The outdoor furniture industry has seen significant growth in recent years around the world, driven by rising interest in outdoor living spaces and an increasing demand for durable and high-quality materials, especially teak material. Among the variety of woods used in outdoor furniture, teak stands out as one of the most desirable. So you may wonder how profitable a teak outdoor furniture business is. This demand has led to the rise of numerous teak outdoor furniture businesses, with many entrepreneurs eyeing the potential for profitability.
Now we’re going to explain the profitability of a teak outdoor furniture business and provide a guide on how to get started, as well as seek the best supplier and deal the best price.
Teak Outdoor Furniture Business Profitability
Like many businesses, the profitability of a teak outdoor furniture business depends on various factors such as sourcing, market positioning, marketing strategy, and pricing. However, teak furniture typically carries higher profit margins due to its premium nature.
Related: How Long Does Teak Furniture Last? The General Facts to Understand

1. High Demand and Premium Pricing
The demand for teak furniture continues to rise, particularly in markets where consumers value outdoor living spaces, such as North America, Europe, and parts of Asia. Teak furniture is often seen as a luxury item due to its longevity and aesthetic appeal, which allows businesses to charge premium prices. High-end customers are willing to invest in furniture that will not only enhance their outdoor spaces but also last longer.
2. Margins
How profitable is a teak outdoor furniture business can be seen from its margin side. Commonly furniture businesses can aim for a profit margin of 30-50% depending on the scale of operations, cost of raw materials, manufacturing processes, and selling channels (direct-to-consumer, wholesale, etc.). Given teak’s high value, these margins can be even higher, especially when dealing with bespoke or handcrafted pieces.
3. Lower Competition in High-End Segment
While there is competition in the furniture market, the high-end teak segment remains relatively niche. Many competitors in the outdoor furniture market focus on cheaper materials like plastic, aluminum, or low-cost wood. By focusing on premium teak products, a business can differentiate itself and cater to a specific premium target market.
Related: What’s the Difference Between Teak Grade A, B, and C: Identifying the Right One for You
How To Get Started
Once u know how profitable is a teak outdoor furniture business, now it is time to learn important steps to get started, from seeking trusted suppliers and marketing your products.
1. Research the Market
Before diving into the business, it’s essential to research your target market. Understand the demographics of your ideal customers, their preferences, and purchasing power. Are they homeowners looking to upgrade their outdoor spaces, or businesses like hotels and resorts seeking to furnish large outdoor areas? Research the competitive landscape and identify gaps in the market where you can position your brand.
2. Develop a Business Plan
A solid business plan will outline your goals, target audience, product range, marketing strategies, and financial projections. It should cover the cost of sourcing teak, manufacturing, labor, marketing, and logistics. A well-thought-out business plan not only keeps you on track but also helps attract investors or secure loans if needed.
3. Sources of High-Quality Teak
The quality of your teak will determine the durability and appeal of your furniture, so if you want to produce your product by yourself (internal manufacturing), sourcing the right materials is important. Look for teak suppliers that provide sustainably sourced wood from well-managed forests. Many consumers today are environmentally conscious and prefer products that contribute to sustainable forestry practices.
One of the best teak suppliers is CV. Mutiara Jepara Indofurni. If you’re not manufacturing the furniture in-house, it’s important to partner with a reliable manufacturer who can produce high-quality teak products consistently. It is an Indonesia-based furniture manufacturer known for its high-quality furniture. As a wholesale supplier and international exporter, they offer a wide range of both modern and classic teak outdoor furniture, making them an ideal partner for new businesses. So get ready to start a teak outdoor furniture business.