American Softwoods travelled to IndiaWood 2024 from February 22-27 in Bangalore, India, for the 10th time, with 12 representatives, including nine Southern Forest Products Association members, representing nine companies.
These representatives, which included members from the Softwood Export Council and APA The Engineered Wood Association, not only promoted American softwood products to the Indian market but acquired more knowledge of the Indian market for softwood lumber exports and continued to establish relationships with leading Indian lumber importers.
IndiaWood 2024 Experience
IndiaWood 2024, which alternates between Bengaluru and New Delhi, appears to have been a successful show based on the number and quality of inquiries received. Booth visitors seemed to be genuine buyers as opposed to window shoppers. The American Softwoods booth collected 138 trade leads while educating booth visitors on softwood species, grades, and sizes. Worth noting was that the American Softwoods booth was built using Southern Pine, which was a useful demonstration of the wood and its uses.
AMSO had a full-page ad on the back page of Timber Design and Development Magazine, which was distributed at the show.
Also noteworthy at the trade show venue and encouraging in terms of a new focus in India on valued added wood products (including structural and construction applications) and sustainability were two conferences:
- a half-day conference on Dialogues With Wood Industries for Sustainability on February 22; and
- a full-day conference on Wood In Architecture and Design on February 24.
AMSO’s goal continues to be promoting higher quality and higher margin grades. This strategy will require a sustained educational effort, particularly by way of seminars in key areas such as Delhi, Mumbai, Hyderabad, Chennai, Bangalore, and Kochi.
Early conversations with trade associations in India, such as the Calcutta Timber Association, suggest great interest in a seminar program. They imagined their event would guarantee about 90 attendees, all of whom would be interested in learning more about American softwoods, including their use and application.
Finally, the Southern Forest Products Association team will be attending an FAS trade mission to New Delhi in April. Further conversations with potential buyers during this time will help cement a strategy for growth in this emerging market.
Southern Pine, Softwoods in India
India offers great potential for American softwoods. In 2023 the population of India exceeded China by 16 million people with just more than 1.44 billion. The world’s most populous nation also boasts a fast-growing economy, with GDP growing at 8.4% in the final quarter of 2023.
In 2024, the IMF projects the economy will grow by 6.5% in the fiscal year starting April 1. Sustained economic expansion is expected to push India up the rankings of the world’s biggest economies. Analysts at Jefferies expect the country to become the world’s third-largest economy by 2027, up from fifth.
In December 2023, India’s retail inflation rate stood at 5.69% remaining within the Reserve Bank of India (RBI) tolerance band, which is set at 2-6%.
According to real estate consultancy Knight Frank, the number of ultra-rich Indians with a net worth of at least $30 million will rise 50% over the next four years to 2028, the biggest increase globally. Finally, a growing and highly aspirational middle class estimated to number 300 million is keen to consume foreign goods of all kinds, especially goods associated with the home.
The substantial increase in wood consumption in India is exacerbating an existing shortfall between domestic wood production and the country’s reliance on wood imports, according to an ITTO report published in 2021 on India Timber Supply and Demand 2010-2030. The report shows that although India’s forest cover has increased steadily for nearly two decades, timber production is still less than consumption and an increasingly large proportion of demand is being met by imports presenting an opportunity for American softwoods.
India has a thriving range of industries for semi-processed and value-added timber products, including wooden handicrafts, pulp and paper, plywood, veneer, and wooden furniture.
Sales of American sawn softwoods to India were $26.2 million in 2023 (a five-year high), up 113% from $12.3 million in 2022. Log sales fell to $38.2 million in 2023 from $46 million, which many consider good news as it is an early sign of market maturity as more buyers opt for a superior treated product, softwood lumber.
India’s total of Southern Pine imports ended up 312% on 31.2 Mbf of Southern Pine and treated lumber.
Substantial growth in demand for wood products is further driven by a government initiative to have housing for all and to develop 100 smart cities, according to Dr. C.N. Pandey, who presented during IndiaWood 2024. Anecdotal conversations from buyers at the show indicate the market for doors in the expanding housing market are also driving sales.
Neighboring Pakistan is showing a 12% decrease in exports over the year worth $11.5 million. Despite a shortage of foreign currency in Pakistan, this shows a credible commitment to American softwoods with funds being directed via Dubai. Total sales of lumber and logs to India and Pakistan in 2023 hit a record $80.5 million. As a benchmark, sales to Europe were $30.6 million, showing the Indian subcontinent is an important and growing market for American softwoods.
SFPA members: Don’t forget to check out the contacts secured during the show and their corresponding contact information on our members-only site!
