The growth in decorative veneers demand carry an individual perception that varies company to company or dealer to dealer. Though the growth story in decorative wood veneers continue to head up even amidst multiple policy introductions and turbulent implementations. Despite of slow markets, decorative veneers remain a favourite material for home upgrades indicated the survey done by BSMR among retailers, showroom owners and decorative veneer manufacturers.
During 2017 the decorative veneer demand remained flat but during November and December months a renewed interest was evident among showroom makers. The decorative veneers production is also stable or can be said that it is growing steadily at 5 to 6% in natural and teak segments. Year 2018 is expected to be on the same lines of growth also because retailers earn well on selling decorative veneers and the upper middle and elite class customers are growing year on year.
Rising affluence is the biggest driver behind increasing consumption. As per BCG Analysis, of India’s five household income categories (elite, affluent, aspirers, next billion, and strugglers), the top two income classes are the fastest growing. From 2016 through 2025, the share of elite and affluent households will increase from 8% to 16% of the total while the share of strugglers will drop from 31% to 18%.
Reading other few research reports, the ply reporter is optimistic on better performance in decorative veneer segment due to rise in spending from elite and affluent class and wanna upgrade consumers. The wealthy urbanites are increasingly hiring designers for the choice of better interiors and bigger spaces which will provide a stable demand for decorative veneers.