With the tightening of the product portfolio and growing competition in the laminate sector the Ply Reporter fourth prediction for 23 is in decorative laminate sector. With around 300 players already operating in laminate manufacturing and 20 new players getting ready to enter, year 23 won’t be that easy for laminate players. Year 2022 witnessed a sharp rise in market demand for decorative laminates within India as well as in international markets. It led to heating up of laminate manufacturing followed by many capacity additions by almost all existing brands and sizable manufacturers.
The surplus capacities got absorbed partially in laminate segment but entry of many regional factories and readiness of many existing laminate players to capture the larger pie will unleash an intense competition in this product category predicts The Ply Reporter.
The supplies in 0.8 mm and liner sheets are now going overboard with almost no significant difference in designs with each other is bringing the gap very close. The Ply Reporter foresees intense competition in laminate selling from companies as well as distributions side which will bring down margin per sheet.
As talks of recession and payment slowdown grow, the impact on laminate stocks at distribution points may create sales desperation among producers in year 23. With concern on weak demand in international markets, the focus of export driven players will also add up to competition in domestic markets.
With increasing domestic manufacturing capacities in Nepal, slowdown in surrounding markets including China, Sri Lanka and Bangladesh, the dependency on Indian consumption will be higher, which may push the level of competition too intense in 2023 in India.