .7 thickness. With more desperation coming in due to selling pressure, new liner folders offered by new manufacturers is setting the new definition of laminates trade behavior. By end of 2020, the Liner Laminate product was estimated to have 55 percent pie of total laminate consumed in India. In 2021, the affect for large offerings will be very much visible in market because once shown with a limited 12-15 design range, now Liner laminates shade cards are now laced with 60 - 70 designs, are bound to indirectly provoke masses to adopt cheaper version.
With liner laminate offering wooden series, fabric, high gloss, plain and solid colors and even stone, the proximity to 0.72 or 0.8 mm is expected to hit their share. Being cheaper by Rs 60 to 100, India market is expected to tilt in its favour in 2021 thus hindering the growth of 0.8 mm in coming months. The Ply Reporters’ analysis concludes that liner laminates segment will grow further in 2021 with growing oversupply and new players and will certainly capture some market share of 0.8 mm laminates.