Global Outdoor Furniture Market Grows at a Staggering CAGR of 5.5%

Introduction

The worldwide outdoor furniture market is witnessing substantial expansion, propelled by the increased popularity of outdoor living areas, increasing disposable incomes, and an escalating interest in home enhancement and aesthetic projects. Consumers aim to establish comfortable and elegant outdoor spaces, creating heightened demand for robust, weather-resistant, and visually appealing furniture. The market is transitioning towards sustainable materials and multifunctional designs, addressing the changing preferences of environmentally aware consumers.

Moreover, technological innovations facilitate the incorporation of intelligent elements into outdoor furniture, improving user convenience and enjoyment. Innovations like solar-powered lighting, integrated USB charging outlets, and modular designs convert patios and gardens into technology-enhanced lifestyle areas, enhancing outdoor spaces' functionality, connectivity, and aesthetic appeal year-round.

Market Dynamics

Rising demand for outdoor living areas drives market growth

The increasing focus on outdoor living areas is a major catalyst for the outdoor furniture industry in 2025. Consumers are investing in patios, decks, and gardens to establish supplementary living spaces for leisure and enjoyment. This trend has been expedited by lifestyle modifications and the preference for open-air settings, resulting in heightened outdoor furniture sales that amalgamate comfort, durability, and aesthetics.

• In May 2025, a survey by Woodbury Furniture in Australia indicated that balconies substantially enhance apartment values, with Brisbane seeing a 46.4% increase, averaging roughly $400,000 more. This highlights the importance of outdoor living areas and the associated demand for high-quality outdoor furniture.

The popularity of outdoor kitchens, fire pits, and lounge areas enhances the demand for adaptable and high-quality outdoor furnishings. Home construction specialists observed the rising popularity of outdoor kitchens, highlighting the trend towards multifunctional outdoor regions.

Growth in developing markets creates tremendous opportunities

Emerging markets provide significant development prospects for the outdoor furniture sector. The escalation of urbanisation, the augmentation of disposable incomes, and the expansion of the middle class in nations throughout Asia, Latin America, and Africa are propelling the need for outdoor living products. Countries such as China and India are witnessing an increase in demand for outdoor furniture as urban residents aspire to establish private retreats within their houses. Moreover, developing e-commerce platforms enhances market penetration and accessibility, allowing enterprises to engage a wider client base. Brands that utilise digital marketing methods and provide personalised shopping experiences will likely secure a greater market share.

• For example, IKEA has declared its ongoing expansion in India by inaugurating new stores and enhancing its online and omni-channel presence. The Swedish furniture conglomerate allocated more than USD 1.5 billion for investments to improve operations in prominent metropolitan centres, including Bangalore, Mumbai, and Hyderabad, intending to introduce further shop styles in Tier 2 cities by 2025.

Manufacturers can leverage these trends by providing cost-effective, resilient, and aesthetically pleasing furniture designed to meet the preferences and climates of these areas.

Regional Analysis

North America is at the forefront of the global outdoor furniture industry, propelled by a robust outdoor living culture, substantial consumer expenditure, and advantageous climatic conditions. The existence of established producers and a strong distribution network further strengthens the market in this region. The expansion of the hospitality sector, encompassing hotels, resorts, and restaurants, has heightened the demand for commercial outdoor furniture. The trend of home enhancement and the appeal of al fresco eating persist in facilitating market growth in North America. Retailers adapt by providing various products that address varied consumer demands, encompassing sustainable materials and multifunctional designs. Incorporating intelligent features, such as integrated lighting and charging connections, is increasingly popular, improving user convenience and pleasure. The North American outdoor furniture market is set for sustained growth as consumers strive to establish comfortable and fashionable outside spaces.

Key Highlights

• The global outdoor furniture market size was valued at USD 53.27 billion in 2024 and is projected to grow from USD 56.00 billion in 2025 to USD 81.44 billion by 2033, exhibiting a CAGR of 5.5% during the forecast period (2025-2033).
• By Product Type, the market is segmented into seating sets, loungers, dining sets, chairs, tables, and other products. Dining sets hold the largest share in the product segment, accounting for 31.6% of the market in 2024.
• By Material Type, the market is segmented into wood, metal, plastic, and other materials. Wooden outdoor furniture leads the material segment, capturing 47.7% of the market in 2024.
• By End-User, the market is segmented into residential and commercial. The residential segment dominates the end-user category, accounting for 62.0% of the market in 2024.
• Based on region, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

The key players in the global market are Ashley Furniture Industries, Inc., Brown Jordan International, Inc., Century Furniture LLC, Forever Patio, Gloster Furniture Ltd., Home Depot Inc., Inter IKEA Systems B.V., Keter Plastic Ltd., La-Z-Boy Inc., Lloyd Flanders Industries, Inc., Manutti N.V., Polywood LLC, Royal Botania NV, Steelcase Inc., Summer Classics, Inc., and others.

Recent Developments

• In May 2024, Australian furniture retailer Nick Scali entered the UK market by acquiring Anglia Home Furnishings, trading as Fabb Furniture.The company plans to rebrand the 21 Fabb Furniture stores as Nick Scali, establish a new distribution centre, and open new stores, marking a significant step in its international expansion strategy. 
• In January 2024, Twin Star Home, a prominent player in indoor and outdoor home furnishings, acquired Grand Basket, known for its premium outdoor patio furniture and accessories in the North American market.This acquisition aims to expand Twin Star Home's product offerings and strengthen its position in the outdoor furniture segment. 

Segmentation

1. By Product Type
   1. Seating Sets
   2. Loungers
   3. Dining Sets
   4. Chairs
   5. Tables
   6. Other Products
2. By Material Type
   1. Wood
   2. Metal
   3. Plastic
   4. Other Materials
3. By End-User
   1. Residential
   2. Commercial
4. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa