India Furniture Market

Booming Demand for Furniture Imports:

The last decade has been very successful for the furniture industry in India. The boom was due to increasing urbanization, a large younger population, rising levels of disposable income and a strong tourism and hospitality industry.

Per capita income is expected to rise by 2.5x from 2016-2027 while consumption will triple to $4 trillion by 2025 as rising affluence drives changes in consumer behaviours and spending patterns.

At the same time, the proportion of nuclear families who spend 30% more than joint families is expected to reach 74% by 2025.

Other than a blip due to Covid, this growth is expected to continue into the future supported by a growing economy, real estate, IT & service sectors and increasing affluence in urban & rural areas.

Exposure to mass media has millions of middle-class Indians aspiring for better lifestyles and furniture-makers catering to their need for stylish homes in compact apartments.

All this has seen imports of furniture growing at a considerable rate driven by the increasing demand from urban households.

Furniture Imports: India imports furniture from over 44 countries around the world with total furniture imports expected to cross $1 billion by FY 2023-24.

Industry Growth: According to the World Bank, India's organised furniture industry is expected to grow 20% p.a.

Residential Furniture Market: Home furniture which comprises 60% of the total furniture market accounts for $20.6 billion (2018) and is expected to grow at 14.1% CAGR over 2018-2023

E-Commerce Market: India’s online furniture market is expanding at a CAGR of 39%. The online furniture market increased from $275 million in CY2019 to $400 million in CY2020. This market is anticipated to increase by 3X over the next five years, with a 1.8X increase in the average annual consumer spending.

India Market Size: In 2022, the furniture market touched $23.12 billion and is expected to reach $37.72 billion by 2026-end growing at 13.37% CAGR from 2020-2026. India is the 4th largest furniture consuming country and 14th largest furniture market in the world.

Shorter Replacement Cycles: Furniture replacement cycle expected to come down to 5-7 years from the current 8-10 years as home renovation/refurbishing cycles have also decreased.

Home Furniture Analysis: In the overall Home Décor category, furniture comprises 40-50%. Larger items like sofa, beds, etc. comprise 25% and the rest are small furniture items like bar tables, coffee tables, chairs, stools, etc.

Sunrise Industry: India’s $2 billion furniture rental industry which is estimated to touch $750-800 billion by 2030.

Work from Home: Work from home coupled with media exposure have opened the Indian mind in furniture designs and the booming work from home furniture market is expected to touch $3.49 billion by 2026.