Ikea, the world's largest furniture retailer, is facing a global slowdown in sales, with retail sales declining over the past two years to 44.6 billion euros ($51.7 billion) in the financial year ended August 31, 2025, down from 45.1 billion euros in the prior year [1]. Europe remains Ikea's largest market, accounting for more than 70% of sales, followed by North America at 17% and Asia at around 9% [1]. In China, Ikea has responded to sharply slowing growth by closing seven large-format stores and shifting focus to smaller outlets, citing a weak housing market and intensifying competition from online retailers [1].
Despite these global challenges, Ikea is doubling down on India, which it considers a priority market. The company currently operates six stores in India and aims to expand to around 30 within five years, including a mix of large and small stores and pick-up points for online deliveries [1]. Patrik Antoni, CEO of Ikea India, emphasized the company's long-term commitment, stating, "India is a long-term market for us, and we are building with the next 100 years in mind" [1].
India's furniture and home décor market is valued at over $25 billion in 2024 and projected to reach $40.8 billion by 2033, according to IBEF. However, Ikea forecasts even faster expansion, expecting the market to hit $48 billion by 2030 [1]. The company is also leveraging the India-EU free trade agreement finalized on January 26, which could boost India's role as a production and export base within Ikea's global network [1]. Currently, 30% of Ikea India's sales come from locally sourced raw materials, a figure it aims to increase to 50% by 2030 [1].
Ikea's strategy in India is supported by rising domestic demand, export-friendly policies, and a growing local sourcing ecosystem. The market is dominated by smaller furniture and interiors players, with no domestic brand operating at Ikea's scale [1]. Housing sales in India have seen strong growth since the pandemic, with only a marginal slowdown in 2025, creating fresh opportunities for expansion [1].
CONCLUSION
Ikea is shifting its global strategy by prioritizing expansion in India, aiming to capitalize on the country's rapidly growing furniture market and favorable trade policies. While global sales have slowed and store closures are underway in China, Ikea's long-term vision for India signals optimism and potential for significant growth. The company's focus on local sourcing and export capabilities further strengthens its position in the Indian market.