Market Trends of India Wood Industry
Rise in Demand from the Residential Sector is Driving the Market
The demand for wooden furniture in the Indian market is mainly driven by the residential sector owing to the customer's interest in utilizing wooden furniture in homes for many purposes, such as wardrobes, living room furniture, and home decor. This is augmenting the need for wooden furniture such as sofa sets, dining sets, beds, and chairs, which are further expected to witness prolific growth in the upcoming years. Apart from this, the demand for engineered wooden furniture is also rising in metro cities, such as Delhi, Bangalore, Mumbai, and other major cities. The residential real estate market has also witnessed prolific growth in the last couple of years, owing to the increasing population and growing demand for affordable housing accommodation, which will add to the demand for wooden furniture.
The residential segment is expected to witness a surge in demand for furniture in living rooms and bedrooms over the forecast period due to the increasing number of government-initiated real estate construction projects, particularly in urban settings. For example, in India, the Ministry of Housing and Urban Affairs is responsible for the initiation and approval of infrastructure development projects in urban areas and other major metropolitan cities of the country.
Rise of Online Sales of Wooden Furniture Market in India
The demand for online furniture and home décor in India is projected to increase significantly over the forecast period due to the substantial growth of e-retail and e-commerce in India, as well as the expansion of the supply chain of furniture. The expected increase in internet penetration, as well as an increase in demand from tier 2 and tier 3 cities, will further contribute to the market's growth.
E-commerce has revolutionized the furniture shopping experience, allowing furniture retailers to reach customers worldwide. This has enabled them to offer a wide variety of products, such as rare and exclusive pieces that were previously unavailable in many markets. Data-driven insights have been instrumental in driving online furniture sales growth. By taking advantage of the vast amount of data available on e-commerce sites, furniture retailers can make informed decisions about product assortment, price, and marketing tactics.
In addition, the increasing popularity of e-commerce and mobile shopping in India is likely to contribute to an increase in furniture sales via digital channels. Apart from residential demand, the furniture market is also being driven by the expansion of the tourism, hospitality, and corporate sectors, leading to increased demand for furniture.
