Home furniture refers to a wide range of movable objects and items that are designed to enhance the functionality, comfort, and aesthetics of residential spaces. These items are intended for use in homes and serve various purposes, from providing seating and storage to adding decorative elements to interior spaces. They encompass items like sofas, chairs, recliners, and benches. Home furniture plays a vital role in creating a comfortable and functional living environment. It serves practical purposes and contributes to the overall aesthetics and style of a home. The choice of furniture can reflect the homeowner’s personal taste and design preferences, making it an integral part of interior design and home decor.

Home Decor Market Trend in Indonesia

Indonesia’s steady economic growth has led to an increase in disposable income among its population. As a result, consumers have more purchasing power to invest in home furniture, including higher-end and designer pieces. The ongoing urbanization in Indonesia has resulted in the expansion of cities and an increase in the number of urban households. Consequently, urban dwellers are requiring furniture to furnish their homes, leading to a growing demand for home furniture. 

Besides, the construction of new residential properties, including apartments, houses, and condominiums, is creating a demand for furniture to furnish these homes. This, coupled with the rise of e-commerce platforms in Indonesia has made it easier for consumers to access a wide range of home furniture products. Online shopping offers convenience and access to a variety of furniture options. Moreover, the increasing awareness of environmental sustainability has led to a demand for eco-friendly and sustainable furniture. Consumers are looking for products made from renewable materials and produced with eco-friendly practices, which is propelling the market. 

Furthermore, consumers are increasingly looking for furniture that can be customized to suit their specific needs and preferences. Customized furniture allows individuals to have unique pieces that fit their homes perfectly. Additionally, government policies and incentives related to the furniture and manufacturing industry are impacting the market. Supportive regulations or initiatives boost local production and exports, thus augmenting the market growth in Indonesia.

Home Decor Market Segmentation

Indonesia has a home decoration market segmentation, including :

By Type

Based on type, the category A fit-out segment leads the South-East Asia interior fit-out furniture market, commanding an impressive 60.8% market share. This is attributed to its prominent role in setting up basic infrastructure for commercial spaces. As the backbone of the interior fit-out market, Category A encompasses all essential installations necessary for functional office operations, including floorings, ceilings, and fundamental partitioning. The strong performance of this segment is indicative of the booming commercial real estate sector in South-East Asia, where rapid urban development and economic growth have spurred a surge in demand for office fit-outs.

With urbanization trends showing no signs of abating and the corporate sector in countries like Malaysia and Thailand continuing to expand, the need for such foundational fit-out services is expected to grow. This segment's prominence is further solidified by CAGR of 5.15%, the highest growth rate in the market, signaling a sustained upward trajectory through 2031. The growth is propelled by an influx of foreign investments and a burgeoning number of start-ups requiring quick-to-market office solutions, which Category A Fit-Out provides.

By Services

In terms of services segment of the South-East Asia interior fit-out furniture market, the manufacturing segment holds the majority 55.2% market share due to region’s industrial capabilities and innovation in creating customized furniture solutions. Manufacturing services are not just about producing furniture; they involve a comprehensive approach that includes design, supply, installation, and maintenance, catering to both commercial and residential projects. This segment’s significant market share is indicative of the high value placed on specialized, high-quality manufacturing in South-East Asia, a region known for its craftsmanship and material diversity. 

Furthermore, the segment is projected to grow at the highest CAGR of 5.28%, reflecting an aggressive expansion and an increasing preference for bespoke furniture. This growth is driven by rising standards in living and working spaces, the demand for ergonomic and sustainable products, and the integration of smart technology into furniture design. The high CAGR also points to the potential for South-East Asian manufacturers to scale up operations and penetrate new markets, leveraging their expertise in creating furniture that meets specific climatic, cultural, and functional requirements unique to the region.

By Application

By application, the commercial application segment of the South-East Asia interior fit-out furniture market is accounting for 75.1% of revenue share thanks to its critical role that fit-out furniture plays in the commercial sector, encompassing corporate offices, retail spaces, and the hospitality industry. The large market share is also attributed to the robust economic development in the region, where there is a continuous rise in the construction of commercial buildings and facilities, especially across Malaysia and Thailand. This segmen’s growth is underpinned by the increasing urbanization and the shift towards more sophisticated commercial environments that require high- quality, functional, and aesthetically pleasing furniture.

