Furniture

The Indian furniture industry has witnessed substantial growth in recent years, establishing itself as a significant player in the global market. Valued at ~ $24 Bn in 2024, the domestic furniture market is projected to reach $54 billion by 2033, reflecting a robust compound annual growth rate (CAGR) of around 10.9%.  The demand for furniture has been observed to majorly generate from northern and southern India. The market is predominantly divided into home furniture, which accounts for 60%, and office furniture, making up the remaining 40% .

Major demand factors include increased urbanisation, rising house decoration and refurbishment, rising disposable incomes, changes in lifestyle and consumer tastes, and a surge in e-commerce. India presently ranks 16th in the global market for furniture exports

India is the 5th largest producer and 4th largest consumer of furniture globally.
India-Australia Economic Cooperation and Trade Agreement (ECTA) and India-UAE Comprehensive Economic Partnership Agreement (CEPA), provides zero-duty market access opportunities for India-made furniture to these global markets.

With digitalization and e-commerce becoming the sector's primary development drivers in the future, D2C sales are predicted to increase at a 36% CAGR to reach $17 Bn by 2030

Innovative eRetail- From well-listed and separated products based on colour, function, and area of the space to the utilisation of AR/VR, online shopping is currently providing consumers with a near-perfect and immersive purchase experience.

Key Reasons to invest in this sector:

• Logistics Infrastructure: Development of multimodal logistics parks (MMLP) across 35 nodes which will account for 60% of freight movement in the country and reduce freight cost per ton 4).
• Increasing Consumer Demand: Urbanization trends indicate that by 2047, over 51% of India's population will live in urban areas, leading to increased demand for household, modular and luxury furniture
• Availability of Competitive and Skilled labor: India boasts of a rich heritage of unique craftsmenship, woodwork, carpentry & furniture with regions like Jodhpur emerging as demand centers for the local industry.  India stands out as an advantageous destination due to its comparatively lower labor costs amongst other competing geographies. 
• Availability of Raw Materials: Investment attractiveness in India’s furniture sector stems from its rich supply of raw materials like teak and rosewood, essential for quality production. India is the world’s 2nd largest producer of timber & 6th largest producer of natural rubber. The country is rich in indigenous wood species such as sheesham, acacia, and mango, which are widely used in the production of case goods, occasional furniture, and accent pieces. 
• Development of furniture hubs such as International Furniture Park in Tamil Nadu, upcoming International Furniture Clusters/Parks coming up in Karnataka, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh.
• India enjoys better transit time advantage for East Coast and European harbors; Average turnaround time (TRT) for ships across major ports in India has significantly reduced to around 2.7 days: 30-50 % (import cargo) and 20-70 % (export cargo).