Furniture Industry: What Can India Learn from China?

Two countries are rapidly advancing in the international furniture market — India and China! These giants not only fulfil the furniture needs of their respective countries but also export significantly in the global market.

In this article, let’s delve into the furniture industries of these two countries and explore how India, by learning from China, can not only enhance its own industry but also contribute to the global furniture market.

What’s Happening?

According to ET, China holds the largest market share in the furniture world, reaching $540.4 billion in 2023 and estimated to reach $623.8 billion by 2028. While the growth rate may be slowing down, China has established itself as a leader in the furniture industry. On the other hand, India aims to reach a market value of Rs 1,40,000 crore by 2028, showcasing a growth rate of over 8%.

Indian Furniture Industry

According to Invest India, India’s furniture sector has seen significant growth in recent years. Regarding exports, during April-January 2022-23, furniture exports tripled compared to the same period in 2013-14.

The Indian furniture market is estimated to grow at a rate of 10.9% from 2023-28, reaching $32.7 billion by 2026. These figures indicate a consistent increase in demand for furniture in the country.

China’s Furniture Industry

According to Statista, China’s furniture market is one of the largest in the world and continues to grow. In 2024, the revenue of the Chinese furniture industry was US$ 87.85 billion, and it is expected to grow in the coming years. Between 2024 and 2029, the Chinese furniture market is projected to grow at a CAGR of 8.63%.

What Can India Learn from China?

The Indian furniture industry is rapidly advancing, but there is still much to learn to become a global leader. In this regard, China can serve as a source of inspiration. Let’s see how:

Use of Automation and Robotics: China has embraced automation and robotics on a large scale in its furniture production. This has increased production capacity and ensured consistency in quality. India can also follow this path to further advance in the furniture industry.

Large-scale Production: To meet global demand, China has built factories that produce furniture on a large scale. India can adopt a similar strategy to reduce costs and export more furniture worldwide.

What’s in it for Investors?

Various companies in the furniture sector are listed on the Indian stock exchanges (NSE and BSE). Therefore, investors interested in the furniture industry can choose the right company based on metrics such as profitability, better valuation, future prospects, etc.

Understanding stock performance in the furniture industry:

What’s Next?

The Indian furniture industry is on a rapid development trajectory, and immense opportunities are visible in the future. According to IBEF, the global furniture industry is growing at a CAGR of 6% from 2021 to 2030, reaching a market of $872.5 billion by 2030.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer