Cambodia’s Furniture Market Set to Surge from US$100m to Over US$1bn by 2033

• 22 April 2024
• Local News
• 1657 Views

The Cambodian furniture market, though relatively small, is primed for substantial expansion in the coming years, with exports projected to soar to US$1.484 billion by 2033, as outlined in “The Cambodia Furniture Industry Research Report 2024-2033” published by finance.yahoo on 17 April 2024.

Despite a slight downturn in 2023, Cambodia’s furniture manufacturing sector has exhibited remarkable growth over the past five years, with exports surging from US$419 million in 2019 to US$890 million in 2023, reflecting a notable Compound Annual Growth Rate (CAGR) of 20.7% during the period.

The driving force behind this growth trajectory predominantly stems from export activities, with the country’s furniture export value anticipated to reach approximately US$890 million in 2023, albeit experiencing a slight decline of 6.18% compared to the previous year. Notably, custom furniture companies such as Zhi Bang Furniture and Sofia have expanded their presence by establishing retail outlets across Southeast Asian nations like Vietnam, Thailand, the Philippines, and Cambodia.

While Cambodia’s furniture industry benefits from abundant raw materials and competitive labour costs, it faces mounting pressure from rising operational expenses. The recent increment in the minimum monthly wage to USD 200 in 2023 and further to USD 204 in January 2024 underscores this challenge, albeit the figures remain higher than neighbouring countries like Vietnam and Laos.

With its vast forest resources and over 60% forest coverage, Cambodia possesses a conducive environment for furniture industry growth, boasting timber reserves of approximately 1.1 billion cubic metres. The ongoing industrial shifts in the global furniture landscape present favourable opportunities for Cambodia’s furniture sector.

• Business and Market
• Economy and Finance