RTA Furniture Market

The global RTA furniture market is expected to witness substantial growth owing to several factors, such as growing urbanization; rise in per capita disposable income; and rapid expansion of tourism, hospitability, and real estate across the globe. It has been observed that the demand for multi-functional furniture is rising among consumers, which is primarily driving the market. Moreover, innovative designs and customization provided by the key players are playing a vital role in the growth of the furniture market. However, the prevalence of unorganized sector acts as a restraint for the growth of key players in the market.

The rising population and increasing urbanization are majorly driving the growth of real estate across the globe. The growth of the real estate sector is leading to a continuous increase in the number of houses and commercial properties, which is directly influencing the growth of the furniture market. According to the UN Department of Economic and Social Affairs (UN DESA), “the urban population of the world has grown rapidly from 751 million in 1950 to 4.2 billion in 2018. Asia, despite its relatively lower level of urbanization, is home to 54% of the world’s urban population. The most urbanized regions include Northern America (with 82% of its population living in urban areas in 2018), Latin America and the Caribbean (81%), Europe (74%) and Oceania (68%). The level of urbanization in Asia is now approximating 50%.” However, the stable economic growth in the emerging economies in Asia-Pacific, such as India and China, is expected to boost urbanization, along with the growth of real estate in the coming years. Moreover, with the increase in per capita disposable income, consumers are highly investing in home decoration in which furniture is a significant element. Construction of households and commercial properties with advanced technology and a luxurious lifestyle is uplifting the growth of luxury furniture market and driving the growth of the overall furniture market during the forecast period.

With the continuous increase in demand for ready-to-assemble furniture, there is a growing concern for a healthy environment. In recent times, sustainable development is no longer an option, but a necessity. Thus, with growing awareness of environmental concerns, homeowners and designers are incorporating eco-friendly elements in remodeling projects new constructions. There is increasing attention to certified ecolabel, not only for the furniture structure but for the finishing material as well. Thus, owing to this trend, manufacturers are inclining towards manufacturing eco-friendly furniture in which they use environment-friendly materials such as certified sustainable wood, recycled wood, bamboo, and recycled metals. Certain key players have taken the initiative to go green by manufacturing and offering eco-friendly furniture with innovative designs. For instance; Godrej Interio took the initiative of eco-friendly to pursue environmentally friendly practices and follows policies of energy efficiency, use of recycled products, use of renewable energy, water efficiency, and improvement of indoor air quality. In its initiative to go green, the company is using bamboo as a material in manufacturing the furniture. Thus, there is a huge scope for the furniture manufacturers to indulge in manufacturing eco-friendly RTA furniture as the consumers are highly aware of the concept of sustainable development and are demanding eco-friendly furniture for a better future.

The RTA furniture market is highly fragmented with huge number of players across the globe. There is stiff competition among the players in terms of designs, raw materials, supply chain, and after-sales services. However, the major factor affecting their growth is the prevalence of the unorganized sector. It has been observed that the sales of the key players are majorly hampered by the local vendors, owing to their easy availability, lower price, and ease of customization. Moreover, individuals are still dependent on traditional methods for arranging household furniture which persists the presence of unorganized sector in the market. A major share of the population is price sensitive which makes it difficult for the organized brands to establish their dominance over the unorganized sector.