Furniture Market Definition And Segments
Furniture refers to a collective term for the goods made up of wood, plastic, and rubber that are used in a room for sitting, lying down, or storing items, such as tables, seats, beds, desks, dressers, and cupboards. Unlike less expensive woods like plywood, particleboard, and fiberboard, hardwood tabletops, desktops, and shelves won't slump over time.
The main types of furniture are institutional and office furniture, household furniture, and kitchen cabinet, mattresses, blinds and shades. Household furniture refers to all mobile, compactable goods or machinery used to furnish a home, such as chairs, tables, sofas, mattresses, and so on. The different types of materials include metal, wood, others and is distributed through various channels such as exclusive showrooms, online, hypermarkets, others.
The furniture market covered in this report is segmented –
1) By Type: Institutional And Office Furniture, Household Furniture And Kitchen Cabinet, Mattresses, Blinds And Shades
2) By Type of Material: Metal, Wood, Other Materials
3) By Distribution Channel: Exclusive Showrooms, Online, Hypermarkets, Other Distribution Channels
Subsegments Covered: Institutional Furniture, Office Furniture, Household Furniture, Kitchen Cabinet, Mattresses, Blind And Shade
The furniture market size has grown strongly in recent years. It will grow from $752.22 billion in 2023 to $805.54 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to globalization of furniture manufacturing, economic growth and housing, sustainable and eco-friendly practices, demographic changes, rise of diy culture.
The furniture market size is expected to see strong growth in the next few years. It will grow to $1040.36 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to growing flexible and multifunctional designs, sustainable and circular furniture practices, wellness-oriented furniture, rental and secondhand furniture markets, focus on luxury and high-end furniture. Major trends in the forecast period include smart furniture integration, modular and customizable furniture, retro and vintage revival, biophilic design in furniture, multifunctional and space-saving designs.
Booming Real Estate Sector Anticipated To Fuel Furniture Market Growth
The increasing real estate industry is expected to propel the growth of the furniture market going forward. The real estate sector encompasses various facets related to properties, including their construction, renting, valuation, promotion, and administration, spanning across commercial, residential, agricultural, and industrial properties. In the commercial real estate sector, businesses require furniture for offices, hotels, restaurants, retail stores, and other commercial spaces. As new commercial properties are developed or existing ones are renovated, there is a continuous demand for commercial furniture, including office desks, chairs, and restaurant seating. For instance, in September 2022, according to Trade Arabia, a Bahrain-based online business news and information portal, the nation outlined its intentions to construct in excess of 555,000 residential units, around 275,000 hotel rooms, over 4.3 million square meters of retail area, and more than 6.1 million square meters of fresh office space, all anticipated to be completed by 2030. Therefore, the increasing real estate industry will fuel furniture market growth.
The Surge In Online Shopping Fuels Growth In The Furniture Manufacturing Market
Increasing demand for online shopping is expected to help the furniture manufacturing market grow. Manufacturers can now sell their products on a larger platform than before, which will increase their customer base geographically, driving the growth of the furniture manufacturing market. In countries such as India, for instance, e-commerce portals have boosted the sales of furniture manufacturers by giving larger exposure to producers who were confined to one geography.
Major companies operating in the furniture market report are Inter IKEA Group, Steinhoff International Holdings NV, Masco Corporation, Kohler Co., Leggett & Platt Incorporated, Tempur Sealy International Inc., Ashley Furniture Industries Inc., Hunter Douglas N.V., Man Wah holdings, Steelcase Inc., Herman Miller Inc., La-Z-Boy Inc., Okamura Corporation, HNI Corporation, JASON FURNITURE (HANGZHOU) CO.Ltd., Sleep Number company, Haworth Inc., American Woodmark Corporation, Heritage Home Group LLC, Hooker Furniture Corporation, Flexsteel Industries Inc., Bassett Furniture Industries Inc., Stickley Furniture Inc., L. & J. G. Stickley Inc., Global Furniture Group, Bernhardt Furniture Company, Kimball International Inc., Durham Furniture Inc., Vaughan-Bassett Furniture Company, LACQUER CRAFT MFG. CO. LTD.
Impact Of COVID-19 On The Furniture Manufacturing Market
The outbreak of Corona virus disease (COVID-19) has acted as a massive restraint on the furniture market in 2022 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in halting of manufacturing activities and a decline in economic activity with countries entering a state of 'lock down' and the outbreak had a negative impact on businesses throughout 2021 and into 2021. However, it is expected that the furniture manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Furniture Industry Leaders Embrace Sustainability With Innovative Transition Range Products
Major companies operating in the furniture market are focused on developing innovative products, such as transition ranges, to increase their profitability in the market. Transition range products are aimed at encouraging households to be more sustainable with their purchases by choosing longer-lasting items that can be used repeatedly. For instance, in September 2023, Inter IKEA Systems B.V., a Netherlands-based manufacturer and provider of wood-based furniture, launched three new collections as part of its Transitions range, which include Vivid Wonderland, Glorious Green, and Simple Serenity. The collections include items that create a feeling of tranquility and introduce elements of nature into the living space, such as gentle and natural fabrics, green decorative accents, and indoor plants.
Augmented Reality For Enhanced Sales Presentations And Customer Decision-Making
Furniture manufacturers are investing in augmented reality technologies to help sales representatives present their products and customers in decision-making. Augmented reality mobile applications allow customers to place a virtual 3D model of furniture in a real room in real-time. This also helps customers view the furniture from all angles and positions. For instance, IKEA’s augmented reality application Place allows customers to preview over 2,000 pieces of furniture at home before purchasing them.
Asia-Pacific was the largest region in the furniture market in 2023. Western Europe was the second largest region in the furniture market. The regions covered in the furniture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the furniture market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The furniture market consists of sales of commercial furniture, domestic furniture, wood, and plastic. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The furniture market research report is one of a series of new reports from The Business Research Company that provides furniture market statistics, including furniture industry global market size, regional shares, competitors with a furniture market share, detailed furniture market segments, market trends and opportunities, and any further data you may need to thrive in the furniture industry. This furniture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.