The Indian furniture market has done exceptionally well throughout the pandemic, and is expected to grow steeply by 2023. Here’s a closer look
With a population of 1. 3 billion, India is one of the largest economies in the world that has witnessed remarkable development in recent years. This has, of course, led to an increase in the number of private and commercial establishments across the nation. Furniture holds an important place in homes, offices, schools, institutes and places of entertainment and worship. Practically every establishment requires adequate furniture to run their daily businesses. This increases the demand for furniture and its fittings of various kinds. With a greater number of users looking for furniture that suits their needs, the custom design market in India is flourishing. The Indian furniture market is thus anticipated to reach USD 61. 09 billion by the end of 2023.
Even though the furniture sector in India makes a marginal con- tribution to the Gross Domestic Product (GDP), with a major part of this industry—approximately 85 per cent—in the unorganised sector, the anticipated growth is considerable, thanks to the Make in India movement.
As per a report by an Indian foundation, the global furniture market can be broadly categorised into four seg- ments—domestic furniture, office/corporate furniture, hotel furniture and furniture parts.
Globally, domestic furniture accounts for 65 per cent of the production value, whilst corporate/office furniture represents 15 per cent, hotel furniture 15 per cent, and furniture parts five per cent.
Interior designer Suraj Bhatia shares, “Indian houses love their furniture and spend over three-fourth of their home design budget in the furniture segment, which is usually customised as per their needs. Today’s new trends focus on going back to the Mughal era, and uses intricate, handcrafted wooden furniture. This gives the Indian furniture market and manufacturers a boost, which is in keeping with the Make in India agenda. This also means that less furniture is being imported from other countries. ”
Furthermore, according to a study conducted by an international financial institu- tion, the organised furniture industry is expected to grow by 20 per cent every year. As with the global market, home furniture is the largest segment in the Indian furniture market, accounting for about 65 per cent of furniture sales. This is followed by the office furniture segment with a 20 per cent share and the contract segment, accounting for the remaining 15 per cent.
Elaborating on the factors that will boost furniture manufacturing and sales in India, Siddhi Shah, a furniture designer, says, “Increasing disposable income, rapid urbanisation and an expanding retail and distribution network will drive the furniture market in India during the next five years. Also, the anticipated rise in tourism and hospitality sectors will spur the furniture demand in the country through the next decade. This gives Indian artisans and manufacturers a great chance to set up new businesses and expand existing ones in India with support from the government and its business policies. ”
Today, in the era of digital transformation, just like most of the other industries, the Indian furniture industry is also going online. It is not only making a consumer’s shopping experience easier, but also is expected to boost the industry’s growth prospects in the coming years.
Looking Ahead
The Indian furniture market is anticipated to grow at a CAGR of 13. 38 per cent during the period of 20182023. A report predicts that the Indian furniture market will grow beyond USD 27 billion by 2022, representing a huge opportunity for furniture exporters.
Source: timesproperty.com
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