The India furniture market by commercial sector is anticipated to achieve a CAGR of 11.97% during the forecast period i.e. 2018-2023. The commercial sector is further sub-segmented into non contracting and contracting. The demand for furniture has been observed to majorly generate from northern and southern India. India is the fifth largest furniture producer at a global level and the fourth largest consumer of furniture. India is also cost competitive in cotton fabric (textiles). The total rental furniture and appliances market in India reached INR 33,500 crores during FY21.
The market is expected to garner $61.09 bn by the end of 2023. Further, the Indian furniture market is anticipated to achieve a Y-o-Y growth rate of 14.30% in 2023 as compared to the previous year. The domestic Indian furniture market is anticipated to grow at a CAGR of 13% in the next four years and 11.97% during the forecast period i.e. 2018-2023.
The demand of furniture has been observed to majorly generate from northern and southern India. Other factors contributing to the growth of the furniture market in India are:
- There will be a 2.5x Increase in income per capita from 2016 to 2027
- The rate of growth of wages is significantly lower and the rate of growth of productivity is relatively higher compared to other low-cost countries like China, Vietnam and Thailand
- Growing Expenditure: consumption expenditures will rise by a factor of three to reach 4 trillion by 2025
- Continued Urbanisation: 40% of India’s population will be living in urban areas by 2025 up from 31% in 2010, and will account for more than 60% of consumption.
- Changing Family Structures: The proportion of nuclear households has reached 70% and is projected to increase to 74% by 2025. They spend 30% more per capita than joint families.