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). Indian furniture market was valued at $ 17.4 Bn in FY21. It is predicted to reach $ 37.7 billion by 2026, growing at a double-digit CAGR of 13.37% during 2020-2026.
The size of the online furniture retail segment grew from $ 300 Mn in 2017 to $ 920 Mn in 2020 recording a CAGR of 32%. Indian furniture rental industry was estimated at $ 4.1 Bn in 2020 and is forecasted to grow to $ 13 Bn by 2025 at a CAGR of 26%.
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.