April 23, 2024
Teak Furniture Market

The Global Teak Furniture Market in Trends of Rapid Urbanization

The Teak Furniture Market is witnessing substantial growth driven by increased demand for luxurious and durable furniture options for both indoor and outdoor applications. Teak wood is highly popular for furniture making due to its water resistance, durability, and ability to withstand varying weather conditions without significant wear and tear. It is widely used to create high-quality furniture for living rooms, bedrooms, outdoor patios, porches, and lawns.

The Global Teak Furniture Market is estimated to be valued at US$ 67.86 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Teak Furniture Market are BASF (Germany), Evonik Industries (Germany), P&G Chemicals (US), Croda International (UK), Mitsubishi Chemicals (Japan), Sisterna (Netherlands), Stearinerie Dubois (France), Dai-Ichi Kogyo Seiyaku (Japan), Alfa Chemicals (UK), FELDA IFFCO (US), World Chem Industries (India), Compass Foods (Singapore), and Zhejiang Synose Tech (China). Rapid urbanization and rising disposable incomes have been driving the demand for premium furnishing solutions amongst urban populations globally. The outdoor furniture segment has experienced substantial gains on account of growing preference for leisure and recreational activities outdoors.

Growing demand in both developed and emerging economies along with changing lifestyles and rising importance of home decor are propelling the Teak Furniture Market Size forward. Rapid growth of the real estate and construction sectors coupled with increased spending on home renovation and remodeling is further fueling market expansion. Moreover, rising promotions and marketing by furniture retailers through various channels is also boosting awareness and demand for teak furniture products across regions.

The market is witnessing significant expansion in North America and Europe due to strong demand and presence of major importers and distributors in the regions. However, the Asia Pacific region dominated market share in 2021 led by India, Indonesia, and other Asian countries, which are major producers and consumers of teak wood. Increasing consumption in China and other developing Asian countries is projected to drive the regional market over the forecast period.

Market Key Trends

One of the key trends gaining traction in the teak furniture market is the rising popularity of eco-friendly teak wood. Companies are increasingly adopting organic and sustainable harvesting practices to expand their eco-friendly product portfolios. They are promoting green attributes such as using wood from carefully managed forests and plantations. Another prominent trend being witnessed is customization and availability of multifunctional furniture allowing consumers to effortlessly transform the look and utility of a space. Technology innovations are also enabling customizations as per evolving consumer demands and preferences for different types of teak furniture.

Porter’s Analysis

Threat of new entrants: The Teak Furniture Market requires significant capital investments and established supply chains. These high barriers protect existing players from new competition.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of many furniture brands and options for teak furniture. However, the reputation and quality of established brands provide some advantage to sellers.

Bargaining power of suppliers: Suppliers of teak wood and other raw materials have moderate to high bargaining power due to concentrated sources and changing environmental regulations. This impacts production costs for manufacturers.

Threat of new substitutes: While alternative woods and manufacturing materials pose a threat, many customers specifically prefer teak for its durability and appearance. Brand reputation and warranty services help reduce potential substitutes.

Competitive rivalry: The market has many international and regional players competing on quality, designs, and pricing.

Geographical Regions

In terms of value, North America currently dominates the global teak furniture market share mainly due to the high demand from countries like the United States. The large home furniture market and consumer preference for luxury furniture drives the consumption of teak products in the region.

The Asia Pacific region is expected to be the fastest growing market for teak furniture during the forecast period. With growing economies, rising disposable incomes, and expansion of real estate and construction industries, countries like China and India will pump higher investments into furniture sectors including teak. Advancements in coastal infrastructure across Southeast Asian countries are further fueling the consumption of teak wood.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it