Teak furniture is manufactured using tropical hardwood sourced from teak plantations. Teak wood has unique characteristics that make it suitable for outdoor and indoor furniture such as high durability, moisture resistance, and sustainability even in harsh weather conditions. The growing construction of commercial establishments and luxury residences has propelled the demand for premium and durable outdoor furniture made using teak wood. The rising affluence and changing lifestyle of consumers have increased the spending on luxury home décor and furnishings including teak furniture across the residential and commercial sectors.
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 of 2024 to 2030.
Key Takeaways
Key players operating in the teak furniture 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).
Key opportunities in the Teak Furniture Market Overview are growing construction of luxurious hotels, restaurants and resorts in tourist destinations where outdoor teak furniture sees high demand. Developing economies in Asia and Latin America are expected to offer significant growth opportunities owing to increasing disposable income and spending on home furnishings including teak furniture. Technological advancements in finishing and coating processes have improved scratch and weather resistance of teak further driving its adoption in home and commercial outdoor spaces.
Market Drivers
Increasing construction of high-end residential properties and luxury commercial establishments such as five-star hotels, restaurants and resorts is a major factor driving the growth of the global teak furniture market. Rapid urbanization, growing affluence of consumers and changing lifestyles have increased the demand for premium home and outdoor furnishings. Properties made using teak are highly scratch and weather resistant making it suitable for outdoor spaces in varied climatic conditions. The availability of wide range of designs and styles along with aesthetic appeal of teak furniture continues to support its adoption across residential and non-residential end-use industries.
Current Challenges in Teak Furniture Market
The teak furniture market is facing challenges due to rising costs of teak wood and its decreasing availability. As teak plantations are shrinking and restrictions are imposed on felling natural forests, the supply of quality teak wood is declining sharply. This is increasing pressure on prices and availability of teak wood for furniture manufacturing. Additionally, the outbreak of Covid-19 pandemic has significantly disrupted the supply chains and manufacturing operations in the furniture industry. Lockdowns imposed worldwide led to closing down of wood workshops and lack of raw materials. The demand from end use sectors also took a major hit due to restrictions on commercial activities and shrinking disposable incomes.
SWOT Analysis
Strength: High durability and longevity of teak wood makes furniture extremely long-lasting. It does not require frequent refinishing or treatment.
Weakness: Rising costs and limited supply of quality teak wood. Dependence on natural wood resource makes prices volatile.
Opportunity: Adoption of agroforestry and plantation methods can help increase sustainable supply of teak wood. Development of hybrid wood species with teak properties provides an alternative.
Threats: Pests and diseases infecting existing teak plantations. Vulnerability of supply chain to economic and health crises like Covid-19 pandemic.
Geographical Regions of Concentration
The Asia Pacific region, especially Indonesia and India, account for around 80% of the global production as well as consumption of teak wood. This is due to availability of suitable climate and long history of teak cultivation in these countries. The major teak furniture manufacturing clusters are located inCentral Java, East Java and West Java provinces of Indonesia.
Fastest Growing Geographical Region
The teak furniture market in North America is witnessing steady growth and emerging as the fastest growing regional market. This is attributed to rising disposable incomes, growing preference for luxury and eco-friendly furniture, and established distribution channels. The United States currently accounts for over 25% of global demand for teak furniture and the demand is projected to increase at an annual rate of around 7% during the forecast period.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it