Market Size of India Wood Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.00 Billion |
Market Size (2029) | USD 1.47 Billion |
CAGR (2024 - 2029) | 8.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
India Wood Market Analysis
The India Wood Market size is estimated at USD 1 billion in 2024, and is expected to reach USD 1.47 billion by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).
The market is projected to expand due to various factors, including increased disposable income and consumer spending on home decoration. Furthermore, the development of infrastructure and the construction of residential, commercial, and industrial properties will further contribute to the market's growth. Furniture Manufacturers in India are adopting new technologies, such as IoT, to gain an edge over their competitors. With the help of IoT services, furniture manufacturers can improve their design control, performance monitoring, and upkeep. The adoption of IoT in furniture manufacturing is expected to be a significant factor in developing the furniture market in India shortly.
India is the third largest wood exporter in the world after China and Vietnam, with an annual demand of 63 million cubic meters. Of this, 30 million cubic meters are produced domestically, while 33 million cubic meters are imported. The Indian furniture industry is experiencing rapid growth driven by various factors. These include the growing preference of urban dwellers for modular and modern furniture, the rise in urbanization across India, and a preference for long-lasting and hybrid seating options. The demand for furniture is expected to remain on the rise. The booming wood industry in India is helping to reduce the cost of furniture production, thus making it more cost-effective.
The pandemic surged the demand for office furniture that is both durable and comfortable. As the pandemic has spread, many people have continued to work from home, leading to an increase in demand for modular office furniture. However, some factors prevent this growth, such as high costs and a lack of availability of the product's raw material. To address these issues, manufacturers provide innovative multi-function office furniture to stay ahead of the competition.
India Wood Industry Segmentation
Wood furniture includes any furniture made of a wood product such as rattan or wicker, engineered wood, etc. The India Wood Market is segmented by type, material, distribution channel, application and by product. By type, the market is segmented into hardwood and softwood. By material, the market is segmented into plywood, laminates, MDF and other materials. By distribution channel, the market is segmented into online and offline and by product, the market is segmented into bedroom, seating, kitchen and other products. The report offers market size and forecasts for the wood furniture market in India in value (USD) for all the above segments.
By Type | |
Hardwood | |
Softwood |
By Material | |
Plywood | |
Laminates | |
MDF | |
Other Materials |
By Product | |
Bedroom | |
Seating | |
Kitchen | |
Other Products |
By Application | |
Residential | |
Commercial |
By Distribution Channel | |
Online | |
Offline |
India Wood Market Size Summary
The wood industry in India is poised for significant growth, driven by increasing disposable incomes and a rising demand for home decoration. The sector is benefiting from the expansion of infrastructure and the construction of residential, commercial, and industrial properties. The adoption of advanced technologies like IoT by furniture manufacturers is enhancing design control and performance monitoring, contributing to the market's development. As India stands as the third-largest wood exporter globally, the domestic demand for wood is substantial, with a significant portion being met through imports. The furniture industry is experiencing rapid growth, fueled by urbanization and a preference for modern, modular, and durable furniture. The pandemic has further accelerated the demand for office furniture, prompting manufacturers to innovate with multifunctional designs to address challenges like high costs and raw material shortages.
The residential sector is a major driver of demand for wooden furniture, with increasing interest in using wood for various home applications such as wardrobes and living room furniture. The growth of the residential real estate market, spurred by population increases and the need for affordable housing, is expected to further boost the demand for wooden furniture. The rise of e-commerce and online furniture sales is transforming the market, with increased internet penetration and demand from tier 2 and tier 3 cities contributing to this trend. The competitive landscape of the Indian wood furniture market is characterized by numerous small and local manufacturers, with significant opportunities for innovation and collaboration with international partners. Leading companies like Century Plyboards India Ltd., Godrej Interio, and Ikea India Pvt Ltd. are actively participating in this dynamic market, focusing on sustainability and safety innovations to enhance their offerings.
India Wood Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Drivers
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1.1.1 Increased consumer spending on residential furniture
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1.1.2 Investment in renovations and remodeling is increasing
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1.2 Market Restraints
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1.2.1 Shortage of skilled labor in the wood manufacturing industry
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1.2.2 Regulatory compliance has always been one of the biggest issues in the forest and timber market.
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1.3 Market Opportunities
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1.3.1 Rise in the number of hotels and restaurants
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1.3.2 The demand for furniture products that are environmentally friendly is on the rise
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Impact of COVID-19 on the market
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1.6 Insights into Export and Import of Wooden Furniture
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1.7 Insights on Current Trends and Technological Innovations in the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Hardwood
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2.1.2 Softwood
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2.2 By Material
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2.2.1 Plywood
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2.2.2 Laminates
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2.2.3 MDF
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2.2.4 Other Materials
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2.3 By Product
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2.3.1 Bedroom
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2.3.2 Seating
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2.3.3 Kitchen
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2.3.4 Other Products
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2.4 By Application
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2.4.1 Residential
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2.4.2 Commercial
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2.5 By Distribution Channel
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2.5.1 Online
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2.5.2 Offline
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India Wood Market Size FAQs
How big is the India Wood Market?
The India Wood Market size is expected to reach USD 1.00 billion in 2024 and grow at a CAGR of 8% to reach USD 1.47 billion by 2029.
What is the current India Wood Market size?
In 2024, the India Wood Market size is expected to reach USD 1.00 billion.