Furniture

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:

1. There will be a 2.5x Increase in income per capita from 2016 to 2027
2. 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
3. Growing Expenditure: consumption expenditures will rise by a factor of three to reach 4 trillion by 2025
4. 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.
5. 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.