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American Softwoods Upbeat on Growing Demand in India

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American Softwoods (AMSO), the promotional partnership formed by three major U.S. softwood trade associations, will participate at MumbaiWood from October 12 - 14, 2017 aiming to increasing awareness of American softwoods in India. Representatives from AMSO as well as members including Coast Clear Wood, West Fraser, CLC Hardwoods and Jazz Forest Products will be on hand to talk about the wide variety and availability of American softwoods. AMSO’s participation at the fair is part of its ongoing campaign to increase awareness on the key benefits and advantages to be gained from using American softwoods across India in construction, interior fit-out projects and in furniture design and manufacturing.

“According to WoodStat, total imports of softwood lumber to India reached 252,000 cubic meters for the first six months of last year. Further, amongst India’s main trading partners in North America and Europe, Germany was the dominant market player, with a share equal to almost 70 percent. Despite total imports of softwood lumber remaining at levels similar to the previous year, the long-term potential for American softwood exports to India are very positive. Traditionally a tropical hardwood market, log export restrictions in Myanmar, Malaysia, and other tropical countries have meant that Indian manufacturers have been forced to look for alternate wood supply sources. As a result, we have seen a transition from imported tropical hardwoods to softwoods, and from logs to lumber,” said Charles Trevor, Consultant to American Softwoods.

A study by the World Bank showed that India’s organized furniture industry is expected to grow at 20 percent per annum over the next few years and is projected
to cross USD 32 billion by 2019. The online home décor market in India is projected to grow at a compound annual growth rate (CAGR) of 50.42 percent in revenue from 2014 - 2019 whilst the luxury furniture market is expected to garner USD 27.01 billion by 2020, registering a CAGR of 4.1 percent during the forecast period 2015-2020. Foreign domestic investment in the Indian real estate sector and the government’s Housing-for-All by 2022 initiative and the development of 100 smart cities to accommodate India’s growing urban population are also some of the growth drivers for revival of the real estate and construction sector. All of these are positive signs for the future of American softwoods in India.

“As was the case with China, India is expected to continue to develop over the next decade with the government investing into infrastructure and development in major cities and areas. Given that domestic production of lumber and logs cannot satisfy the growing demand, this represents a growing opportunity for American softwoods. Our participation at Mumbai Wood allows us direct interaction with construction industry professionals, furniture designers and makers, architects and interior designers. As such, we hope to share information on the wide array of American softwood species and their significant potential for a range of applications,” concluded Trevor.

 

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