Market Insights – India
The furniture industry is a Rs. 71,000 Cr. industry today the modular kitchensegment being the fastest growing. As per industry statistics, the kitchen segment stands at around Rs 20,000 Cr.,with the modular kitchen industry at Rs. 2500 Cr. and growing. With the increasing emergence of nuclear families, rising disposable income and better affordability, this industry is expected to grow at the rate of 40% per annum.
- The Indian Furniture market is worth about $8bn.
- Constitutes 0.5% of the total GDP.
- Employs 3,00,000 people.
- Highly unorganized- only about 15% in organized sector.
- Organized sector growing at 30% CAGR.
- Wooden home furniture is the biggest segment.
- Key states for wood furniture: Gujarat, Rajasthan, UP, Punjab, Kerala, AP, West Bengal.
Modular Kitchen Industry
Modular Kitchens are based on functional practicality. The onset of modular kitchens in the Indian furniture market have spelt a consciousness that even kitchens can have a style statement and at the same time be comfortable, efficient and elegant. Convenience, efficient use of space, and lifestyle changes have increased the demand for modular kitchens today. Opportunities exist, not only with domestic players but with international retailers as well.
- Stands at around Rs. 2,500 Cr.
- Indian readymade kitchens currently sold at the rate of 10,000 units per month in the country.
- Expected to grow 10 times in the next three to four years.
- Modular kitchen market in India is still at a nascent stage but has tremendous growth potential.
- Market has been witnessing a growth rate of 50% YoY.
- It is largely unorganized with the presence of local and small players. Unorganized market includes carpenters making self-designed kitchens based upon the requirements of the households.
- Modular kitchens are customized based on the requirements of the consumer. Based on the need of the consumer, it can be set up with various accessories like chimney, burner etc.
- Kitchens account for 40% of the furniture and fittings industry. Products in this market are largely focused towards establishments in urban India.