The global market value of the Furniture industry has grown by 6% from the year 2016 to 2020.

The global Furniture market has grown from USD 217 Bn in 2016 to USD 231 Bn in 2020. The key segments that account for ~35% of the global imports market are the Furniture and parts thereof.

3 key categories contribute to a total share of 88% in the global imports.

3 key categories, namely, Furniture and parts (35%), Seat and parts (34%) and Lamps & lights (19%) together contribute to 88% of global furniture exports. A detailed list of products being imported globally is elaborated in annexure 1.

North America and Europe are the key import markets accounting for approximately 78% of global imports of Furniture.

USA is the largest importer accounting for 28% of the total global imports. The top 10 European countries that contribute to ~ 32% of the total global imports are Germany (9%), France (5%), UK (5%), Netherlands (3%), Spain, Switzerland, Poland, Belgium, Italy and Austria each with a 2% share in global imports. Other mid-size import markets with a high rate of growth of imports are Mexico, Czech Republic, China, South Korea, Sweden, Norway, Russia, Denmark, etc. Asia is the largest exporter of Furniture accounting for 51% of the global exports, followed by Europe that contributes to 38% of the world exports. China is the largest exporter of furniture products, with a 39% share in total global exports. The top 5 exporter accounting for 60% of the global exports apart from China are Germany (7%), Poland (6%), Italy (5%) and Mexico (4%). Other mid-size exporter are US, Vietnam, Canada, Czech Republic, Netherlands, France each accounting for 2% of the total exports. India accounts for 1% of the global exports.

Furniture exports from Uttar Pradesh have grown at a CAGR of 23% over the last 5 years.

Furniture is one of the key products being exported from Uttar Pradesh. Uttar Pradesh’s furniture exports have grown from USD 195 Mn in 2016 to USD 570 Mn in 2021. The exporters of furniture sector have rebounded from the COVID induced disruptions with a 241% growth in 2021 as compared to 2020 exports. UP’s share in India’s Furniture exports has also increased from 15% in 2016 to 20% in 2021. On an average, UP contributes to ~16% of India’s furniture exports.

Products categorized under HS 940490: Articles of bedding accounts for ~33% of Uttar Pradesh’s furniture exports.
The other key products being exported are HS 940360: Wooden Furniture, HS 940389: Furniture of other materials, including cane or similar materials, HS 940320: Metal furniture, HS 940510: Chandeliers, electric ceiling fittings or wall lighting fittings, and HS 940520: Electric table, desk, bedside or floor standing lamps. These top 6 products account for ~ 83% of state’s average exports of Furniture and also showcased in the figure below:

US is the key export destination for Furniture products exported from Uttar Pradesh. US accounts for 60% of the total furniture exports of Uttar Pradesh.

Select 10 markets account for 87% of UP’s Furniture exports. The key markets served by Furniture exporters from Uttar Pradesh are US (60%), UK (6%), France (5%), Netherlands (5%), Germany (3%), UAE (2%), Spain (2%), Canada (2%), Saudi Arabia (1%) and Belgium (1%). UP’s exports have also showcased appreciable diversification to markets like Nepal, Australia, Denmark, Sweden, Italy, China, etc. with a high rate of growth during the last 3 years. The heatmap below showcases the distribution of Uttar Pradesh’s Furniture exports across the globe.

Key export opportunities are identified for Furniture exporters of Uttar Pradesh in terms of potential for scaling up of exports and export diversification opportunities as shown in figure 7. For scaling up of exports, the markets being catered by UP’s exporters at present (contributing ~66% of UP’s exports or top 10 markets) are identified. For export diversification, market opportunities are identified based on their share in global imports. At a market level, existing products and new products are identified for scaling up and diversification of exports. A comprehensive list of product level opportunities in the identified target markets is detailed in annexure 4.

G.B. Nagar in Uttar Pradesh has emerged as one of the key hubs of furniture manufacturing in the state. The district contributes to approximately ~62% of the manufacturing output from Uttar Pradesh, followed by Ghaziabad that accounts for 11% of the total output from the state.
The proximity of G.B. Nagar with the IGI airport, ICDs at Dadri and Tughlaqabad enables fast paced movement of goods. The upcoming transportation and logistics projects in the district like, Multi-modal logistics hub, Jewar airport will further improve the logistics ease for exporters of the state and G.B. Nagar in particular. G.B. Nagar also lies on the western and eastern dedicated freight corridors. Other key manufacturing districts in the state Hapur, Moradabad, Bareily, Lucknow, Bulandshahr, Aligarh, Kanpur Nagar, Amroha, etc. Under the flagship ODOP program of Government of Uttar Pradesh, the state has identified Saharanpur, Raebareli, Basti and Maharajganj as the key districts for furniture manufacturing and woodwork. Figure 9 discusses the key products and unique features of these clusters. Saharanpur is a key cluster in terms of furniture and wooden handicraft exports from Uttar Pradesh. The district exported a total of INR 424 Cr. value of products. The manufacturers from this use hardwood, teak, mango and sheesham as raw material on which intricate carving of Kashmiri influence in terms of Chinar tree engravings, floral and geometric patterns and Mughal and sultanate influence on designs is observed. The products are finished with wax, spirit and buff polishing. There are several organizations in the state that support the MSME units and exporters in their respective clusters for product development, networking, trainings and capacity building etc. A list of the key organizations and industry associations along with their contact details are mentioned in the table below:

Furniture Manufacturing districts in UP

Export oriented incentives offered by the Government of Uttar Pradesh under Marketing Development Assistance and Gateway port subsidy