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Ikea is turning its focus toward India as global growth slows, viewing the country not only as a major retail opportunity but also as a strategic export base. Supported by the India‑EU free trade agreement finalized in January, the company is doubling down on local sourcing and store expansion to capture rising domestic demand.

Patrik Antoni, CEO of Ikea India, described the country as a “priority market” in a recent interview. Currently operating six stores, Ikea plans to open three to four additional small-format outlets in the coming months and aims to establish 30 customer meeting points across India within five years. The company’s long-term vision includes both large-format stores and pick-up points to enhance online and offline integration.

India already contributes significantly to Ikea’s global operations, with 30% of its sales coming from locally sourced products. The company aims to increase this figure to 50% by 2030, creating a robust domestic production ecosystem aligned with export-friendly policies. Antoni emphasized that India is “a long-term market for us, and we are building with the next 100 years in mind,” noting that the India-EU trade pact reinforces the country’s potential as a production and export hub.

The Indian furniture and home décor market, valued at over $25 billion in 2024, is projected to reach $40.8 billion by 2033. Ikea, however, expects even faster growth, forecasting the market to hit $48 billion by 2030. This rapid expansion comes as global sales for Ikea have slowed, with revenue declining to 44.6 billion euros ($51.7 billion) in the financial year ending August 2025, down from 45.1 billion euros the previous year. Europe remains the dominant region, contributing over 70% of sales, followed by North America at 17% and Asia around 9%.

In China, growth has slowed sharply due to a weak housing market and intensifying online competition, leading Ikea to close seven large-format stores in favor of smaller outlets. In contrast, India presents a unique opportunity: the market is fragmented, dominated by smaller local players, and housing sales have rebounded since the pandemic. Ikea India’s revenue rose 6% in the financial year ending August 2025, with furniture leading sales, and EBITDA, excluding fixed costs, improved by more than 10%.

Ikea’s expansion strategy prioritizes six key urban markets: Mumbai, Delhi National Capital Region, Bengaluru, Hyderabad, Pune, and Chennai. Its newest large-format store opened in Pune earlier this month, while the Lykli concept—a multi-purpose space combining retail, entertainment, and community areas—is slated for Gurugram and later Noida in North India. Offline outlets remain critical, accounting for 70% of sales, compared with 30% from e-commerce.

Looking ahead, Ikea expects India to become a profitable market by its financial year ending August 2028. Antoni highlighted that nearly 110 million customer interactions were recorded last year, reflecting growing engagement and opportunities for revenue capture. With ambitious store openings, strengthened local sourcing, and an eye on exports, Ikea is positioning India at the center of its global growth strategy amid broader market challenges.