Furniture is made from a variety of materials, including wood, metal, plastic, and textiles. Traditionally, furniture was handmade, but the rise of industrialization led to the mass production of standardized items. Furniture can also be categorized based on its intended use. Office furniture is specifically designed for workspaces, outdoor furniture is designed to withstand weather conditions, and residential furniture is focused on providing comfort and enhancing style. The design and placement of furniture play a key role in shaping the functionality and ambiance of a space. Currently, furniture in Indonesia is available in a variety of styles and designs, ranging from classic and ornate to modern and minimalist, to meet the diverse needs of individuals.
Indonesia, with a population of approximately 280 million people, is the largest economy in Southeast Asia and is expected to continue to grow in the coming years, favorably boosting the construction industry.
The rapid urbanization in Indonesia is a significant factor driving the growth of the furniture market. According to data from The World Bank Group, in 2022, 57.93% of Indonesia's population resided in urban areas, with a year-on-year growth rate of 1.77%. According to the publisher, this increasing urbanization is directly contributing to the expansion of both residential and commercial infrastructure. As more people move into urban areas, there is a growing demand for stylish and innovative furniture to adorn their homes. Consequently, these dynamics are expected to continue fostering the growth of the furniture market in Indonesia throughout the forecast period.
The burgeoning tourism industry in Indonesia serves as another significant catalyst for market growth. Tourism plays a vital role in the Indonesian economy, generating substantial foreign exchange revenues. Moreover, the increasing influx of tourists has stimulated demand for furniture, particularly in regions experiencing a surge in tourism activity. Bali, known for its thriving tourism sector, has witnessed a notable increase in demand for furniture, driven by the establishment of hotels and resorts. According to the publisher, the expanding hospitality sector, propelled by the tourism boom, is poised to bolster furniture market revenues, fueled by the growing need for upscale furniture in hotels across the country. As of November, the number of foreign tourist arrivals in 2023 had reached 10.4 million, an increase of 110.86 percent as compared to the same period in 2022. Notably, Foreign tourist arrivals in Indonesia increased by 30.17% year-on-year to 917.4 thousand in November 2023, amid a sustained recovery in the tourism sector.
However, the primary obstacle to the growth of the furniture market in Indonesia is the instability in raw material prices. Fluctuations in the prices of raw materials, especially for luxury furniture, are primarily driven by factors such as rising raw material costs. This presents a dual challenge for key players in the market, who must grapple with either absorbing the elevated raw material costs or passing them on to consumers by selling products at higher prices, thus exposing major players to the risk of losing market share.
Considering the factors mentioned above and in conjunction with the Indonesian government's initiatives to boost the country's furniture export value, the publisher predicts a consistent growth trajectory for the furniture industry in Indonesia, with a compound annual growth rate (CAGR) of 6.5% from 2024 to 2033. Consequently, the furniture market in Indonesia is expected to reach US$ 5.80 billion by 2033.
Also, with strong government support and a positive market landscape, furniture manufacturers in Indonesia are expected to increase their export values in the near future. According to the publisher, the export value of furniture in Indonesia is projected to increase to US$ 4.11 billion in 2033 with a compound annual growth rate (CAGR) of 8.6% from.
Topics covered:
- Indonesia Furniture Industry Overview
- The economic and policy environment of Indonesia's furniture industry
- Indonesia Furniture Industry Market Size, 2024-2033
- Analysis of the main Indonesia furniture production enterprises
- Key drivers and market opportunities for Indonesia's furniture industry
- What are the key drivers, challenges and opportunities for Indonesia's furniture industry during the forecast period 2024-2033?
- Which companies are the key players in the Indonesia furniture industry market and what are their competitive advantages?
- What is the expected revenue of Indonesia furniture industry market during the forecast period 2024-2033?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Indonesia furniture industry market is expected to dominate the market by 2033?
- What are the main negative factors facing the furniture industry in Indonesia?
Table of Contents
Companies Mentioned
- Raisa House of Excellence
- PT VIVERE Multi Kreasi
- PT. Chitose Internasional Tbk.
- Lio Collection
- IKEA Indonesia
- Republic Furniture Group
- Posteak Furniture
- Wisanka Indonesia
- Informa
- Pijar Sukma
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 60 |
| Published | February 2024 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 3.29 Billion |
| Forecasted Market Value ( USD | $ 5.8 Billion |
| Compound Annual Growth Rate | 7.0% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 10 |
