INTRODUCTION

The market for bamboo and bamboo products is growing and over the past years has been spearheaded by a rapid increase in bamboo production and/or trade coming out of China and other parts of Asia, Africa, Eastern Europe, Middle East and Latin America. Evidence exists that under the right conditions bamboo can be a leading sector for rural industrialization and large-scale poverty reduction. Technical innovations in processing, particularly standardization and product innovation have enabled bamboo products to compete in mainstream wood-product markets such as laminated flooring, composite boards and paper and pulp. Other promising bamboo products do not compete in the timber products markets, such as bamboo shoots and bamboo handicrafts, and these sub-sectors are subject to unique factors affecting growth. It is estimated that the current value of global trade in bamboo products is worth 7bn USD, and is expected to rise at 17bn USD by 2017 assuming mid-level growth. The current market size as against the projected market size by 2017 for some of the products would be as follows . In view of the global market trends in bamboo usage coupled with the fact that India has the largest recorded bamboo resources globally; the need to prioritize this sector is of great significance. In India, 13.47 million tons of bamboo is harvested annually of which 11.7 million tons is utilised industrially in paper mills, as scaffolding or fencing, for internal consumption in bamboo-growing households, handicrafts and miscellaneous items like incense-sticks, ladders, ice-cream sticks, agricultural implements, etc. But no reliable estimates of quantities are available for any of these items. Due to the abundance of the natural product, small holders harvest the bamboo from the edges of their farms and their surroundings; there is negligible large-scale commercial cultivation of bamboo in India. The annual market for value added bamboo in India is estimated at approx. 1.0bn USD in 2004 which is expected to grow up to 5.8bn USD by 2015. To achieve this there is a need for consistent supply of processed bamboo, development of industry, channeling of raw material into manufacturing system and an assurance of steady market . Trade regulations for bamboo are usually the same as those for wood both at international and regional levels. Despite bamboo’s inherent advantages for livelihood and environmental sustainability, only China, India and Vietnam, have favorable policies towards bamboo at present. Further, the customs codes that are used for the collection of trade statistics do not specifically define bamboo products within their categories and it is necessary to interpolate to derive best guess estimates. INBAR has however produced a new series of codes that will be implemented by the World Customs Organization from 2007–8, and this should enable more accurate understanding of the trade. 

OVERVIEW

The world bamboo market is currently worth USD 7 Billion/year, of which China has USD 5.5 Billion. The largest markets are handicraft (USD 3 Billion), bamboo shoots (USD 1.5 Billion) and traditional furniture (USD 1.1 Billion). Traditional markets cover handicrafts, blinds, bamboo shoots, chopsticks and traditional bamboo furniture, which count for 95% of the market. Emerging bamboo markets are wood substitutes such as flooring, panels and non-traditional furniture. The growth of the global market is expected to grow to USD 15-20 Billion/year in 2017. Non-traditional markets are expected to claim 45% of the total bamboo market. 

 CURRENT SIZE OF SELECTED MARKETS

The world bamboo market is currently worth USD 7 Billion/year, of which China has USD 5.5 Billion. The largest markets are handicraft (USD 3 Billion), bamboo shoots (USD 1.5 Billion), traditional furniture (USD 1.1 Billion); the remainder consists of window blinds, chopsticks, panels, charcoal etc. In 1992, France, Germany and the Netherlands were the major markets for bamboo, collectively accounting for 53% of the world’s total imports (NAFRI, NUoL, SNV. 2007). Traditional markets cover handicrafts, blinds, bamboo shoots, chopsticks and traditional bamboo furniture, which count for 95% of the market to date. New market products include modern/laminated furniture, flooring and panels cover the remainder 5% of the bamboo sector.

FUTURE MARKET SIZES

Emerging bamboo markets, particularly wood substitutes, have been pioneered by Asian producers and include flooring, panels and non-traditional furniture. These represent the largest growth opportunities for bamboo. Strong world (and Chinese) demand and Chinese’s productive capacity and exports have produced a structural change in the wood industries. Increased restrictions of certified timber supply, growing environmental awareness, and competitiveness in lower-cost countries create a positive market outlook for bamboo. As there is still a high degree of uncertainty over bamboo market growth, especially in new markets, two bamboo market scenarios are presented in Figure 9 below, Figure 9: Global Bamboo Scenarios (Source: OHK, 2006) World Bamboo Market Scenario 1: Existing market – zero growth scenario (Worst case), based on current market size only assuming zero growth in global markets or bamboo penetration. It is believed that this scenario is unlikely to occur due to the current dynamic expansion of the sector. World Bamboo Market Scenario 2: Mid-level future scenario, based on the prevailing forecasts for ‘global market’ growth and the mid–level scenario for bamboo penetration growth). The growth of the global market is expected to grow to USD 15-20 Billion/year in 2017. Of this it is expected that traditional products will grow, but not as fast as the non-traditional market which will expect to claim 45% of the total bamboo market. 

MARKET ATTRACTIVENESS

The market attractiveness of each industry is not only dependent on the size of the market, but also how accessible the market is and how profitable it may be for producers. For the current purposes, accessibility is a measure of how easily bamboo products can penetrate into their ‘global markets’. Accessibility is the result of a combination of factors including: price/performance competitiveness, trade conditions, standards and regulations and buyer attitudes. For each of the selected markets, we have used qualitative information and industry feedback to assess the ‘ease of access’ and indicative ‘profitability’. In combination with estimates of market size, this provides an initial assessment of the demand side attractiveness of the different markets, as illustrated below. 

INDUSTRY OUTLOOK

There are significant macro-economic changes driving the wood-based markets at present: • Strong worldwide demand for materials alongside an established and growing environmental awareness is forcing changes in the way wood based products are produced and marketed. • Production and exports in China are changing the business context for US and European suppliers who are forced to either build their own factories in lower-cost countries or go out of business. • A global shortage of certified renewable wood and shortage of all wood kinds in Asia is opening up opportunities for substitute products i.e. bamboo. • Growth in interest in sources of environmentally friendly energy such as biomass will have an effect on wood-based industries and potentially bamboo. Key issues expressed in interviews with industry participants from a range of bamboo / wood related industries included: Macro-level issues • Rise in demand for certified timber products and chain of custody documentation • Shortage of certified timber products and chain of custody documentation • Biggest issue apart from sourcing wood remains quality assurance Perceptions of bamboo • General positive disposition towards bamboo as material, if some reservations about “the hype” • Perception of bamboo as a suitable product for use in furniture and flooring but not construction based products in export markets • Perception of bamboo as uncompetitive for use in wood panels, especially in high income economies.

Source: Mayank, M (2008) Techno-Economic Feasibility Study for Setting up Bamboo SMEs, NMBA, India

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