Furniture Market in Indonesia to Yield High Profit Growth in 2022

0
110
Furniture Market in Indonesia to Yield High Profit Growth in 2022
Furniture Market in Indonesia to Yield High Profit Growth in 2022

Technavio, a market research firm, has released its latest report on the furniture industry. The report, titled “Furniture Market in Indonesia 2018-2022”, highlights growth opportunities for the sector within the next 5 years. The report shows that the market will grow steadily over the next 5 years. Technavio analysts predict that by 2026, it will be worth US$3.29 billion.

However, they also project that the momentum will decelerate at a rate of 12.08%, which is less than expected. This is because of an increase in online shopping across Indonesia, which has led to price cuts and competition within the sector.

As per the data published by The World Bank and the United Nations Department of Economic and Social Affairs (UN-DESA), urbanization in Indonesia is growing at a rapid pace. In 2020, 56.3% of the population in Indonesia was expected to reside in cities. The fast-paced urbanization is anticipated to drive the growth of residential and commercial buildings, which are anticipated to boost the demand for innovative furniture such as flat-pack furniture.

The main reason for such high demand for flat-pack furniture is its ease of use and trendy designs. Flat-pack furniture also provides an option for people with little storage space, owing to their compact structure, which does not occupy much space. Moreover, these products are less expensive than conventional furniture, which encourages consumers to buy these products and spurs the growth of the Indonesian furniture market during the forecast period.

An increasing demand for environmentally-friendly furniture in Indonesia is expected to drive the furniture market in Indonesia. Several non-profit trade associations have introduced guidelines for suppliers and manufacturers of eco-friendly furniture, which help manufacturers in ensuring that their business and corporate activities are promoting health, environmental equilibrium, and human well-being.

LEAVE A REPLY

Please enter your comment!
Please enter your name here