The Philippines Furniture Market is Expected to Grow at a CAGR of 15% During 2016-2021: Ken Research

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24 Oct, 2017, 06:16 GMT

GURUGRAM, India, October 24, 2017 /PRNewswire/ --

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Philippines Furniture Market by end users (home, office, hotels and industrial),by organized and unorganized, by cities (Cebu, Davao, Quezon, Manila, Bacolod ad others), by home furniture market Product Categories (Bedroom, Living Room, Dining Room, Kitchen and Others), by Living Room furniture (Sofa, Sofa cum bed, Television, Coffee Table and Center Table), by Bedroom furniture (Bed, Wardrobe, Dressing Table and Others), online furniture market, children furniture, mattress market by size of mattress ( King, Queen, Single), by type of mattress (Spring, Foam and others), by market structure (Organized and unorganized), by urban and rural Demand, by Market share of Major companies (Our Home, Furniture Republic, Home Plus, Mandaue Foam, Philux, Blims Furniture, Murillo, and others).

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October 2017 | Philippines News

The number of households in Philippines is projected to rise from 23.5 million in 2016 to 26.5 million by 2021, representing growth at a CAGR of 2.5% during the period 2016-2021. The residential sector generated most of the demand for furniture products in the country.
The government of Philippines aims to be the global design hub for furniture products using sustainable materials by 2030. Through the efforts of the Chamber of Furniture Industries in the Philippines (CFIP) and the Cebu Furniture Industries Foundation (CFIF), the industry expects to make a global mark through the sustainable production of sophisticated, sturdy and environmentally friendly products.

The Board of Investments (BOI) of Philippines agreed to provide incentive of PHP 9.13 million furniture export project in Mandaue City, which is expected to boost the country's positioning as a global hub for furniture. The project, under Maison Galuchat Inc, is expected to manufacture furniture and accessories and export all of them to countries in Asia, Europe and the US. The company intends to initially employ about 50 craftsmen and gradually expand it to 120 by 2022.

Middle class households in the country accounted for approximately 45.0% of overall population of the country and accounted for approximately 66.0% of the country's household income in 2016. The construction of more condominiums and residential houses in the country is expected to drive the growth of the industry in the coming years. The property sector's strong growth and families' easier access to housing credit will also increase demand for household items and furniture products in the near future. The diversification of furniture is also marked by the shift from the production of low-end furniture to the medium and high-end lines. This means emphasis on quality, design and material rather than on mass production of pieces. This is attributed primarily to growing competition globally.

It has been observed that Furniture manufacturing in Philippines is limited to clusters in Metro Manila, Pampanga and Cebu, while most of the retail sales are still restricted to the regions in Cebu, Davao and Quezon. There are multiple regions that are yet to be catered and tapped by the organized furniture market players operating in Philippines.

Ken Research in its latest study, "Philippines Furniture Market by Type (Home - Bed Room, Living Room, Dining Room, Kitchen Furniture; Office; Hotel & Industrial), by Sales (Domestic and Export) - Outlook to 2021" suggests that the increasing demand for bedroom furniture by the growing residential sector in Philippines is projected to be the highest revenue generating segment in the home furniture market. The anticipated rise in number of housing units and middle class population will drive the sales of bed frames, wardrobes, dressing table and other furniture, which are a part of bedroom set. Rise in number of online market players catering to the demand for wooden products and accessories are also estimated to stimulate the market revenues in a positive manner.

The report provides information on market size of the Philippines Furniture market, market segmentation on the basis of Organized and Unorganized market, end users and by cities which is sub categorized into home furniture market segmentation.

Key Data Points Covered in the Report: