Off-the-Shelf Second-Hand Furniture Market

Market Overview

The global off-the-shelf second-hand furniture market was valued at USD 29.80 billion in 2021. It is projected to reach USD 58.58 billion by 2030, growing at a CAGR of 7.80% during the forecast period (2022-2030). 

The second-hand furniture market is showing signs of expansion. Many people have been selling their furniture at low prices due to people moving to new cities due to the coronavirus lockdowns, unemployed millennials returning to live with their parents, and boredom-induced remodeling. The market has grown as a result of the proliferation of internet websites. However, the price differential between new and used furniture is insufficient to encourage more environmentally friendly purchasing habits, which limits market demand. The rising popularity of used furniture promotes sustainability, reduces the need for manufacturing inputs, and lowers carbon footprint. Businesses are implementing new measures like IKEA, which will help them improve their standing in the market for used furniture.

Market Dynamics

Global Off-the-Shelf Second-Hand Furniture Market Drivers

Rising Awareness to Reduce Furniture Disposal for Better Environmental Conditions

Even though thoughtful recycling and furniture purchases may not seem important, they can have a significant impact if enough people utilize them. Furniture producer and designer Steelcase is converting to a circular economy business model and working to build more furniture that can be readily disassembled and recycled. The average cost of waste management for a company or organization is up to 4% of total costs. With the popularity of flat-pack furniture firms, awareness of furniture trash, or "f-waste," has increased.

Additionally, IKEA revealed that it was running a trial run of a program for renting office equipment in Switzerland. Like Feather, several furniture rental firms target urban millennials who might not want to establish roots. The theory is that if they rent rather than purchase their furniture, it will be given to another customer after they move rather than being thrown out.

Local governments, corporations, and well-established businesses are starting to set deadlines for implementing environmentally friendly practices. For instance, to encourage customers to sell back their used IKEA furniture, IKEA launched a new "Buy Back" initiative in selected EU nations in November 2020. IKEA will then sell the furniture at retail prices. To become a fully circular firm by 2030, the company has committed to using only recyclable, sustainable, or reusable products.

Global Off-the-Shelf Second-Hand Furniture Market Restraint

Uncertainty with the Lifespan of Second-hand Furniture

An antique piece of furniture has already withstood the test of time, which is why the furniture will not be durable. Most people no longer buy home furnishings to last forever, even though they do not have an expiration date like packaged foods. A new average lifespan for furniture has been created due to evolving tastes, a more mobile society, and a wider choice of furniture price possibilities. The average lifespan of most items ranges by several years. The amount of daily use, the degree of care required when using the furniture, and the original materials used in their construction all play a significant role.

Global Off-the-Shelf Second-Hand Furniture Market Opportunities

Growing C2C and B2C Online Stores

The furniture industry is one of the strongest global adopters of online selling strategies in both the commercial and residential sectors. The worldwide construction boom and rising residential and commercial infrastructure investments are the main drivers of the furniture market's upswing. In industrialized countries, rising wealth and disposable income levels will increase the number of dining establishments, vacation spots, hotels, and shopping centers. Faster innovation cycles among producers are encouraged by new technology, design, and materials, which also benefits luxury and innovative furniture retailers.

In the resale market, some niches have done well in the past and are still doing well today. One of the resale market's fastest-growing subsectors is used furniture. The expansion of e-commerce has been aided by the rise in mobile device users worldwide. People are transacting more flexibly and passively online thanks to mobile devices. In addition, fintech businesses are also changing payment systems, making them safe and easy to complete transactions. These factors are anticipated to create tremendous opportunities for the global off-the-shelf second-hand furniture market over the forecast period.

Regional Analysis

The global off-the-shelf second-hand furniture market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the most significant shareholder in the global off-shelf second-hand furniture market and is expected to grow at a CAGR of 5.30% during the forecast period. North America is anticipated to experience substantial growth over the forecast period. The North American market for used furniture is expected to grow as second-hand furniture becomes more widely available through online retailers like eBay and Amazon. This is projected to boost sales of used furniture in the US. The availability of goods at enticing price points is impacting the adoption of used furniture, which is anticipated to substantially impact the market for used furniture in the coming years. Due to the increased accessibility of used furniture through online and offline channels, the North American off-the-shelf second-hand furniture market is expanding quickly. Many furniture designs that can suit consumer wants are being adopted by consumers.

Europe is expected to grow at a CAGR of 4.95% during the forecast period. Germany and the United Kingdom are the two nations that make the most of the market for used off-the-shelf furniture in Europe. The expansion of the Europe market for off-the-shelf second-hand furniture is anticipated to be fueled by a rising desire to maximize return on investment as well as the rising emergence of charity shops as a premier offline shopping destination for second-hand furniture products during the forecast period. The advantages of second-hand furniture in terms of cost savings are credited with the market expansion for off-the-shelf used furniture. The growing desire of customers to cut costs across Europe is helping the sector expand.

Asia-Pacific is expected to grow significantly over the forecast period. With 60% of the world's population, Asia-Pacific has developed into the most developed digital economy. Many new entries into the second-hand furniture market are being drawn by the increasing demand for used furniture and are using a variety of internet channels to conduct business. Companies are engaging in various acquisitions to boost their market presence, maximize opportunities, and drive growth. For instance, Flipkart completed the acquisition of eBay India, an online auction platform. Through its product exchange programs, Flipkart predominantly leverages eBay India to sell old goods to its customers. The shift has aided the growth of the used furniture business in consumer expenditure toward higher-quality living, which is supported by an increase in per capita and disposable income.

The second-hand off-the-shelf furniture market in South America is characterized by several variables, each of which is essential to the expansion and development of the sector. The sector has expanded thanks tremendously to the quickly developing internet markets and increased disposable money. The Middle East and Africa's off-the-shelf used furniture thrift stores market has improved growth prospects due to rising public awareness, reasonable prices, and consumer trust in online platforms.

Segmental Analysis

The global off-the-shelf second-hand furniture market is segmented by type, application, and distribution channel.

Based on type, the global off-the-shelf second-hand furniture market is bifurcated into kitchen furniture, dining furniture, and others.

The living room furniture segment is the highest contributor to the market and is expected to grow at a CAGR of 5.20% during the forecast period. Furniture made of hardwoods like oak and maple is robust and long-lasting. Softwoods like pine lumber should be avoided when purchasing used wood furniture, especially sofas. In general, pine is a good choice for lightweight or low-pressure items, and the durability of the wood used to create sofas and other pieces of living room furniture should be taken into account before making any purchases. Premium woods, such as mahogany, teak, cypress, zebrawood, and rosewood, can attract greater costs than common wood species because a well-crafted piece of furniture manufactured from excellent materials will withstand use for an extended period.

Kitchen cabinets may cost a significant portion of the overall budget for a kitchen remodel. But one way to reduce the hefty cost of brand-new kitchen cabinets is to buy used or secondhand ones. Used working cabinets are a common selling kitchen furniture item in the secondhand kitchen furniture market. Working cabinets have been a common fixture in homes' kitchens for many years. However, while redesigning the kitchen, homeowners or contractors frequently seek to remove these cabinets. Customers often receive a set of secondhand working kitchen cabinets. Nonetheless, some homeowners may also opt to include the countertop, especially if they plan on installing a new set of cabinets shortly.

Fitted furniture is a growingly popular choice for adding storage to bathrooms. The continual influx of advanced designs in bathroom fixtures and fittings has recently led to a noticeable increase in bathroom remodeling spending worldwide. This has emerged as a significant market driver for the need for used bathroom furniture products. Over the projection period, these expenditures are anticipated to surpass other house renovation expenditures. Bathroom storage, bathroom mirrors, and wall art are small home furnishings that are quick to sell and require outstanding condition.

Based on application, the global off-the-shelf second-hand furniture market is bifurcated into residential and commercial.

The residential segment owns the highest market share and is expected to grow at a CAGR of 6.25% during the forecast period. The critical elements driving demand for this segment are the increased demand for new residential development projects in metropolitan regions to accommodate urban migration and the growing world population. Additionally, it is projected that the real estate industry's numerous promotional initiatives and consumers' expanding spending power will support the market's growth prospects over the forecast period. The adoption of second-hand furniture is influenced by the availability of products at an attractive price range, which is expected to affect the significant demand for used furniture in the coming years.

The demand for used furniture in offices and other commercial areas is growing, helping the commercial industry prosper. Small business owners typically have to make many adjustments within a limited budget to pay the office rent and the employees' salaries. Small business owners can reduce other costs by choosing used furniture instead of new, like furnishing the office with furniture and other assets. The used furniture is inexpensive to maintain and is simple to clean, making it ideal for use in offices. Additionally, startups and small workplaces employ high-quality used furniture at reasonable costs, improving the office's appearance.

Based on distribution channels, the global off-the-shelf second-hand furniture market is bifurcated online and offline.

The offline segment is the highest contributor to the market and is expected to grow at a CAGR of 4.55% over the forecast period. Due to their capacity to deliver a better experience, pertinent information, and advice from design specialists, offline businesses frequently speed up the purchasing process. The market is anticipated to be driven by the growing desire to maximize return on investment and the rapid rise of charity shops as a premier offline shopping destination for used furniture products. Selling used furniture is another prominent service provided by thrift shops. They frequently offer a used furniture pick-up service if one can donate the furniture to the thrift store for it to sell.

Customers have many options to pick from while shopping online, but they can touch and feel things before purchasing in an offline store. In the UK alone, 3 out of 10 people think the growth of online stores and apps is responsible for the rise in second-hand shopping. Millennials have enthusiastically embraced the changes brought about by the growth of the internet and e-commerce, which has had a significant impact on the furniture sector. The rising number of Digital and social networking users is one of the factors driving the growth of the market's online enterprises.

Recent Developments

• September 2022- IKEA and Swedish House Mafia partnered to democratize at-home music creation and allow many music enthusiasts to express their ideas. The outcome is the OBEGRNSAD collection, which includes more than 20 goods and will be available worldwide in October 2022.
• November 2022- The second annual Trend Report was released by Kaiyo, a full-service marketplace for used furniture dedicated to great design, exceptional customer care, and a more sustainable planet. In addition to highlighting the continued growth of secondhand, Kaiyo's 2022 Trend Report also includes customer data, community insights, and key market trends.