According to the latest report published by Credence Research, Inc. “Global Furniture Market – Growth, Future Prospects and Competitive Analysis, 2018-2026,” the global furniture market was valued at US$ 491.2 Bn in 2017, expected to grow at a CAGR of 4.6% from 2018 to 2026.
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The growth of the furniture industry is largely due to the growing base of millennials and, as a result, the manufacturers are rather optimistic about the steady increase in the sale of furniture in the coming years. Moderate growth in the residential sector is expected to have a positive impact on the growth of the furniture industry.
The growing number of housing projects, particularly in developing regions such as Asia-Pacific and Latin America, is a major factor in the growth of the furniture industry. China is a prime country for housing projects of this kind. For example, in October 2018, Century Bridge Capital invested in a joint venture with Zhonglaing Real Estate Group to begin real estate development for a middle-income residential project located in Huai’an, a Tier 3 town located in the northern province of Jiangsu, China. These developments are expected to boost demand for furniture. In addition, the growing demand for furniture rentals is also a key driver of market growth. However, the purchase of pre-owned furniture is a major constraint on the global furniture market.
Based on the type of product, tables are rapidly increasing consumer demand. Frequent product innovations and increasing demand for space-saving tables are some of the factors driving the growth of this segment. On the basis of material, wood is expected to continue to dominate the furniture market throughout the forecast period, due to a high consumer preference for wood furniture. Based on end-use, the residential sector accounted for a dominant share in 2017, the growth of which is largely attributed to the growing real estate industry. Based on the distribution channel, the online channel segment is expected to show the fastest growth during the forecast period due to a rapid inclination of consumers towards online purchases.
North America, followed by Europe, led the global furniture market in 2017. The U.S. is a key country for the growth of the furniture market in North America. Growing demand for home offices has increased the demand for filing cabinets, computer desks and office chairs, among others, which in turn increases the demand for furniture in the U.S. Moreover, the demand for luxury furniture in the U.S. has increased over the last few years, as consumers have shown a willingness to buy luxury furniture for their home.
Europe is expected to show moderate growth for furniture in the coming years, while Asia Pacific is expected to display rapid growth during the forecast period from 2018 to 2026. China, India, and Japan are the frontrunners to the growth of this industry. Rapid urbanization with higher discretionary incomes of the consumers has led them to browse various types of furniture for their homes, irrespective of prices, which is a key factor boosting market growth. Owing to the lucrative nature of this industry in Asia Pacific, several manufacturers have invested in expanding in this region. For instance, in 2018, IKEA marked its presence by opening up its maiden store in India.
The global market for furniture is marked by intense competition from the major manufacturers operating in this industry. Frequent product innovations, mergers & acquisitions, joint venture & partnerships and expansions are some of the key strategies adopted by these manufacturers to ensure long term sustenance in this market. Key players operating in the global furniture market include IKEA, Williams-Sonoma Inc., Durham Furniture Inc., Ashley Furniture Industries, Steelcase, Kinnarps, AFC Systems, Creative Wood, Wipro Furniture, and Godrej Industries among others.