The Indonesian Furniture and Handicraft Industry Association (HIMKI) is eyeing the export potential of the Indian furniture market, forecasted to reach USD 37.72 billion or approximately IDR 589 trillion by 2026. Additionally, the compounded annual growth rate (CAGR) of the Indian furniture market stood at 13.37% during the 2020-2026 period. India ranks as the fourth-largest consumer of furniture and the fourteenth-largest furniture market globally. HIMKI Chairman Abdul Sobur stated that India represents a promising market for furniture and handicrafts poised for growth over the next decade. This growth is supported by the development of major cities, housing area construction programs, and office areas. Sobur emphasized the exponential growth potential of the Indian market for furniture and handicrafts in the coming years.
Efforts to expand exports to India commenced in 2022, resulting in an increase in furniture export value from USD 7.09 million to USD 16.49 million in 2023. HIMKI aims to further boost sales to this country. These efforts come in response to a 28% year-on-year decline in furniture exports in 2023, dropping from USD 2.5 billion to USD 1.8 billion, attributed to geopolitical conditions and inflation in major export destinations. Sobur noted that the rise in transportation costs to Asian countries remains relatively controlled compared to those to the US and Europe. The decline in furniture exports in 2023 was also attributed to the perceived high selling prices of local products compared to those from Malaysia, Vietnam, and China. Despite significant opportunities, Indonesia faces challenges as other countries also target India as an export destination for furniture. ASEAN countries are beginning to explore closer cooperation opportunities with India in this regard.
