Indonesia Furniture and Home Retail Market

The Indonesia furniture and home retail market, worth USD 10 billion, is fueled by urban expansion and increasing disposable incomes, focusing on sustainable and customizable products.

Region:Asia

Author(s):Shubham

Product Code:KRAB6231

Pages:91

Published On:October 2025

About the Report

Base Year 2024

Indonesia Furniture and Home Retail Market Overview

  • The Indonesia Furniture and Home Retail Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by increasing urbanization, rising disposable incomes, and a growing middle class that seeks quality home furnishings. The market has seen a surge in demand for both traditional and modern furniture styles, reflecting changing consumer preferences and lifestyle choices.
  • Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density and economic activity. Jakarta, as the capital, serves as a hub for both local and international furniture brands, while Surabaya and Bandung are known for their vibrant retail environments and access to a diverse consumer base, making them critical for market growth.
  • In 2023, the Indonesian government implemented regulations aimed at promoting sustainable practices in the furniture industry. This includes a mandate for manufacturers to source materials responsibly and adhere to environmental standards, which is expected to enhance the overall quality and sustainability of furniture products in the market.
Indonesia Furniture and Home Retail Market Size

Indonesia Furniture and Home Retail Market Segmentation

By Type:The furniture market is segmented into various types, including Wooden Furniture, Metal Furniture, Upholstered Furniture, Outdoor Furniture, Modular Furniture, Custom Furniture, and Others. Among these, Wooden Furniture is the most dominant segment due to its traditional appeal and durability. The preference for wooden furniture is driven by its aesthetic value and the cultural significance associated with wood in Indonesian households. Additionally, the rise in eco-conscious consumers has further bolstered the demand for sustainably sourced wooden products.

Indonesia Furniture and Home Retail Market segmentation by Type.

By End-User:The market is segmented by end-users, including Residential, Commercial, Hospitality, Government, Educational Institutions, and Others. The Residential segment leads the market, driven by the increasing number of households and the trend of home renovations. Consumers are investing in quality furniture to enhance their living spaces, reflecting a shift towards more personalized and comfortable home environments. The growing trend of remote work has also contributed to the demand for home office furniture.

Indonesia Furniture and Home Retail Market segmentation by End-User.

Indonesia Furniture and Home Retail Market Competitive Landscape

The Indonesia Furniture and Home Retail Market is characterized by a dynamic mix of regional and international players. Leading participants such as IKEA Indonesia, Fabelio, Informa, Ace Hardware Indonesia, Toko Furniture, Lotte Mart, Kawan Lama Group, Hometown Furniture, Daya Furniture, Djarum Group, Sinar Mas Land, Mitra10, Bhinneka, Taman Anggrek Mall, Karya Cipta contribute to innovation, geographic expansion, and service delivery in this space.

IKEA Indonesia

1996

Jakarta, Indonesia

Fabelio

2015

Jakarta, Indonesia

Informa

2000

Jakarta, Indonesia

Ace Hardware Indonesia

1995

Jakarta, Indonesia

Toko Furniture

2005

Jakarta, Indonesia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small)

Revenue Growth Rate

Market Penetration Rate

Customer Retention Rate

Average Order Value

Pricing Strategy

Indonesia Furniture and Home Retail Market Industry Analysis

Growth Drivers

  • Increasing Urbanization:Indonesia's urban population is projected to reach 60% in the future, up from 56% in 2020, according to the World Bank. This urbanization trend drives demand for furniture as more people move to cities, seeking modern living spaces. The urban middle class, estimated at 150 million, is increasingly investing in home furnishings, contributing to a robust market for furniture and home retail. Urban areas are becoming hubs for lifestyle changes, further fueling this growth.
  • Rising Disposable Income:The average disposable income in Indonesia is expected to rise to approximately IDR 60 million (around USD 4,200) per capita in the future, according to the IMF. This increase allows consumers to spend more on home furnishings and decor. As the economy grows, the demand for quality furniture is expected to surge, with consumers prioritizing aesthetics and functionality in their purchases, thus enhancing the overall market landscape.
  • Growing E-commerce Adoption:E-commerce sales in Indonesia are projected to reach IDR 300 trillion (approximately USD 21 billion) in the future, as reported by Statista. This growth is driven by increased internet penetration, which is expected to hit 75% of the population. The convenience of online shopping is reshaping consumer behavior, leading to a significant rise in online furniture sales. Retailers are investing in digital platforms to capture this expanding market segment effectively.

