How sustainability became the core factor over the years for Indian Furniture industry?

In recent years, India’s furniture industry has started its journey of fundamental transformation, driven by shifting consumer preferences, technological advancements, increasing participation of organized players, and a growing emphasis on sustainability. Once characterized by traditional craftsmanship, the industry has evolved into a dynamic sector where nuances such as sustainability are influencing consumer choices and thus business practices.

The Rise of Sustainability in India’s Furniture Industry:

Consumer Awareness and Demand: Historically, India’s furniture market was steeped in tradition, prioritizing craftsmanship, aesthetics, and durability over sustainability concerns. Due to the easy availability of a few materials such as bamboo, rubberwood, rattan which are sustainable in themselves, access to sustainable furniture was always available. But the popularity of these materials has been driven more with economical options rather than sustainability focus. Which is what is changing now.

With a burgeoning cohort of younger consumers wielding greater influence over purchasing decisions, there has been an unmistakable surge in demand for eco-conscious and ethically sourced furniture. Millennials and Gen Z, in particular, are at the vanguard of this sustainability movement, catalysing a shift towards more responsible consumption patterns. According to a survey by Nielsen, 73% of millennials are willing to pay more for sustainable goods, reflecting a growing appetite for environmentally friendly products. This trend has not gone unnoticed by Indian furniture manufacturers, who are increasingly pivoting towards sustainable methodologies to cater to this burgeoning market segment.

REHAU has worked on several initiatives covering entire value chains and global markets with significant focus on reducing the environmental footprint. One such example is circular economy related initiatives, which take the end-to-end product approach and connect customers to recycle products at end-of-life. That philosophy has to be implemented starting from the product design stage itself.

Government Initiatives and Regulations: The Indian government has introduced various policies and initiatives to promote sustainability across industries, including the furniture sector. These measures include incentives for eco-friendly manufacturing practices, subsidies for renewable energy sources, and regulations to curb deforestation and promote responsible sourcing of wood and other materials. Moreover, increasing environmental regulations and certifications have spurred Indian furniture manufacturers to pivot towards sustainable methodologies.

Government in its own procurement has been advocating for eco-friendly products further catalysing this transition. A key example from REHAU’s offerings would be the products such as Radiant heating cooling systems which use significantly less energy than traditional cooling systems. They offer increased comfort and consume less energy for heating and cooling.

Innovation: The integration of sustainable materials and practices has emerged as a distinguishing feature of leading furniture brands in India. From using recycled materials and eco-friendly coatings to implementing energy-efficient manufacturing processes, technology plays a crucial role in driving sustainability in the industry.
According to a study by the Indian Green Building Council (IGBC), the use of sustainable materials such as recycled wood and bamboo has witnessed a significant uptick in recent years, with many manufacturers embracing eco-friendly manufacturing techniques such as water-based finishes and zero-waste production. REHAU’s steps in this direction include designing products where sustainable materials are used. For e.g., REHAU uses materials such as PP and ABS which are non-hazardous, recyclable and long-lasting in dynamic weather conditions. The manufacturing of pipes is done using high-density cross-linked polyethylene promising long-term stability. This is in addition to significant focus on scrap elimination by scrap reduction as well as reuse.

Industry Collaboration and Certification: Collaboration among industry stakeholders, including manufacturers, suppliers, retailers, and consumers, is essential for promoting sustainability in the furniture sector. Certification programs such as Forest Stewardship Council (FSC) certification for sustainable wood sourcing and Leadership in Energy and Environmental Design (LEED) certification for green buildings help companies demonstrate their commitment to sustainability and differentiate their products in the market. With presence of matured global players such as Ikea, which is focusing on various initiatives such as replacement part availability for increasing lifespan of furniture to building local supply chains with global know-how, the envelope will only be pushed forward from hereon.

In addition to environmental considerations, social sustainability has emerged as a focal point for the Indian furniture industry. Ethical sourcing of raw materials, the promotion of fair labour practices, and the empowerment of local artisans and communities are increasingly prioritized by industry stakeholders. By championing transparency and accountability across the supply chain, companies are endeavouring to effectuate positive social change while burnishing their brand reputation.

Impact and Future Outlook:

The integration of sustainability into India’s furniture industry has had far-reaching implications, ranging from environmental conservation and resource efficiency to social welfare and economic development. By adopting sustainable practices, companies can reduce their carbon footprint, minimize waste generation, and contribute to the preservation of natural resources.

Looking ahead, sustainability is expected to remain a key driver of growth and innovation in the Indian furniture industry. As consumer awareness continues to grow and regulatory pressures increase, companies will need to invest in sustainable solutions and adapt to changing market dynamics to stay competitive.

In summation, sustainability has become an integral part of India’s furniture industry, shaping business strategies, product development, and consumer preferences. By embracing sustainability, companies can not only address environmental challenges but also create value for stakeholders and contribute to the country’s sustainable development goals. With concerted efforts from all stakeholders, India’s furniture industry can continue to thrive while safeguarding the planet for future generations.

Authored By Mr. Faiz Ahmed, MD, REHAU India