Furniture retail is an important aspect of the global economy and is geared primarily to meeting consumers' demand for home appliances and office furniture. The industry deals with several types of furniture, namely residential furniture, commercial furniture, and special-purpose furniture. Owing to various e-commerce factors, as well as the digital and customer-centric tendencies of consumers, growth of the industry is very strong.
The size of the global furniture market in 2023 was valued at approximately USD 650 billion, and it is expected to grow to USD 850 billion by 2030. This is expected to grow at a CAGR of 5.2% in the forecast period 2024-2030. The growing economic advantages are likely to improve market performance over time. These benefits include higher household incomes, urban growth, real estate development, and designing custom furniture for wealthy customers. All these regions Asia-Pacific, North America, and Europe top the list of the regions that contribute to the market expansion.
Furniture retail is an important aspect of the global economy and is geared primarily to meeting consumers' demand for home appliances and office furniture. The industry deals with several types of furniture, namely residential furniture, commercial furniture, and special-purpose furniture. Owing to various e-commerce factors, as well as the digital and customer-centric tendencies of consumers, growth of the industry is very strong.
The size of the global furniture market in 2023 was valued at approximately USD 650 billion, and it is expected to grow to USD 850 billion by 2030. This is expected to grow at a CAGR of 5.2% in the forecast period 2024-2030. The growing economic advantages are likely to improve market performance over time. These benefits include higher household incomes, urban growth, real estate development, and designing custom furniture for wealthy customers. All these regions Asia-Pacific, North America, and Europe top the list of the regions that contribute to the market expansion.
The furniture retail industry is constituted by enterprises in the business of selling residential furniture, office furniture, and commercial furniture both through brick-and-mortar retail outlets, virtual outlets, and, in other cases, through hybrid distribution channels. The furniture retail market is characterized by the presence of manufacturers, wholesalers, dealers, and stores offering their services at different styles, materials, and prices to satisfy their customers.
1. Traditional Furniture Store Retailers: Storefronts or physical stores comprising traditional furniture.
2. E-commerce sites and online stores or markets: Web giants such as Amazon’s website, Wayfair, or even IKEA’s website sales.
3. Selling Direct to Customers (D2C) Businesses: Companies like Burrow and Article, who sell to consumers on newer forms of media, are examples of D2C businesses.
4. Thrift Stores for Used or Renovated Furniture: Examples of these stores include thrift stores and online stores such as Facebook Marketplace and even eBay.
5. Rentable or Subscription Furniture Items: They are those that offer, for instance, rental of their items for a specified period of time.
1. Online retailers and augmented reality (AR) technology development. Retailers are embracing augmented reality applications as they provide online consumers with the opportunity to place furniture directly in their homes.
2. Tendency to Upgrade Simple Designs or Turn Environmentally Friendly. Products like bamboo, reused wood, and recycled items are experiencing growth.
3. Multifunctional and Intelligently Designed Furniture. Products that offer high productivity in relatively small spaces,, such as foldable tables and IoT-integrated chairs, are currently in high demand.
4. It applies to both altered products and DIY (do it yourself). Options for Furniture: Consumers are increasingly receiving privacy solutions and IKEA-like furniture.
5. Expansion into New Markets: India, China, Brazil, and other regions are experiencing growth due to growing middle-class segments of the population.
- Sustainable Furniture Increase: Customers prefer environmentally friendly and recycled furniture.
- eCommerce Strength: By 2026, online furniture sales should account for 30% of the market.
- Demand for Customization in Design: There is an increasing demand for customized furniture designing services.
- Proliferation of Smart Furniture: The use of modern AI-based home and workplace designs is on the rise.
Effect of Urbanization: There is a growing trend toward the use of space-saving or modular furniture in cosmopolitan areas.
1. Classification by Product: Includes beds, seats, sofas, tables and chairs, and outdoor furniture.
2. Channels of Distribution: Incl. e-Commerce, Conventional Retail (Departmental, Specialty, Hypermarkets/Supermarkets, and Home or Corner Shops).
3. Components of Materials: wood, metallic, plastic, glass, bamboo, and leather.
4. Uses by Type of End Users: Residential, Commercial, Industrial, and Hospitality.
1. ‘IKEA’ (Sweden) is the world’s biggest retailer of low-cost “flat-pack” furniture.
2. ‘Ashley Furniture’ (USA):- a major furniture producer and trader in the country.
3. 'Wayfair' (USA):- the largest internet furniture sales portal.
4. ‘Steelcase’ (USA):- a furniture company mostly, if not exclusively, dealing with office furniture.
5. ‘Williams-Sonoma’ Inc. (USA):- a retailer of luxury domestic goods with its flagship brands Pottery Barn and West Elm.
6. Herman Miller (USA):- makes high-quality office chairs.
7. ‘Natuzzi’ (Italy):- a high-class furniture brand designed for tailor-made furniture with enhanced crafting skills.
8. ‘HNI Corporation’ (USA):- provider of furniture solutions for all types of spaces, including institutional and residential.