Market Challenges

  • Intense Competition:The Indonesian furniture market is characterized by fierce competition, with over 1,000 registered manufacturers and numerous international brands vying for market share. This saturation leads to price wars, which can erode profit margins. Local manufacturers face challenges in differentiating their products, as consumers have a plethora of options. The competitive landscape necessitates innovation and strategic marketing to maintain a foothold in the market.
  • Supply Chain Disruptions:The global supply chain disruptions caused by the COVID-19 pandemic have significantly impacted the Indonesian furniture industry. Shipping delays and increased freight costs have led to a 20% rise in operational costs for many manufacturers. Additionally, sourcing raw materials has become more challenging, with some materials experiencing shortages. These disruptions hinder production capabilities and affect timely delivery to consumers, posing a significant challenge for retailers.

Indonesia Furniture and Home Retail Market Future Outlook

The future of the Indonesian furniture and home retail market appears promising, driven by urbanization and rising disposable incomes. As consumers increasingly prioritize home aesthetics, the demand for innovative and sustainable furniture solutions is expected to grow. Retailers are likely to enhance their online presence, leveraging technology to improve customer experiences. Additionally, the integration of smart furniture into homes will likely gain traction, reflecting changing consumer preferences and technological advancements in the industry.

Market Opportunities

  • Expansion of Online Retail Channels:The rapid growth of e-commerce presents a significant opportunity for furniture retailers. In the future, online sales are expected to account for 30% of total furniture sales in Indonesia. Retailers can capitalize on this trend by enhancing their digital marketing strategies and optimizing their online platforms to attract tech-savvy consumers seeking convenience and variety.
  • Customization and Personalization Trends:As consumer preferences shift towards unique and personalized products, the demand for customized furniture solutions is on the rise. In the future, it is estimated that 25% of consumers will seek personalized options. Retailers can leverage this trend by offering customizable designs, materials, and finishes, thereby enhancing customer satisfaction and loyalty in a competitive market.

Scope of the Report

SegmentSub-Segments
By Type

Wooden Furniture

Metal Furniture

Upholstered Furniture

Outdoor Furniture

Modular Furniture

Custom Furniture

Others

By End-User

Residential

Commercial

Hospitality

Government

Educational Institutions

Others

By Sales Channel

Online Retail

Brick-and-Mortar Stores

Wholesale Distributors

Direct Sales

Others

By Price Range

Budget

Mid-Range

Premium

Luxury

By Material

Solid Wood

Engineered Wood

Metal

Plastic

Fabric

Others

By Design Style

Contemporary

Traditional

Rustic

Industrial

Minimalist

Others

By Distribution Mode

Direct Distribution

Indirect Distribution

Franchise

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Industry, Ministry of Trade)

Manufacturers and Producers

Distributors and Retailers

Interior Designers and Architects

Home Improvement and Renovation Companies

Logistics and Supply Chain Providers

Financial Institutions

Players Mentioned in the Report:

IKEA Indonesia

Fabelio

Informa

Ace Hardware Indonesia

Toko Furniture

Lotte Mart

Kawan Lama Group

Hometown Furniture

Daya Furniture

Djarum Group

Sinar Mas Land

Mitra10

Bhinneka

Taman Anggrek Mall

Karya Cipta

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Indonesia Furniture and Home Retail Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Indonesia Furniture and Home Retail Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Indonesia Furniture and Home Retail Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Urbanization
3.1.2 Rising Disposable Income
3.1.3 Growing E-commerce Adoption
3.1.4 Demand for Sustainable Products

3.2 Market Challenges

3.2.1 Intense Competition
3.2.2 Supply Chain Disruptions
3.2.3 Regulatory Compliance Issues
3.2.4 Fluctuating Raw Material Prices

3.3 Market Opportunities

3.3.1 Expansion of Online Retail Channels
3.3.2 Customization and Personalization Trends
3.3.3 Growth in Export Markets
3.3.4 Increasing Demand for Smart Furniture

3.4 Market Trends

3.4.1 Shift Towards Eco-Friendly Materials
3.4.2 Rise of Minimalist Designs
3.4.3 Integration of Technology in Furniture
3.4.4 Growth of DIY Furniture Solutions

3.5 Government Regulation

3.5.1 Import Tariffs on Furniture
3.5.2 Standards for Sustainable Materials
3.5.3 Tax Incentives for Local Manufacturers
3.5.4 Regulations on Waste Management

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Indonesia Furniture and Home Retail Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Indonesia Furniture and Home Retail Market Segmentation

8.1 By Type

8.1.1 Wooden Furniture
8.1.2 Metal Furniture
8.1.3 Upholstered Furniture
8.1.4 Outdoor Furniture
8.1.5 Modular Furniture
8.1.6 Custom Furniture
8.1.7 Others

