Furniture exports decline amid rising costs, policy gaps

Bangladesh's furniture export earnings have been on a steady decline over the past several years, mainly due to lower competitiveness, lack of proper certifications, and inadequate country branding, industry insiders said.

They attributed the downtrend to rising production costs, absence of supportive government policies, and recent trade complications with major markets like India.

According to the latest data from the Export Promotion Bureau (EPB), furniture export earnings fell slightly by 0.37 per cent in the last fiscal year (FY 2024-25) to $45.53 million, down from $45.70 million in FY 2023-24.

This marginal drop follows a sharper downward trend in previous years. Furniture exports stood at $110.36 million in FY 2021-22 before plunging to $52.65 million in FY 2022-23 -- a fall of more than 50 per cent in a single year.

Presently, the size of the domestic furniture market is estimated at Tk 300 billion, with the sector employing around 2.5 million people, according to sources.

There are 22 members affiliated with the Bangladesh Furniture Exporters Association that represents the exporters while there are over 500 members formally registered with the Bangladesh Furniture Industries Owners Association (BFIOA).

Exporting brands such as Hatil, Otobi, Regal, Navana, Akhtar, Partex, and HI-TECH primarily ship their products to China, India, Nepal, the United States, the European Union, and Canada, according to the EPB.

Kamruzzaman Kamal, Director (Marketing) of Pran-RFL Group, which exports Regal brand of furniture, said Bangladeshi exporters' competitiveness has declined due to instability in the global economy.

"Most of the raw materials and accessories used for making furniture are brought from abroad, and import duties on some of the items are as high as 90 per cent," he said.

"Apart from the lower competitiveness, Bangladesh's furniture export to a major destination like India almost remains halted in recent months following the latter's restriction on entry of Bangladeshi goods," said Mr Kamal.

BFIOA Chairman Selim H. Rahman said currently they can use only Benapole land port to export merchandise to India, leading to higher cost for the consumers in distant regions.

Regarding shrinking competitiveness, he identified the increased cost of dollar in the recent years, andthe  higher cost of imported materials as the key reasons.

"Import duties on some accessories are unusually high, as the country's policy considers them luxury items," he said, explaining that this seriously takes a toll on the sector, which exports after adding local value to the imported materials.

Underscoring the urgent need for policy support for the sector as it can play a vital role in the much-talked-about export diversification, he said they should be granted import duty concessions on raw materials, similar to those provided to the apparel sector.

"Providing bond facility for the sector is also important," said Mr Rahman, who is also the Managing Director & Chairman of the country's leading furniture brand HATIL.

He added that they are prepared to accept any penalties imposed by the government in case of non-compliance with the rules governing bond facilities.

Although export diversification is a widely discussed issue in the country, equal facilities are not provided to potential sectors like furniture, he said.

According to global think tank Grand View Research, the global furniture market size was estimated at $745.65 billion in 2024 and is projected to reach $1,334.08 billion by 2033, growing at a CAGR of 6.8 per cent in the forecast period from 2025 to 2033.

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