Furniture Market

Market Overview

The global furniture market was valued at USD 710.09 billion in 2023. It is estimated to reach USD 1,064.38 billion by 2032, growing at a CAGR of 5.3% during the forecast period (2024–2032).

Surging urbanization primarily boosts the global furniture market as more people migrate to urban areas, which creates demand for new houses and leads to growth in the construction industry. The growing tourism and hospitality sector is also estimated to boost the demand for furniture from the commercial industry. Moreover, the market players are integrating smart technologies into furniture to enhance the efficiency of different types of furniture, which is anticipated to create opportunities for market expansion.

Highlights

• Beds dominate the product type segment
• Wood dominates the material segment
• Residential dominates the end-user segment
• Asia-Pacific is the highest shareholder in the global market

Furniture includes movable products designed to facilitate a range of human activities, including seating (e.g., chairs, sofas), eating (e.g., tables), and sleeping (e.g., beds). It may also encompass items such as cabinets, shelves, and other fixtures that enhance a given area's functionality and visual appeal. Furniture is commonly crafted from wood, metal, plastic, or a blend of these, and it can be tailored for indoor and outdoor applications.

Furniture fulfills practical functions by offering comfort, storage, and organization while playing a crucial part in interior design and decoration. The aesthetics, arrangement, and furniture placement significantly impact the overall ambiance and atmosphere of a residential or professional environment. The growth of furniture design has been influenced by various cultures and historical times, leading to various designs and forms.

Market Dynamics

Global Furniture Market Drivers

Rising Urbanization and Construction Industry

Urbanization frequently increases the demand for housing as more individuals move to cities for employment and improved living standards. The need for furniture arises due to the construction of new residences or the renovation of existing ones to cater to the expanding urban population. As per the UNCTAD, a rising percentage of the global population resides in urban areas. The urban population accounted for 52.5% in 2012, which rose to 56.9% in 2022. As per the United Nations, the population is projected to reach 68% by 2050.

Consequently, the increasing urbanization is resulting in an expansion of the construction sector. Significant capital has been allocated to the construction sector in recent years. According to Oxford Economics, the global construction industry is projected to grow by USD 4.5 trillion, or 42%, reaching a total value of USD 15.2 trillion by 2030. Moreover, it is projected that China, India, the United States, and Indonesia will contribute 58.3% of the overall expansion in the construction industry between 2020 and 2030. Therefore, these aspects are anticipated to enhance the global furniture market.

Growing Tourism and Hospitality Industry

The growing tourism and hospitality sector drives the furniture market, which necessitates furniture for hotels, restaurants, resorts, and similar establishments. The tourism and hospitality sector is seeing growth due to rising disposable income, evolving travel habits, and the global integration of individuals. As per the World Travel & Tourism Council (WTTC), the travel and tourism industry has experienced a strong recovery, reaching the same levels as before the pandemic. This has resulted in a total revenue of USD 10 trillion by the end of 2023, with projections indicating that it would grow to become a USD 15 trillion economy over the next decade. The tourism and hospitality sector requires furniture that is both comfortable and durable while also being visually appealing. Moreover, the furniture should be customized to match the overall concept and atmosphere of the establishments.

Global Furniture Market Restraint

Environmental Concerns and Regulations

The furniture market is constrained by the environmental concerns and laws associated with the manufacturing and usage of furniture. The production of furniture entails the utilization of raw materials such as wood, metal, plastic, and other substances, which give rise to environmental consequences such as deforestation, greenhouse gas emissions, trash generation, and pollution.

The practice of purchasing furniture also entails disposing of old and undesirable furniture, contributing to the environmental load. Various regulations and standards, including the European Union Timber Regulation, the California Air Resources Board Formaldehyde Emission Standards, and the International Organization for Standardization, regulate the global furniture market. These regulations and standards are designed to guarantee the sustainability and safety of furniture products. These issues hinder the global market.

Global Furniture Market Opportunities

Introduction of Smart Furniture

The incorporation of technology into furniture, including smart beds, sofas, and tables, is currently experiencing a surge in popularity. Consequently, market participants are progressively introducing smart furniture. For instance, in July 2023, Ebarza unveiled its distinct line of smart furniture pieces. The furniture pieces are carefully designed to combine mechanical innovations with elegant aesthetics, optimizing space utilization and providing versatile functionality in a single, adaptable unit.

In November 2023, Living Spaces, a well-known furniture company, and Diamond Mattress introduced the Adaptive Sleep smart bed, representing a significant advancement in sleep technology. The partnership between Living Spaces and Diamond Mattress has led to the creation of the Adaptive Sleep mattress, which combines cutting-edge body-sensing technology with integration into a mobile application. This technology seeks to improve sleep quality by adjusting to the unique patterns of each individual's sleep. Furthermore, the mattress can be paired with an adjustable foundation to provide a customized comfort level. As a result, these new product launches are expected to generate opportunities for market expansion.