8.2 By End-User

8.2.1 Residential
8.2.2 Commercial
8.2.3 Hospitality
8.2.4 Government
8.2.5 Educational Institutions
8.2.6 Others

8.3 By Sales Channel

8.3.1 Online Retail
8.3.2 Brick-and-Mortar Stores
8.3.3 Wholesale Distributors
8.3.4 Direct Sales
8.3.5 Others

8.4 By Price Range

8.4.1 Budget
8.4.2 Mid-Range
8.4.3 Premium
8.4.4 Luxury

8.5 By Material

8.5.1 Solid Wood
8.5.2 Engineered Wood
8.5.3 Metal
8.5.4 Plastic
8.5.5 Fabric
8.5.6 Others

8.6 By Design Style

8.6.1 Contemporary
8.6.2 Traditional
8.6.3 Rustic
8.6.4 Industrial
8.6.5 Minimalist
8.6.6 Others

8.7 By Distribution Mode

8.7.1 Direct Distribution
8.7.2 Indirect Distribution
8.7.3 Franchise
8.7.4 Others

9. Indonesia Furniture and Home Retail Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small)
9.2.3 Revenue Growth Rate
9.2.4 Market Penetration Rate
9.2.5 Customer Retention Rate
9.2.6 Average Order Value
9.2.7 Pricing Strategy
9.2.8 Product Return Rate
9.2.9 Inventory Turnover Ratio
9.2.10 Customer Satisfaction Score

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 IKEA Indonesia
9.5.2 Fabelio
9.5.3 Informa
9.5.4 Ace Hardware Indonesia
9.5.5 Toko Furniture
9.5.6 Lotte Mart
9.5.7 Kawan Lama Group
9.5.8 Hometown Furniture
9.5.9 Daya Furniture
9.5.10 Djarum Group
9.5.11 Sinar Mas Land
9.5.12 Mitra10
9.5.13 Bhinneka
9.5.14 Taman Anggrek Mall
9.5.15 Karya Cipta

10. Indonesia Furniture and Home Retail Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Budget Allocation Trends
10.1.2 Preferred Suppliers
10.1.3 Procurement Processes
10.1.4 Sustainability Considerations

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Trends
10.2.2 Key Projects
10.2.3 Budget Prioritization

10.3 Pain Point Analysis by End-User Category

10.3.1 Quality Concerns
10.3.2 Delivery Timeliness
10.3.3 After-Sales Support

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Training Needs
10.4.3 Technology Adoption

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 Case Studies
10.5.3 Future Expansion Plans

11. Indonesia Furniture and Home Retail Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from Indonesian trade associations and government publications
  • Review of market trends and consumer behavior studies from academic journals
  • Examination of import/export data and statistics from customs authorities

Primary Research

  • Interviews with key stakeholders in the furniture manufacturing sector, including factory owners and managers
  • Surveys conducted with retail managers in major home furnishing stores across urban centers
  • Focus group discussions with consumers to understand preferences and purchasing behavior

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including trade publications and market surveys
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks through expert panels comprising industry veterans and market analysts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national GDP contribution from the furniture and home retail sector
  • Segmentation of market size by product categories such as furniture, home decor, and appliances
  • Incorporation of growth rates from historical data and projected economic indicators

Bottom-up Modeling

  • Collection of sales data from leading furniture retailers to establish baseline revenue figures
  • Estimation of average transaction values and customer footfall in retail outlets
  • Calculation of market size based on unit sales and average pricing across different segments

Forecasting & Scenario Analysis

  • Utilization of time-series analysis to project future market trends based on historical growth patterns
  • Scenario modeling based on economic conditions, consumer spending behavior, and urbanization rates
  • Development of best-case, worst-case, and most-likely scenarios through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Furniture Retailers150Store Managers, Sales Executives
Home Decor Manufacturers100Product Development Managers, Marketing Heads
Consumer Insights on Furniture Purchases200Homeowners, Interior Designers
Online Furniture Retailers80E-commerce Managers, Digital Marketing Specialists
Logistics and Supply Chain in Furniture70Logistics Coordinators, Supply Chain Analysts

Frequently Asked Questions

What is the current value of the Indonesia Furniture and Home Retail Market?

The Indonesia Furniture and Home Retail Market is valued at approximately USD 10 billion, driven by urbanization, rising disposable incomes, and a growing middle class seeking quality home furnishings.

Which cities are the main hubs for the furniture market in Indonesia?

What types of furniture are most popular in Indonesia?

How is the Indonesian furniture market segmented by end-user?

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