Industry Outlook

The global market for furniture is expected to reach US$ 864.93 Bn by 2030, expanding at a CAGR of 4.6% during the forecast period from 2023 to 2030. North America dominated the global furniture market in 2021, followed by Europe. However, Asia Pacific is identified as the fastest growing market for furniture during the forecast period.

Furniture is referred to portable objects that are intended to support human activities. They are made from a variety of materials that include wood, metal and plastic among others. Furniture contributes directly in improving the aesthetic value of homes and offices. The demand for various types of furniture has showcased tremendous growth over the past decade due to the growth of the construction sector all across the globe. For instance, the real estate industry in India is considered to be one of the most recognized sectors across the globe. Rising demand for office spaces and urban & semi-urban accommodations are some of the key drivers of the real estate sector in the country. According to the India Brand Equity Foundation (IBEF), the real estate sector in India expected to generate approximately US$ 200 Bn by 2021. These factors are greatly contributing to the growth of the furniture market in the country.

Moreover, the rising trend of home renting among millenials has resulted in the emergence of several furniture manufacturers who prefer in renting out their furniture. Rising home prices, growing student debts, and delay of millenials in starting a family has resulted in the purchase of homes being a low priority among this particular segment of population. This trend is prominent in the U.S. where more than 35% of the household heads rented their homes in 2020. Further, increasing number of single person households has paved the way for smaller homes that call for multi-functional, and space-saving furniture. These factors have greatly contributed to the growth of the furniture market. However, there is a prominent trend for pre-owned furniture, where price sensitive consumers usually prefer to buy pre-owned products, which is a key factor barring the growth of the furniture market.  

Based on Material, Wood is Expected to Continue Leading the Global Furniture Market in the Coming Years

Based on material, the global market for furniture was dominated by wood in 2021 and the segment is expected continue leading the furniture market throughout the forecast period. Growth in the real estate sector is high contributing to the growth of wood furniture across the globe. Moreover, changing lifestyle pattern of the millenials, rapid urbanization and longevity of baby boomers have augmented demand for wooden furniture. The wood segment is further bifurcated into softwood and hardwood, where the latter had a greater contribution to the total revenue of the furniture market in 2021. U.S. is a key market for wooden furniture, with growing demand for imports. Further, demand for wooden furniture in Europe is one the rise on account of growing demand for ethnic-design furniture for living rooms and bedrooms, small accent items and several ready-to-assemble products among others. Further, high demand for multi-functional and space saving furniture is also contributing to the growth of the wood furniture market in Europe. Moreover, demand for plastic furniture is also gaining significant traction in the market owing to their low cost, and they are particularly famous in countries in Asia Pacific.

Online Channels, Based by Distribution Channel is Expected to Display Robust Growth in the Coming Years

Based by distribution channel, the online segment is expected to display the fastest growth during the forecast period from 2023 to 2030. Several companies are putting extra efforts on expanding their online channel network, by incorporating various benefits for consumers such as easy delivery and installation, same day delivery/pick-up and various others. Moreover, the growing trend of furniture rental is another key factor contributing to the growth of the online segment. Homeowners, with limited budget can rent their desired furniture through dedicated websites and it also takes a minimal toll on their pockets. Further, the manufacturers operating in the furniture industry also developed dedicated mobile apps that made purchase and renting of furniture much easier for the consumers, as they can browse and shop for such products through their smartphones.

North America Expected to Continue Dominating the Furniture Market During the Forecast Period

The global market for furniture is dominated by North America in 2021, followed by Europe. Both these regions are expected to retain their respective positions throughout the forecast period. U.S. is considered to be one of the most important markets for furniture, especially wooden. Furniture imports in the U.S. has grown rapidly over the past few years, especially for bedroom furniture, living/dining room furniture, and kitchen furniture among others. Moreover, demand is also rising for occasional furniture such as wall stands, accent pieces and various others. The demand for such products rely heavily on imports as these types of furniture are easy to ship and can easily be made available in newer designs. Moreover, the growing number of single households in the country is another factor contributing to the growth of the furniture market. In 2020, more than 25% of the households were reported to be single person households and this trend is expected to rise significantly over the next decade. This trend has given rise to space saving and multi-functional furniture.

Asia Pacific is expected to display the fastest growth during the forecast period with China, India and Japan expected to display promising growth in the coming years. Changing need and preferences of the consumers in Japan has given rise to increased imports of furniture in the country. Furniture imports are expected to grow in the coming years as consumers are focusing more on the quality of the product rather than using price as the major criteria. Demand for furniture, especially wooden furniture in the country has become more diversified as consumers are seeking products that would suit their individual lifestyles, including design and color preferences.

Expansion is a Key Strategy for Companies Operating in the Furniture Market

Key players operating in the global furniture market include IKEA, Williams-Sonoma Inc., Durham Furniture Inc., Ashley Furniture Industries, Steelcase, Kinnarps, AFC Systems, Creative Wood, Wipro Furniture, and Godrej Industries among others.

In August 2021, IKEA, one of the largest players operating in the furniture industry opened up a 400,000 square feet store in Hyderabad, India. This expansion was a result of the growing demand for various types of furniture in the country. Further, IKEA is also planning to open up 25 new stores in India by 2025, which would create a strong base for the company in the country. Further, in 2021, IKEA also marked its maiden presence in Latvia, and expanded its presence in U.K., North America, Middle East and Asia Pacific. 

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Furniture market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Furniture market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Furniture market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Furniture market?
• Which is the largest regional market for Furniture market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Furniture market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Furniture market worldwide?