Furniture and Home Decor Market Overview - India
India's furniture market is currently worth $17.9 billion, and is set to be worth $27 billion by 2022. It is also currently experiencing a growth of 12.91% each year. Indian households spend an average of 5.6% of their total monthly expenditure for furniture. This amounts to $1,29 in rural areas, and $2,24 in urban areas. The average age of a typical furniture buyer in India decreased from 45 years to 37 years in the last half a decade.
India is the 14th-biggest furniture market in the world. Currently there are around 10,476 importers that are engaged in shipping furniture to India. The primary sources of furniture in India are Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan. There was approximately 75,930 tonnes of furniture imported to India in 2016. China is currently the biggest single source of imports of furniture, while Malaysia takes the second place and Italy takes third.
Overall, the imports are increasing, mostly because the consumers find the imports from China to be valuable because of their competitive pricing.
MARKET SIZE AND GROWTH
The Indian furniture market is currently worth $17.9 billion, and is set to be worth $27 billion by 2022. The market's current CAGR is 12.91% and it is expected to stay that way until 2023. Indian furniture market growth is currently driven by the increase of population that live in urban cities, growing urbanization, increase in demand for durable as well as hybrid seating furniture. Furthermore, the growth is boosted by an increase in investments in the retail sector that is coming from different national and international companies. The technological advancements are helping the rise of the e-retail sector, and consumers are more likely to buy furniture through online channels.
Modern retail is estimated at 19% of the total furniture market and is expected to grow at 24-27% per year. Retail expansion increased at the rate of 16-21% when it comes to the number of retail outlets and retail space, while revenue grew at around 15%.
When it comes to different segments of the market, the share of small furniture is 75%, while large furniture accounts for 25%.
AVERAGE SPEND PER PERSON
A report published by the Indian Government's Ministry of Statistics & Programme Implementation calculated the average spending per household which they split into separate reports for the rural and urban areas. The overall expenditure in terms of absolute values of monthly per capita expenditure (MPCE) for all durable goods per household amounts to ₹ 1468.69 for rural areas and ₹ 2601.54 for urban areas. Using this calculator we get the dollar amounts which are as follows:
$23 dollars of monthly per capita expenditure (MPCE) for all durable goods per household in rural areas.
$40 dollars of monthly per capita expenditure (MPCE) for all durable goods per household in urban areas.
The households spend an average of 5.6% of their total monthly expenditure for furniture. This amounts to the following:
$1,29 (0,056 x $23) per capita monthly expenditure (MPCE) for furniture per household in rural areas.
$2,24 (0,056 x $40) per capita monthly expenditure (MPCE) for furniture per household in urban areas.
The increase in demand when it comes to carpets, bed sheets, curtains and other different home furnishing is growing each year. This is known as a sub segment of home furnishing which is expected to grow at CAGR of 8%. At the same time, curtains, upholstery, rugs and carpets are expected to experience a CAGR of 8%.
When it comes to consumer profiles, the biggest growth is experienced in middle class families.
The average age of a typical furniture buyer in India decreased from 45 years to 37 years in the last half a decade.
Other demographic trends involve people in India starting to think of their homes as reflection of themselves which is prompting them to spend more on furniture and home decor.
Working women are spending increasingly more on home decor.
Millenials are driving the trend of hiring professional service providers when it comes to home decoration. The millenial generation is also looking to buy their furniture online. They are particularly aware of the new trends, especially those coming from the west.
The most notable players in the Indian furniture market are: Godrej Interio, Durian and Furniture Concepts. However, they have a very small share of the market in total. Their output accounts for only 15% of all domestic production in the sector. The remaining 85% falls under smaller companies as well as individual craftsmen.
India's furniture market is rapidly expanding, with the yearly growth rate of 12.91%. The key players in the market are Godrej Interio, Durian and Furniture Concepts. One of the main demographic trends involves people in India starting to think of their homes as reflection of themselves which is prompting them to spend more on furniture and home decor.