India’s home and interior market has experienced unprecedented growth, soaring to approximately Rs 2.4 trillion ($29.5 billion) in 2023. This remarkable expansion is largely driven by rising disposable incomes, rapid urbanisation, and a booming real estate sector, leading to a heightened demand for premium home furnishings and improvement products. The indoor living product segment currently dominates the market, holding around 41 percent of the total market share.
A report by Praxis Global Alliance highlights the transformative impact of the real estate surge on consumer behaviour, with a growing emphasis on quality, aesthetics, and technological advancements in home décor. Modern consumers are increasingly prioritising self-expression and comfort in their home design choices, resulting in a noticeable shift towards minimalist and maximalist design trends. Popular elements include warm colour schemes, indoor plants, and eco-friendly materials.
Market players have adeptly responded to these evolving consumer preferences by enhancing engagement efforts through social media and e-commerce platforms. This direct connection with consumers has enabled personalised brand experiences and the adoption of omnichannel strategies, integrating online and offline channels to provide a seamless shopping experience. The trend towards premiumisation is evident, characterised by innovative product offerings, smart home solutions, and sustainable materials.
The thriving e-commerce sector, propelled by increasing internet penetration and the widespread use of smartphones, tablets, and laptops, is a key driver of market growth in India. Leading companies are leveraging visually appealing online product displays and aggressive promotional campaigns to expand their consumer base. Customisation options, allowing customers to request specific materials and colours for furniture upholstery, have significantly enhanced consumer engagement and satisfaction, further fuelling market growth.
Government initiatives are also playing a pivotal role in bolstering the market. Campaigns like Make in India aim to reduce imports and encourage domestic manufacturing of home furnishings, creating employment opportunities in the process. Additionally, the Amended Technology Upgradation Fund Scheme (ATUFS) is being implemented to stimulate capital investments for technology upgrades and modernisation in the textile industry. These initiatives, coupled with rising foreign direct investment (FDI) in the textile sector and increasing demand for bath and table linen, are driving market growth across the country.
