With technical advances such as connectivity to mobile devices and the availability of high-speed 4G networks, online delivery is becoming more common for purchasing furniture in the region. In India, urbanization and the increase in the number of nuclear families are pushing up demand for wooden furniture. The wooden furniture industry is expanding due to changing habits, tastes, and desires for various types of wood furniture.
India’s wood-based industries, which include major corporations as well as millions of artisans and small and medium businesses, now export timber products worth more than $1 billion1, a 138 percent growth in value since 2010.
Market Overview in India
In India, the furniture industry is dominated by wooden furniture. In India, the market for wooden furniture has skyrocketed. The natural wealth of many tree species abounds in India, and the wooden furniture industry employs both indigenous and imported timber. India is one of the world’s biggest importers of timber. However, the furniture industry in India contributes just 0.5 percent of the country’s Gross Domestic Product (GDP).
In recent years, the success of traditional furniture has led to a growth in demand for wood-based furniture. Teak, sandalwood, Sheesham, ebony, walnut, sal, red cedar, and rosewood are some of the most traditional woods used in Indian furniture. To respond to quick shifts in the furniture industry, India’s furniture market is changing from unorganized to organized. Kerala, Punjab, Andhra Pradesh, West Bengal, Uttar Pradesh, and West Bengal are the most important states in India for the wood furniture industry.
Growing Demands of Wood Furniture Industry
In Indian cities, engineered wood furniture is also gaining prominence. The primary reason for this is an increase in demand for ready-to-assemble furniture in urban areas. Furthermore, the simplicity at which modular and multifunctional furniture can be bought from an E-commerce website is fostering the growth of modular and multifunctional furniture in the market for home decoration and convenience. Leather and glass furniture are becoming more common as furniture options, which may stifle the growth of wooden furniture in India.
The residential sector is the major driver of demand for wooden furniture in India. In comparison to the industrial market, the residential sector makes a significant contribution to the market for wooden furniture. This is because people use wooden furniture in their homes for a variety of uses, including cupboards, decorating, and other things. This is a growing demand for wooden furniture such as sofa sets, dining sets, tables, and chairs, which are expected to rise steadily in the coming years.
Aside from that, demand for engineered wooden furniture is increasing in major cities like Delhi, Bangalore, Mumbai, and others. The residential real estate industry has also seen fast growth in recent years, owing to the rising population and demand for affordable housing, which is expected to push up demand for wooden furniture in the market.
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Competitive Environment
Due to the involvement of a large number of small and local manufacturers in the industry, which accounts for a larger share of demand, the wood furniture market in India is competitive. While furniture products are in high demand in southern and northern India, the majority of manufacturers and distribution networks are located in the south. Importers and producers in the industry have been increasing their demand for kiln-dried hardwood lumber shipped from the United States.
The Indian wooden furniture market offers manufacturers a plethora of ways to develop and meet the market’s growing demand. To increase their production and designs in the industry, local manufacturers are collaborating with international manufacturers. The demand for modular furniture generates a multitude of possibilities for wooden furniture and hardware manufacturers. When designing furniture, furniture designers take into account several considerations, including the furniture’s functionality, appearance, feel, and meaning.
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Government Support for Furniture Industry
The government is working on a new scheme to encourage domestic furniture production to limit India’s reliance on imported furniture. The Department of Promotion of Industry and Internal Trade (DPIIT) is in talks with other ministries and states to implement a plan to make India self-sufficient in furniture production by offering tax cuts and other incentives. In the fiscal year of FY21, India imported $592 million in furniture, with China accounting for more than half of the amount.
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