The Indian furniture market is expected to witness strong growth during the forecast period. The country’s furniture market is expected to grow at a rapid pace due to the rising disposable incomes, the burgeoning middle class, and the growing number of urban households.

In addition, the projected increase in the tourism and hospitality sectors is also expected to spur the demand for furniture in the country through 2019. The western and southern regions may continue to be the leading revenue generators due to developments.

Furthermore, the western and southern regions are likely to continue to be the leading revenue generators due to the expanding distribution network of furniture manufacturers in these regions. Uttar Pradesh, Kerala, Punjab, West Bengal, and Andhra Pradesh are the major suppliers of wood, which is the most widely used raw material in the country’s furniture market.

With growing employment opportunities, the purchasing power of Indian consumers is increasing, which is consequently expected to continue and boost the demand for the designer as well as standardized furniture in the country in the forecast period.

Key Market Trends

Wooden Furniture to Dominate the Indian Furniture Market

Wood accounts for nearly 65% of all furniture made in India. This includes several types of indigenous wood, as well as imported wood. India imports wood from various Southeast Asian countries, such as Indonesia, Myanmar, and Malaysia.

The popularity of traditional furniture has strengthened the demand for wood in the manufacturing of furniture in India. Over the past few years, the utilization of wooden goods at the home has increased as people have started using wood for furnishing cupboards, decorating, and for other purposes. Apart from this, the demand for engineered wood furniture is rising in metro cities, such as Delhi, Mumbai, Bangalore, and other major cities. The reason behind this is the rising popularity of ready-to-assemble home furniture in these cities. The availability of engineered wood furniture through various distribution channels provides an ease to the customer to buy furniture products.

Home furniture market is expected to witness fastest growth in the anticipated period

The home furniture is the largest segment in the Indian furniture market, accounting for a major share of furniture sales. This is followed by the office furniture segment, the contract segment, and other segments.

Home furniture in India is available in a wide range to suit different customer needs. Approximately 25% of the urban population live in homes with five or more rooms, while 45% live in houses with three or fewer rooms, which is expected to boost the demand for home furniture products. Furthermore, the development in the housing sector and the rapid growth of metro cities are changing the living standards and lifestyle of the population, and are further propelling the need to purchase new furniture products.

Competitive Landscape

The Indian furniture market is highly competitive and fragmented in nature. Furthermore, there are a few numbers of market players in the furniture industry, compared to the unorganized market players. The big players include Godrej, Zuari, Durian, Nilkamal, and Featherlite, who have a good market presence in the furniture industry in India. However, several new players are expected to enter this market due to low entry barriers.

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