Rising disposable incomes drives furniture market
The Indian Furniture Market is expected to reach US$72.11 billion by 2033 from US$27.25 billion in 2024, with a CAGR of 11.42% from 2025 to 2033.
This growth is supported by the Indian government’s efforts to empower the real estate industry and support affordable housing, the growing demand for modular and space-saving furniture solutions, and the emergence of e-commerce platforms are some of the major drivers propelling the market’s expansion.
The industry forecast was made by “India Furniture Market Size and Share Analysis – Growth Trends and Forecast Report 2024-2032” report has been added to ResearchAndMarkets.com’s offering since 19 June.
Retail modernization and shifting consumer preferences are driving a major transition in the Indian furniture business. Traditional unorganized merchants have significantly shifted to organized participants in the market, and foreign businesses now have more access thanks to the government’s policy permitting 51% FDI in multi-brand retail.
In metropolitan regions, where consumers are increasingly drawn to trendy furniture designs and ready-to-assemble solutions, this evolution is especially noticeable. Growing customer confidence in online furniture shopping is demonstrated by the average basket value for online furniture purchases, which has stayed between Rs.15,000 and Rs.20,000.
Retail dynamics are drastically changing as a result of businesses implementing omnichannel strategies to improve the customer experience. Prominent internet furniture sellers like Pepperfry and Urban Ladder have drawn a lot of interest from investors; their total investments to date have topped US$300 million.
Through the establishment of experience centers, these platforms have effectively overcome the conventional ‘touch and feel’ wood continues to be the most popular material choice, making up over 62% of all furniture made in India, despite the industry’s noticeable shift in manufacturing and material preferences. Engineered wooden furniture is becoming more and more popular among manufacturers, especially in big cities like Bangalore, Mumbai, and Delhi where ready-to-assemble furniture has become quite popular. Urbanization and the rising need for adaptable, space-efficient home furnishings that suit contemporary living areas are the main drivers of this trend.
The demand for housing and furnishings rises sharply as more people move from rural to urban regions in pursuit of greater opportunities and facilities.
As the number of people living in cities increases, more homes and businesses are being built, which increases the demand for furniture to furnish these areas. Innovative designs and small solutions are the result of urban inhabitants’ frequent search for fashionable, practical, and space-efficient furniture that fits with their contemporary lifestyles.
Furthermore, the demand for furniture is significantly impacted by population expansion. More households are created as a result of the world’s population growth, which raises demand for furniture. Further driving the rise of the furniture business is the expansion of the middle class in emerging nations, which raises disposable incomes and purchasing power.
The expansion of the furniture market in India is being greatly impacted by rising disposable incomes. Customers are growing more inclined to spend money on lifestyle and home renovation projects as the middle class grows and household incomes rise.
This change is fueling the market for high-end, fashionable, and useful furniture that embodies contemporary preferences and goals. Furniture is now seen as a statement of comfort and individuality rather than just a functional item.
Customers are preferring quality, customization, and beauty in their purchases as they have more financial flexibility. The trend is also being fueled by the need to modernize living spaces, particularly among metropolitan families and young professionals. The market is continuing to rise as a result of the increased emphasis on home furnishings and decor.
One of the biggest issues facing the Indian furniture sector is its limited penetration in rural areas. The need for furniture is rising quickly in metropolitan areas, but for a variety of reasons, rural areas are still underserved.
Because they have less money to spend on branded or high-quality furniture, rural consumers are more likely to choose less expensive, locally produced options. Demand development is also hampered by a lack of knowledge about the advantages and possibilities of modern furniture.
Access to a wide variety of furniture options is further limited in rural locations by the absence of retail establishments and inadequate e-commerce infrastructure. Higher delivery costs are also a result of logistical and transportation limitations, which deter retailers from entering certain areas. In order to achieve comprehensive market expansion, this urban-rural divide must be closed.
The Indian furniture market has a number of logistical and supply chain challenges. Because furniture is heavy and frequently fragile, it needs to be handled and transported carefully, which is challenging given the nation’s poor infrastructure.
Ineffective last-mile delivery networks, inadequate warehousing facilities, and bad road conditions all lead to transportation delays and damage. In addition to affecting delivery schedules, these logistical challenges raise operating expenses for producers and merchants.
Complicating matters further is the management of reverse logistics for damaged or returned goods. Ensuring prompt and damage-free delivery continues to be a top priority for online furniture retailers in particular. Improving customer happiness and operational efficiency requires addressing these problems through improved supply chains, technological integration, and infrastructure.
Key Players are – Nilkamal; Parin Furniture; Century Plyboards India and Godrej Industries. fiinews.com
