April 20, 2024
Teak Furniture Market

Teak Furniture Market Poised to Grow Owing to Rising Home Remodelling Activities and Construction Trends

Teak furniture is popular for its durability and resistance against insects and weather effects. It is a hardwood that is suitable for indoor and outdoor applications. Teak is an ideal choice for patio furniture, outdoor chairs and tables, garden benches, and decking. The rising home remodelling and construction activities have augmented the demand for teak outdoor and indoor furniture globally. Teak furniture provides longevity, requires less maintenance compared to other woods, and retains its natural beauty with time.

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). The rising middle-class population coupled with growing disposable income levels in developing countries has augmented the demand for premium outdoor and indoor furniture. Technological advancements in terms of innovative designs, durable finishes, and virtual product visualization tools have enhanced customer experience and fueled market growth.

Market Drivers
The rising home renovation and remodeling activities along with an increase in residential and commercial construction projects globally are majorly driving the Teak Furniture Market Size. Teak furniture is gaining momentum for patio areas, decking, and waterfront properties due to its moisture resistance and durability against harsh weather conditions. The rising trend of outdoor and indoor living is further propelling the demand for teak garden furniture, benches, and other outdoor seating solutions. Increasing spending on decoration and beautification of homes and offices has accelerated furniture purchases, thereby benefitting the teak furniture market.
Challenges in Teak Furniture Market

The Teak Furniture Market is facing challenges due to rising costs of raw materials and transportation. Teak wood prices have increased significantly over the past few years due to low availability of quality wood and high international demand. This has pushed up overall production costs for furniture makers. Similarly, volatile fuel prices have raised freight charges for shipping teak furniture overseas. The market is also impacted by stringent environmental regulations in major sourcing countries regarding sustainable harvesting of teak wood. Strict compliance increases operational expenses. Furthermore, the shift towards modular, space-efficient and low maintenance furnishings in the residential and commercial sectors poses a threat to traditional heavy teak furniture. substitute materials like engineered wood are also gaining preference due to their lower costs.

SWOT Analysis

Strength: Robust demand for teak due to durability and aesthetics. Well established supply chain and manufacturing base.
Weakness: Increasing raw material costs. Threat from substitutes.
Opportunity: Expanding export markets in Asia Pacific and Middle East. Growth in customized and outdoor furniture segments.
Threats: Shortage of quality wood due to unsustainable farming. Rising environmental regulations.

Geographical Regions

North America accounts for the largest share in the global teak furniture market, both in terms of value and volume. This is mainly attributed to high purchasing power of consumers and presence of major brands. India and China collectively form a key manufacturing hub for teak furniture catering to international demand.

The Asia Pacific region excluding India and China is projected to witness fastest growth during the forecast period from 2024 to 2031. Factors such as rapid urbanization, rising incomes and shifting lifestyle trends are driving furniture sales. Countries like Vietnam, Indonesia, Malaysia and Philippines offer lucrative opportunities for exporters and local manufacturers.

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