Global Luxury Furniture Market Grows Steadily at a CAGR of 5.90%

Introduction

Luxury furniture is often composed of metal, glass, and wood, which comprise moveable pieces that exhibit their era's highest craftsmanship and design. They increase the visual appeal of indoor and outdoor locations such as residences, hotels, and workplaces. Growing discretionary money, globalization, and the massive urbanization of the world's population all contribute to the luxury furniture industry's success. In luxury furniture, businesses are concerned with minimizing their carbon footprints. Currently, enterprises provide ecologically friendly options. As technology develops, furniture designers become more original and creative. In addition, when searching for eco-friendly furniture, customers desire low toxicity to avoid harmful health effects.

Market Dynamics

Urbanization and Increasing Disposable Income Drives the Global Market

The use of high-end furniture is growing due to people's increased attention to aesthetics and urbane lifestyles brought on by urbanization and rising disposable incomes. Consumption will inevitably grow when households have more money available for either saving or spending due to an increase in disposable income. The market is growing more quickly due to rising disposable income in many significant countries worldwide and the increased availability of luxury furniture products, particularly those created in Italy and Germany.

Rising Demand for Premium and Designer Furniture Creates Tremendous Opportunities

Italian furniture is widely recognized as the most well-liked of its American and German counterparts, and high-end customers frequently identify strongly with the design and build of Italian furniture. Due to the need for more high-end indigenous furniture brands in countries like China and Indonesia, hundreds of global furniture players have entered the market and expanded. Good designs from these renowned interior designers are more prized because there is a niche market for expensive imported furnishings.

There is a significant trend toward furniture that is big on soft, comfortable sofas and chairs that allow for easy lounging since people spend more time together in their living spaces. Luxury furniture has been relatively popular in the mid-century style. Using yellow, light blue/turquoise and green to brighten areas are expected as the demand for clean, transparent colors rises.

Regional Analysis 

Asia-Pacific is the highest revenue contributor and is anticipated to exhibit a CAGR of 7.30% during the projection period. China's vast interior design industry meets a wide range of consumer needs. This includes endeavors to develop workplaces in China's corporate areas and includes individuals from diverse socioeconomic strata. While multinational corporations, for whom office design is crucial for meeting clients and partners, may request luxury European furniture and high-end lighting, small businesses looking to cut costs on office interior design may serve as customers and not need high-end, expensive furniture or lighting. Different interior design companies exist in China that specializes in lighting, flooring, doors, furniture, and wall paintings.

North America is anticipated to grow at a CAGR of 3.70% during the projection period. Buying that home results in a buying frenzy for everything required to furnish and decorate a new home. Thanks to macro events, the luxury landscape is gradually and fundamentally changing in favor of the latest luxury paradigm. Wealthy consumers are becoming more interested in fewer, higher-quality luxury items and worthwhile experiences. Luxury shoppers are prepared to pay a premium for the best luxury items that not only meet their needs but also improve their quality of life and the quality of life of others.

Key Highlights

• The global luxury furniture industry was valued at USD 36.60 billion in 2022. It is projected to reach USD 61.57 billion by 2031, growing at a CAGR of 5.90% during the forecast period (2023-2031).
• Based on product, the global luxury furniture market is bifurcated into lighting, tables, chairs and sofas, bedrooms, cabinets, accessories, and other products. The bedroom segment is the major contributor to the market and is estimated to exhibit a CAGR of 5.10% during the forecast period.
• Based on distribution channels, the global luxury furniture market is bifurcated into home centers, flagship stores, specialty stores, online, and other distribution channels. The specialty stores segment is the major contributor to the market and is estimated to exhibit a CAGR of 3.45% during the forecast period.
• Based on the end-user, the global luxury furniture market is bifurcated into residential and commercial. The residential segment is the major contributor to the market and is estimated to exhibit a CAGR of 5.70% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 7.30% during the forecast period.

Competitive Players

1. Brown Jordan International
2. Restoration Hardware
3. Kimball International Inc.
4. Knoll
5. Cassina Spa
6. Grayson Luxury
7. Lola Furniture
8. Duresta
9. JL&IC Furniture Co. Ltd
10. Muebles Pico
11. Nella Vetrina
12. Molteni Group

Recent Developments

Recent Developments

• October 2022- Linly Designs, an interior design and retail company based in Chicago, acquired Marge Carson, a California-based producer of handcrafted furniture. The Marge Carson furniture brand is well-known for its premium materials, proportionate forms, and textiles in the United States and worldwide.
• September 2022- The new outdoor collections, launched by Muebles Picó as part of an exhibition in Valencia, intended to purposefully blur the boundaries between indoors and outdoors by offering smooth, imperceptible transitions to the outside living and dining rooms.

Segmentation

1. By Product
   1. Lighting
   2. Tables
   3. Chairs and Sofas
   4. Bedroom
   5. Cabinets
   6. Accessories and Other Products
2. By Raw Material
   1. Wood
   2. Metal
   3. Plastic
   4. Other Raw Materials
3. By Distribution Channel
   1. Home Centers
   2. Flagship Stores
   3. Specialty Stores
   4. Online
   5. Other Distribution Channels
4. By End-User
   1. Residential
   2. Commercial