Regional Analysis

Based on region, the global furniture market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global furniture market shareholder and is expected to expand substantially during the forecast period. The region is experiencing the most rapid growth in the global market due to its significant demand for furniture items. This demand is robust in China, India, Japan, and Australia, emerging as key furniture market players. The Asia-Pacific region is projected to experience a significant increase in construction spending throughout the forecast period due to fast urbanization and population growth. The Asia-Pacific capital project and infrastructure industry is expected to grow annually from 7% to 8% over the next ten years, reaching around USD 5,300 billion by 2025. This market will account for nearly 60% of the global market. Moreover, a concurrent increase in disposable income has augmented consumer spending power. Euromonitor reports that in 2021, consumer spending in the Asia Pacific region represented 29% of the global consumer market. This percentage is projected to increase to 38% by 2040 when adjusted for inflation based on 2021 prices. The regional consumer market is projected to reach USD30.6 trillion by 2040.

Furthermore, prominent companies in the furniture sector are launching technologically sophisticated furniture that incorporates smart functionalities. For instance, in March 2023, Godrej & Boyce, the main firm of the Godrej Group, announced the introduction of their latest innovation in smart mobile storage, called 'Optimizer Plus,' by their business, Godrej Interio. The company is a prominent brand in India that offers furnishing solutions for homes and institutions. Godrej Interio offers a transportable storage alternative that is both easy to use and tastefully built, enhancing its existing collection of ergonomic institutional furniture. The storage option is aesthetically pleasant. The product is designed to incorporate seamlessly into any customer's preferred office configuration. Therefore, the combination of these elements together contributes to the expansion of the market.

The North American furniture market is primarily influenced by the affluent financial resources, consumer expenditure, and lifestyle preferences of the region's inhabitants. These individuals seek top-notch, ergonomic, and aesthetically pleasing furniture for their residences, workplaces, hotels, and other establishments. Moreover, numerous prominent companies in the furniture sector have consolidated their presence in the region. For instance, Coco Republic, a company with physical stores and online retail channels in Australia and New Zealand, a flagship store in San Francisco, and a promotional website in the U.S., launched a complete e-commerce store in the United States in May 2023.

Similarly, in August 2023, H&M Home expanded its presence in the United States by introducing its affordable furniture collection, including items for children, to the American market. The original items of the collection, such as the rattan dining chair and solid mango wood side table, can now be purchased online and at the brand's U.S. stores. Therefore, these factors accelerate the expansion of the market.

Segmental Analysis

The global furniture market is bifurcated into product type, material, and end user.

Based on product type, the global furniture market is segmented into beds, tables and desks, sofas and couches, chairs and stools, cabinets and shelves, and others.

The beds segment dominates the global market. A bed is a furnishing utilized to sleep or rest. A standard bed comprises a mattress supported by a bed frame, frequently accompanied by a headboard and footboard. Bed sizes vary to cater to diverse needs and preferences, including twin, full, queen, and king. Beds serve as a focal point in bedroom decor, and their appearance and fashion can greatly differ, spanning from conventional to contemporary, contingent upon individual preference and the overall visual appeal of the bedroom.

Moreover, market leaders are launching innovative beds with smart functionalities. For instance, in April 2023, Sleep Number Corporation, a leading company in wellness technology, announced the release of its latest generation of Sleep Number® smart beds and Lifestyle Furniture. This is expected to fuel the growth of the segment.

Based on material, the global furniture market is bifurcated into wood, metal, glass, plastic, and others.

The wood segment contributed to the largest market share. Wood furniture encompasses furniture pieces that are primarily crafted from wood. Wood is the predominant raw material utilized in furniture manufacturing due to its inherent benefits, including its natural aesthetic appeal, long-lasting nature, adaptability, and low maintenance requirements. Different varieties of timber, including hardwood, softwood, and engineered wood, can be utilized in furniture production, each possessing distinct attributes.

Furthermore, the market participants are launching novel wood-based goods, consequently propelling the expansion of this group of products. For instance, in June 2023, Wooden Bazar, a well-known producer of high-end furniture, is pleased to announce the much-awaited release of its newest collection of wooden furnishings. This exclusive collection features a diverse selection of intricately designed items, spanning from enduring classics to modern works of art, intended to enhance the refinement and sophistication of any living area.

Based on end-users, the global furniture market is bifurcated into residential and commercial.

The residential segment owns the highest market share. Residential furniture encompasses furniture utilized by homes for activities such as living, dining, sleeping, and other domestic reasons. The residential segment can be further classified into distinct categories such as kitchen, dining, shades and blinds, bedroom, and others. The residential furniture segment holds the majority share in the furniture market, mostly due to its susceptibility to factors such as population growth, urbanization, and housing needs. The proliferation of nuclear families has resulted in a surge in demand for residential dwellings.

Furthermore, manufacturers offer customized modifications and diverse design options to target certain customer segments to gain market share, while construction companies are implementing cost-effective housing initiatives in collaboration with governments to accommodate low-income populations. Based on these considerations, it is anticipated that the residential sector will exhibit comparatively superior performance compared to the other sectors throughout the projected timeframe.

Recent Developments

November 2023 - MagickHome introduced Chennai's first omnichannel interior and furniture brand, marking a first in India. MagickHome introduces Chennai's inaugural omnichannel interior and furniture brand, making it the first of its kind in India.

January 2024 - Feather & Black, the high-end bed and furniture brand owned by Dreams, initiated a new collaboration with Next. This agreement entails offering customers a curated assortment of beds and furniture on www.next.co.uk.