FURNITURE MARKET GROWTH, TRENDS IN FIVE YEARS

The furniture market is expected to register a CAGR of 5% during the forecast period of 2021-2026.

The sudden COVID-19 pandemic, which hit the world during the initial days of 2020, has changed the face of the furniture industry on a large scale. The disruptions in the supply chain and the temporary ban on global trade have highly affected the countries with high dependencies on imports for their furniture needs. The pandemic forced around 58% of the world's population to switch to the stay-at-home protocol for a longer time, which motivated customers to optimize their homes and furniture with the increase in the time they spend at home. COVID-19 also heightened the importance of reducing the reliance on imports, along with improving automation and digitalization in the industry.

Increasing expenditure on furniture goods among millennials, coupled with the growing brand consciousness among them, is supporting the market to record growing revenues during the study period. The significant increase in the number of e-commerce platforms that offer various designs and models of furniture products is accelerating the growth of the market in the developing nations. The omnichannel distribution practices are also helping the key players record more revenues in the market.

Due to significant demand from the younger generation, key players have come up with various offers on their products. The growing demand for do-it-yourself (DIY) furniture products and ready-to-assemble (RTA) is also helping the market grow further, especially in the home and office furniture segments, thus helping the market record more sales across the globe. The growing residential and commercial construction across the globe and the increasing number of strategic alliances and partnerships are expected to drive the market's growth.

Growing Demand for Home Furniture is Driving the Market Growth

Owing to the rising global population and the growing middle class across the majority of regions of the world, the demand for home furniture is rising, helping the specific segment of the market to grow further. Coupled with the growing younger population and their unique furniture preferences, the demand for multi-functional furniture that feature maximum storage facility, innovative space-saving designs, and stylish design is driving the furniture market’s growth. The key players are focusing on ways to attract more customers by optimizing their products according to the tastes and preferences of consumers, which is anticipated to influence home furniture sales during the forecast period. RTA furniture is becoming increasingly popular among customers owing to the lower costs and compact designs.

Asia-Pacific Region is Fastest Growing in the Market

The Asia-Pacific region, owing to the high population and the growing residential construction, growing at a fast pace. As the standard of living continues to improve in China, customers have started investing in home decoration and home furniture. Increasing consumers’ purchasing power has also driven the furniture market to develop in the region. The key players in the furniture market are also launching their exclusive online platforms and some also entered partnerships with the e-commerce channels to strengthen their distribution networks, which is likely to drive the furniture market’s growth in the region. With the entry of IKEA into the Indian sub-continent in 2018, the competition became more complex in the country and the region, helping the firm strengthen its global presence.