Future of the Furniture Industry in Bangladesh
During a recent discussion titled “Future of the Furniture Industry in Bangladesh,” industry experts highlighted the challenges faced by the wooden furniture sector in the country. They emphasized that the industry has not been able to thrive due to the inability of market players to export their products at competitive prices. The high tariffs imposed on imported raw materials and the subsequent shortage of quality components have hampered growth in the sector.
Despite the potential for growth in the wooden furniture business in Bangladesh, thanks to the availability of skilled labor, capital flow, and technological facilities, the industry faces significant hurdles. The discussion, jointly organized by HATIL and The Daily Star, took place at The Daily Star Centre in Dhaka.
Salim H Rahman, chairman of the Bangladesh Furniture Industry Owners Association (BFIOA), pointed out that while the popularity of wooden furniture is increasing, the industry relies heavily on imported raw materials such as quality wood and chemicals. This dependence on imports has put local producers at a disadvantage in terms of competition, as the production costs are high.
Salim H Rahman suggested that granting partial bonded warehouse facilities to the sector would boost furniture exports. Currently, local entrepreneurs cater to approximately 95 percent of the demand for wooden furniture.
The furniture industry in Bangladesh comprises over 40,000 small and large companies, making it a significant contributor to the economy. Despite the presence of more than 100 brands, including HATIL, Akhtar Furnishers, Partex, and Regal Furniture, non-branded cottage, micro, and small enterprises control around 65 percent of the Tk 30,000 crore market.
Employing around 2 million people, the furniture sector is the second-largest job provider in Bangladesh after the garments and textiles industry. Salim H Rahman, who is also the chairman of Hatil, identified the lack of foreign investment as a major challenge for the industry. Addressing these obstacles in a sustainable manner could transform the furniture industry into a key source of foreign income.
The furniture industry in Bangladesh has experienced a remarkable surge in exports, with a growth rate of over 100 percent in the past six years. In the fiscal year 2021-22, Bangladesh exported furniture to approximately 61 countries.
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According to a report by Spherical Insights, the global furniture market was valued at $548.38 billion in 2021 and is projected to reach $780.8 billion by 2030, with a compound annual growth rate of 5.1 percent. Currently, Bangladesh’s contribution to the global furniture market stands at 0.03 percent, according to BFIOA data.
Other speakers at the event included Amer Karim, CEO of Legato Design and Fabrication, Shah Alam Monshi, COO of Partex Star Group, Nazim Hassan Sattar, general manager of SME Foundation, and Abdus Samad Al Azad, joint secretary of the commerce ministry.
