Insight:
- Multiple factors drive the global furniture market and are on a strong growth trajectory.
- Due to consumer demand, the furniture sector is becoming increasingly diverse and innovative.
The furniture market is a wide range of industries that keeps expanding owing to consumer demand. This sector is crucial in the world’s economy, and as new trends develop across the continents, the furniture segment is also experiencing several updates.
Prominent market information and data
The global furniture market is steadily growing, projected to rise from $637.5 billion in 2024 to around $823.75 billion by 2029, achieving a compound annual growth rate (CAGR) of 5.25% during this timeframe.
Such growth is forecasted to continue, propelling the market beyond the threshold of a trillion hundred dollars by 2023, with factors including increasing levels of urbanization, enhanced availability of disposable incomes, and global growth of real estate development activities playing a vital role.
The Covid 19 has changed consumer behavior. Whereas at this specific time, there were no expenses as it was economically restrained, all kinds of commodities that included non-essential items such as furniture were equally not bought, reducing the demand.
Housing developments have, however, returned slowly after the pandemic, and there is a market for domestic appliances once more, which is why furniture demand is predicted to rise within the forecast period. Some notable market insights include:
- Residential furniture market: The furniture industry holds the largest market share and is experiencing significant growth, driven by increasing incomes and a growing urban population.
- Commercial furniture market: Experiencing consistent growth fueled by the rising demand for workspaces, entertainment options, and hospitality venues.
- Online shopping trend: Becoming more popular, it gives customers access to a larger variety of products and services.
- Sustainable development: The rising demand for eco-friendly and sustainable furniture encourages businesses to produce items that match these ideals.
Latest trends in the furniture market
The global furniture market is generally moving towards sustainability, personalization, and the integration of modern technologies. The market overall will be influenced and reshaped by the following key trends:
- Sustainability and eco-conscious practices: In today’s market, several furniture buyers are prioritizing the materials used in their purchases. There’s an increasing trend towards sustainable options such as bamboo, recycled wood, and similar materials. Environmentally conscious consumers are looking for low-impact products, prompting industries to implement eco-friendly manufacturing methods.
- Smart and multifunctional furniture: The development of smart technology, for instance, motorized lazy boy chairs and smart work desks, is changing customers’ demands. This is seen in the increased demand for modular forms and biophilic designs (i.e., designs incorporating natural elements in spaces). Such elements indicate the shifts in the design and usage of furniture with an emphasis on individualization and health.
- E-commerce expanding: The online furniture market is significant growth, driven by platforms that increase product visibility on a global scale. Consumers are enjoying the convenience of shopping for furniture online, with many manufacturers and retailers now offering virtual and augmented reality tools to help them envision how pieces will fit in their spaces.
- Office furniture segment growth: Flexible work arrangements, such as hybrid and remote work, have fueled the demand for modular office furniture that promotes wellness and comfort. Businesses are increasingly investing in ergonomic designs to improve employee health and productivity.
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Factors driving market growth
The furniture market is experiencing strong growth and development driven by various factors. Some of the prominent drivers include:
- Urbanization rising: Rapid urbanization is increasing and leading to the demand for residential and commercial furniture, especially in merging markets.
- Real estate sector expanding: Recent construction and renovation projects have greatly boosted the demand for furniture. Which encompasses offices, hotels, and retail spaces, is particularly at the forefront of this trend.
- The capita income is higher: Consumers in the Asia-Pacific region increasingly invest in high-quality furniture for their homes and offices, playing a major role in the sector’s growth.
- Innovations in technology: Smart furniture like automated recliners and adjustable desks caters to consumer desires for comfort and convenience, increasing demand.
It is not enough to think of furniture as only providing comfort during household activities like sleeping or eating; it plays an intrinsic role in the aesthetics of a home. Furthermore, the change in the way people shop for furniture has been influenced by the ability to buy furniture via the Internet without any facility.
A new dimension, that of interest in space-saving and appropriately designed furniture, which is largely portable and multifunctional has emerged to fuel the industry s growth. The phenomenon of nuclear families has made there an increasing need for mobile and space-efficient furniture designs across countries. This shift is expected to drive furniture demand even further.
Market information by region and distribution channel
With consistent economic expansion and growing consumer appetite, the Asia Pacific region is at the forefront of the furniture market. China, India, and Japan are noticeably dominant among the countries in this region.
The economic development and building of houses are also increasing. The furniture market in the region was worth $321.5 billion in 2023, projected to grow to $513.1 billion by 2032.
The market is also on an upward growth trajectory in North America, with the United States being the most active country. This market is driven by the demand for residential furniture, particularly due to homeownership and renovation trends.
The European market emphasizes luxury furniture and environmentally friendly practices, catering to sustainability-conscious consumers.
Regarding distribution channels, despite the e-commerce boom, traditional stores still dominate the market. Consumers prefer physical showrooms for furniture shopping, contributing to offline channels accounting for 83.8% of the market share in 2023. Online sales provide manufacturers with global reach, particularly in countries like India, where geographical limitations previously hindered sales.
Regarding product segments, the bed segment dominated the furniture market with a revenue share of over 25% in 2022. The shift in consumer preferences towards premium furniture products, driven by technological advancements in the home furnishing sector, is a key factor fueling the growth of the bed segment.
Furthermore, the increasing interest in achieving trendy bedroom styles has influenced major renovation projects and is expected to drive market growth.
The sofa and couch segment is projected to witness a CAGR of 7.1% from 2023 to 2030. In recent times, the increasing ownership of homes by millennials, which takes into account older homes in particular, susceptible to more refurbishing, has led to the global expansion of the sofa and couch generation.
HomeAdvisor’s research shows that millennials are engaging in more home enhancement endeavors with each passing year than any other demographic. This will, in all probability, stimulate growth in the market during the projected time interval.
Conclusion
The global furniture market is ready for high growth rates due to urbanization, increasing income levels, and technological advancement as influenced by changing consumer needs. Sustainability, custom-made products, and technologies form the future of the industry. As much as brick and mortar remains the most employed channel, the growth of e-commerce over the years has presented avenues for incorporating other markets within. Such companies will have good market opportunities to the extent they can read and respond to such changes in the market. Follow our blog for more market news and interesting information!
