Indonesia Makes the List: World's Largest Furniture Market Share

Data from the Ministry of Industry's (Kemenperin) Trademap shows several countries dominating global furniture exports.

China is the largest exporter, holding a 32.86% market share in 2021.

This is significantly higher than Vietnam, which ranked second with 8.48%. Poland followed in third place with 6.83%.

Germany and Italy occupied the fourth and fifth positions, with market shares of 6.77% and 6.10%, respectively.

Indonesia ranked 17th with a market share of 1.19%, lagging behind fellow ASEAN member Malaysia, which held the 12th position with a 1.44% market share.

Kemenperin acknowledges that Indonesia's furniture export performance has not been outstanding, despite the country's abundant furniture raw materials.

"Indonesia's comparative advantage as a producer of abundant furniture raw materials has not been able to boost the competitiveness of its furniture products in the global market," wrote Kemenperin in its report, *The Strategic Role and Potential Strengthening of the Furniture Industry for the National Economy*.

(Read also: Top 10 Global Furniture Exporters: China Takes the Lead)

However, Kemenperin identifies several factors contributing to increased exports, one of which is the US-China trade war. This created opportunities for Indonesian furniture products to fill the US market share previously occupied by China.

The US-China trade war also led to the relocation of some businesses from China to Indonesia, further contributing to export growth. Another factor boosting exports was the COVID-19 pandemic, which forced many people to stay home.

"This condition increased the demand for furniture to create a more comfortable or less monotonous atmosphere at home for working from home," said Kemenperin.

Furthermore, the increasing number of Free Trade Agreements (FTAs) has opened up export opportunities for Indonesian furniture. The Ministry of Trade finalized 25 Free Trade Agreements (FTAs) worldwide in June 2022. These FTAs cover all continents, from the Americas and Australia to Europe and Asia.

"With the increase in FTAs, not only are new markets opened, but there is also assistance with various facilities and reductions in import tariffs to new export destinations," wrote Kemenperin.

(Read also: Top 10 Export Destinations for Indonesian Furniture in 2022)