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Residential Furniture Market to Reach ₹2,855 Billion by 2028

The market is expected to reach ₹2,855 Billion by 2028 from ₹1,489 Billion in 2023.

Photo by Spacejoy / Unsplash

Table of Contents

The Indian residential furniture market has been growing steadily over the past decade driven by economic development, rising incomes, and increasing consumer focus on home décor.

The market is expected to reach ₹2,855 Billion by 2028 from ₹1,489 Billion in 2023.

Key Growth Drivers

  • Real estate/housing boom - More home ownership and need for furniture
  • Increase in disposable incomes among middle class urban households
  • Growth of online furniture retail making products more accessible
  • Focus of millennials and younger home owners on decor and aesthetics
  • Influx of international furniture brands into the Indian market

Popular Furniture Categories

  • The bedroom furniture segment accounts for the biggest share at 48% of the residential market. This includes beds, wardrobes, dressers etc.
  • Living room furniture holds a 30% market share comprising sofas, coffee tables, TV units etc.
  • Other major categories are kitchen furniture, dining sets, decorative furniture, outdoor furniture etc.

85% of the Market is Unorganised

The Indian residential furniture market remains largely unorganized, with the unorganized sector accounting for an 85% share as of 2023. However, the market is gradually becoming more organized. Between Fiscal Years 2015-2020, the organized furniture segment grew at 1.4 times the growth rate of the unorganized segment. This indicates that organized retail is rapidly gaining ground over standalone local furniture shops and carpenters even though its overall market share is still low.

The higher growth rate of organized furniture retail can be attributed to factors like product standardization, wider choice for consumers, increased branding, and the growth of e-commerce. Going forward, the share of organized players in the residential furniture market is expected to continue growing as consumer preferences shift towards branded furniture.