India Furniture Market | Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Furniture Market | Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India is known for its unique and exceptional furniture design. Because of its rich handcraft and appealing traditional art and style, the Indian furniture business is well-known both in India and beyond. Over time, the Indian furniture market has changed. Its market has expanded beyond chairs and tables to include designed interiors, such as wardrobes and sofas. For generations, furniture has been an important element of Indian households. The growing middle-class population, rising disposable income, and the growing number of urban homes all contribute to the expansion of the Indian furniture market. The furniture market in India is dominated by small unorganized local firms. However, organized players have increased their contribution to the Indian furniture sector during the previous decade. With the advent of multinational furniture companies, like IKEA, into India, the organized players' market share would expand even more.

The rising desire for modular and state-of-the-art furniture among the people living in urban areas, growing urbanization in Indian states, and rising need for durable and hybrid seating furniture are all driving the growth of the Indian furniture industry. Furthermore, the Indian expanding wood sector helps to offset the cost of furniture. The furniture industry in India is predicted to grow as a result of these causes. Furthermore, India's growing trend of online and mobile shopping is expected to boost demand for furniture via online channels. nThe growth of the Indian furniture market is also driven by the tourism and hospitality industry and the corporate sector. The increasing number of hotels and business offices further spur the demand for furniture in the country.

With the onset of pandemic, the booming sector of furniture was heavily impacted due to the restriction and lockdown in the initial period. The manufacturing index also showed drastically declined number for the month of March, April and May of 2020. The furniture industry bounced back with the rise in work or study from furniture in later half of 2020. nPandemic has also resulted need for the privacy and personalized space within the house that were required for the work from home or study from home, which resulted in increase in demand for WFH furniture.

The expansion of the Indian economy has also boosted the demand for real estate and commercial buildings in the country. While residential building accounts for most of the real estate in India, commercial construction has increased to meet the growing need for office space. Because of the growing population and desire for cheap housing, the Indian residential real estate industry has been experiencing expansion. In recent years, major metropolitan areas, such as Delhi, Mumbai, and Kolkata, have seen an increase in demand for luxury housing complexes, such as villas, penthouses, and apartments. This has increased demand for furniture, such as sofa sets, dining sets, beds, and chairs, which is expected to continue to rise in the future years. The home decor sector has benefited from the rise of the residential real estate industry over the previous few decades. The rise of this area is being driven by increased awareness among homeowners for fashionable interiors and beautiful indoors.

Over the last decade, the Indian tourism industry has grown fast and steadily. Due to travel restrictions established to prevent the coronavirus pandemic, less than 3 million international visitors visited India in 2020, a 75% decrease from the previous year. India welcomed 28.9 million tourists in 2019, including NRIs (non-resident Indians), who came to India for a variety of reasons. Hotel rooms would be in high demand as a result of this. The number of hotel rooms required to meet the needs of travel and tourism would be substantial. The furniture industry would benefit through the subsequent demand for hotel furniture. According to the Indian government, by 2030-31, India would have a market of 1.2 million cruise travelers. In the next 3-5 years, the Dream Hotel Group expects to invest roughly USD 300 million in the development of the Indian cruise industry.

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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