FUTURE OF LAMINATE FURNITURE 2021
India Furniture Market Size, Demand, Opportunity & Growth Outlook 2021
Furniture has been a matter of aesthetics part from a necessity in modern times. Furniture has its application in households as well as commercial setups. Be it a small compartment to store things to modular kitchens and workplace infrastructure, and Furniture has gained its importance over the course of time. India is rapidly growing in this sector, especially after the liberalization. There has been a significant rise in the imports of Furniture to cater to domestic demands in India. The retail sector for the same is constantly transforming for better management of the growing market. Along with the Furniture, there is also a huge surge in furniture surface market, especially the laminates. Let’s explore the growth trends and current scenario of these markets in the article.
Components of the furniture industry with Laminate
The furniture industry encompasses numerous components with different applications. Here’s the list:
- Wooden Furniture
- Metal furniture
- High and low-cost plastic furniture
- Wooden frames
- Parts of seats
- Prefabricated Furniture
- Household furniture
- Laminate and ply furniture surfaces
Apart from this, the industry also covers Furniture made from materials other than the ones mentioned above for e.g. glass.
The market size of the furniture industry
The size of the Indian furniture market spread across all the metropolitan cities is estimated to be over INR 60,000 crore. The wooden furniture industry alone covers INR 60 crore in the market. Surprisingly 85% of the wooden furniture industry covers handcrafted Furniture that contributes to the luxury of people and ethnic representation of the communities in India. The laminate market alone covers a market of USD 2.8 billion along with flooring and Furniture (according to 2019 reports). All in all, Indian furniture industry provides employment to millions of people in the country, which is a clear indication of its huge market size.
The increasing income of people has led to an improvement in the quality of life. And this trend has raised the furniture market higher than ever, especially by raising the demand for household furniture. A growth of 2.56 million is estimated by 2022 in the employment provided by Indian Furniture industry. The home furniture market in India is also estimated to attain higher CAGR by 2022.
Further, the market of furniture surfaces is also rising higher as people choose better finishing for their Furniture. It is expected that the $2.8 billion laminate markets will now expand at 6.4% CAGR between 2020-2027. The demand for bedroom and kitchen furniture is growing in India. There has been an increase in furniture imports and exports in India. The beautifully carved wooden Furniture of India is gradually becoming the centre of attraction for the global market. The furniture export market in India has grown by over 15.29% from 2014 to 2020.
The organized furniture market of India is around 10% of the entire sector which is estimated to grow by 35% CAGR in the coming years. The furniture market here is divided into residential and commercial segments. The residential segment owned a share of USD 20.65 million in the year 2018. But it is estimated to grow by around 14.16% CAGR by 2023. Whereas, the commercial sector is estimated to grow by 11.29% CAGR by 2023. The overall Indian furniture market is estimated to grow by 12.91% CAGR during the period of 2016-2023. Further, the demand for commercial Furniture is anticipated to rise due to the development of tourism and hotel industries.
The modifications in business policies of India have made the export, import, and local furniture sales and marketing easier for the stakeholders. The growing wood industry has made it possible to raise wooden furniture manufacturing in India. COVID’19 have raised a special demand in the furniture industry for anti-bacterial, and anti-microbial furniture surfaces. Hence, the industry is constantly developing its products to meet the newly raised consumer needs.
Urbanization wave is rapidly influencing India due to which there has been a significant hike in demand for modular and compact Furniture. Another factor that has laid to the growth of the industry is the easy availability of the internet and access to information. Some furniture industries have now set up their online stores to increase their business amidst the technological advancements of the current world. Online shopping has brought the furniture industry to the next level by increasing the sales and expanding the market for manufacturers as well as retailers.
Indian population today is a big fan of Western Furniture. This has led to raised imports of Furniture from countries like China, Germany, Poland, Italy, USA, etc. There has also been an increased demand for low-cost plastic furniture among the low-income groups of India.
Furniture and flooring surfaces are also being manufactured and imported at a large scale in India. One of the most known among them is laminates. Basically, they are sheets prepared from craft papers and resins. But today they are customized according to the needs and demands of the people. The market offers anti-bacterial laminates with their basic properties like resistance to stress, heat, water, and scratches.
The reason behind the growth of Indian Furniture Industry
India is a treasure of manpower, skills, and art required to shape the furniture industry. The raw materials required for building Furniture are easily available at affordable costs. Moreover, the government is also providing subsidies, especially to unorganized sectors for better development of the industry. As discussed earlier, the growth in tourism, and real estate industries, along with changing customer demands, have led to growth as well as developmental changes in the industry. The variety of textures and colours available in laminates today have also been a factor behind the rising demand for Furniture in the country.
Although the furniture industry contributes 0.5% to the overall GDP, it is growing at a relatively higher pace. The development in hospitality and real estate industries, as well as increased demand for Indian traditional Furniture, has accounted for this growth. The export potential of the sector also has grown drastically in the last decade. Indian population is more inclined to western Furniture, and this has led to rising in the import of Furniture from countries like China, Germany, Italy, Philippines, etc.
Almost 90% of the industry falls under unorganized segments, but the government is making constant efforts to develop these segments by providing subsidies. The liberal trade policies have also paved the way for the growth of this industry in India. The latest trend in the industry is customized Furniture and online markets that have raised the industry to an entirely different level.
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