Looking ahead, the commercial segment of the South East Asia interior fit-out furniture market is projected to expand at a CAGR of 4.86%, signaling a continued investment in commercial infrastructure. The growth is further facilitated by the resurgence of the tourism industry post-pandemic and the consequent need for furnishing new hotels, restaurants, and entertainment venues, all of which demand the latest in fit-out furniture to attract and retain customers.

By Model

In the model category, the B2B segment has captured more than 55% market share of the South-East Asia interior fit-out furniture market. This significant market share is indicative of the intense focus on serving the business sector, with companies being the primary consumers. The prominence of the B2B model is reflective of a market where commercial dealings between businesses are paramount, and the demand for fit-out furniture is directly tied to the commercial growth and expansion of the region. The B2B segment’s success is rooted in the understanding of corporate needs and the delivery of comprehensive fit-out solutions that align with business objectives. 

With a forecasted CAGR of 4.69%, the highest among the models, the B2C sector is set to experience the fastest growth. This is likely fueled by the continuous evolution of workplace environments, the increasing number of multinational corporations setting up regional hubs, and the growth of local businesses in the South-East Asian market. The B2C model’s adaptability to the needs of diverse business operations, from startups to established corporations, further contributes to its dynamic growth potential.

Home Decor Top Selling Product in Indonesia

Growing Urbanization is Driving the Market

The market is expected to grow from the rising demand for high-quality furnishings to suit the preferences and values of consumers. The home decor furniture market is increasingly from the advent of furniture that promises to enhance comfort substantially. The overall demand is increasingly fuelled by the rise in urbanization across the country. Pieces of multi-purpose furniture such as sofa cum beds, hydraulic beds, foldable tables, and beds with storage are gaining massive popularity among homebuyers who want to make optimal use of living spaces. This is a crucial trend among urban buyers, which is expected to fuel the expansion of the home furniture market. Nowadays, theme-based home decor and regular renovation of homes is an ongoing trend followed by consumers belonging to middle and upper-middle-class populations of urban cities. These classes of the urban population look beyond the basic functionality of furniture and, thus, may look for additional attributes such as style and comfort.

Bedroom Furniture Segment

Bedroom furniture consists of relaxing beds integrated with coordinating bedside tables, drawers, and wardrobes for a serene sanctuary that meets all the requirements of end-users. Increasing per capita income of consumers and the adoption of newer lifestyle trends have revamped traditional households into modern luxury residential dwellings. Increasing inclination towards light, stylish, and comfortable walk-in closet designs or free-standing wardrobes has resulted in an important element of creating modern bedroom interiors. A high preference for space-saving fixtures is drawing more attention towards closet drawers, which are replacing bedroom dressers, thereby leaving more space in the bedroom. This scenario is likely to propel the demand for wardrobes and storage furniture over the forecast period.

Products Insights

There are some home decor product is most sale in Indonesia

• Living-Room and Dining-Room Furniture
• Bedroom Furniture
• Kitchen Furniture
• Lamps and Lighting Furniture
• Plastic and Others

Top Companies in the Southeast Asia Home Decor Market

• ATC craft
• PT. Chitose Internasional Tbk
• Decoy Plant Co., Ltd.
• East Coast Furnitech Public Company Limited (ECF) 
• Global House Public Company Limited. (Thailand)
• Hin Lim Furniture Manufacturer Sdn. Bhd
• Inter IKEA Systems B.V.
• PT Integra Indocabinet Tbk
• Kaiser 1 Furniture Industry (Vietnam) Co., Ltd. 
• KOKUYO CO., LTD.
• Lio Collection
• Minh Duong Furniture Corp
• Phu Tai Joint Stock Company Pottery Barn
• VIVERE Group
• VS FURNITURE
• Waltco International, Inc.
• West Elm
• And Other Top Companies

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