The Furniture Industry in India, 2019 to 2023: Vendors Generating Significant Revenue Through Online Platforms

The Indian furniture market is anticipated to reach USD 32.61 billion (SGD 44.6 billion) by 2018 by registering a CAGR of 13.38 per cent during the forecast period of 2018-2023. Moreover, the market is expected to garner USD 61.09 billion (SGD 83.6 billion) by the end of 2023. Further, the India furniture market is anticipated to achieve a year-over-year growth rate of 14.3 per cent in 2023 as compared to the previous year.

Technological advancements such as the availability of high-speed internet networks such as 4G and the spiked absorption of smart gadgets have been boosting the retail sector in India. These advancements have made it easier and more convenient for customers to buy furniture through online channels. In addition to this, the rising number of smartphone users across the country and the increase in online shopping has encouraged furniture industry players to introduce their products through online channels.

Players such as Pepperfry, Urban ladder and others are generating significant revenue through online platforms. The rising trend of online shopping is also pushing manufacturers like Godrej Furniture and Nilkamal to introduce and sell their furniture through online spaces. @Home, a flagship brand of Nilkamal Pvt. Ltd known for its range of readymade furniture products, has launched an online shopping portal exclusively for @Home furniture, furnishings and home décor.

Wooden furniture is anticipated to continue its dominance during the forecast period in the Indian furniture market, and expected to grow with a CAGR of 11.32 per cent during the forecast period of 2018-2023.

The impact of western culture and growth of the nuclear family unit have affected the demand for wood furniture, and changing taste and preferences for different kinds of furniture has pushed the growth of the market. Customer interest has been found to be moving towards the usage of different materials like leather and glass.

The Indian furniture market is further segmented into residential and commercial sectors. The residential segment accounted for USD 20.65 billion (SGD 28.3 billion) in 2018. Further, India’s residential furniture market is expected to grow at a CAGR of 14.16 per cent over the forecast period of 2018-2023. Moreover, the residential sector’s market is expected to achieve year-over-year growth rate of 15.08 per cent in 2023 as compared to the previous year.

India is a country with a huge population of urban dwellers, and the demand of furniture items from urban house is rapidly growing, adding to the growth of the furniture market from the residential sector of India.

There has been a significant growth in the real estate sector based on rising demand for residential property in the country.

The Indian furniture market’s commercial sector is anticipated to achieve a CAGR of 11.97 per cent during the forecast period of 2018-2023. The commercial sector is further sub-segmented into contracting and non-contracting. The non-contracting segment in India is expected to grow at a CAGR of 13.32 per cent over the forecast period of 2018-2023, and expected to achieve a year-over-year growth rate of 14.17 per cent in 2023 as compared to the previous year.

The demand of furniture has been observed to generate mostly from northern and southern India. The southern region continues to be the leading revenue generator during the forecast period of 2018-2023 on account of an expanding distribution network of furniture manufacturers in the region. Kerala is among the major suppliers of wood, which widely uses raw material in the country’s furniture market. The region is anticipated to maintain its dominance by 2023.