Global Furniture Market Dynamics: Trends, Challenges, and Segment Analysis from 2022 to 2030."
In 2022, the global furniture market reached a valuation of USD 516.66 billion, with a projected growth to USD 780.43 billion by 2030, reflecting a noteworthy Compound Annual Growth Rate (CAGR) of 5.36% throughout the forecast period. Let’s check out how this rate has affected various industries and furniture trends.
Rising Demand for Eco-Friendly Furniture Emerges
An American e-commerce corporation reported a substantial 171% surge in searches for the keyword 'sustainable furniture' on its search engine in the U.K. during 2020 compared to 2019, indicating a significant rise in consumer interest in eco-friendly options.
This upward trend in sustainable product searches is expected to contribute positively to market growth during the forecast period. Take a glance at the many options now available. There are plenty of sustainable options out there. Try a desk or something else that you find necessary for creating a well organised and cosy space in your home.
Many of us lack ideas when dealing with interior decoration. Therefore, it might suit you to check out VidaXL’s website. Here, you will be able to discover products of different kinds to unlock your personal home’s potential.
Impact of Lockdown Measures on Upholstery Shops: A Hurdle to Market Growth
The imposition of uncertain COVID-19 lockdown restrictions has led to the widespread closure of upholstery shops globally. Notably, in March 2020, the U.S. Department of Commerce highlighted a significant 26.8% decline in sales at U.S. furniture stores compared to the preceding month.
Despite these challenges, the shift in the professional landscape towards remote work has become a primary driver for the demand in household work tables and chairs during the pandemic. For instance, in the 12 months ending August 2020 a prominent upholstery retailer witnessed an impressive 43% surge in online sales of furnishing items worldwide - and so did many other furniture manufactures.
Everyone simply had more time to shop online during the lockdown, and the trend of shopping online has not necessarily decreased. We all learned how simply shopping can be and how easy it is doing so from the comfort of your own home.
If a business succeeds in creating a user-friendly and relevant online shop, a business will be able to generate a profit solely based on online purchases. Nevertheless, it is not as easy to create a user-friendly and relevant online shop as it might sound. It is time-consuming and demands a proper business strategy in order to harvest the fruits of the online shopping potential.
Second-hand Goods Impedes Market Expansion
The current trend among the middle-class population is a preference for purchasing pre-owned home furnishing items, prioritising cost-effectiveness over luxury products.
Therefore, many furniture manufacturers are trying to imitate the looks of old-fashioned furniture in order to keep up with the current trends. However, it can become quite a challenge when trying to match the prices of second hand furniture, which might be one of the biggest obstacles in the attempt of imitating old-fashioned, retro furniture.
In order to produce low-price furniture, which is able to compete with second-hand products, quality and sustainability are often topics that go unconsidered. Yet, the majority of furniture manufactures are well aware that especially sustainability is a topic that needs to be considered in the production line. Likewise, furniture of higher quality is often considered rather more sustainable, as it places less pressure on production - simply due to a longer lifetime.
Furniture manufactures are currently putting in a lot of energy to try and puzzle this problem statement: Creating sustainable quality furniture to a decent price that might be able to compete with second-hand products. This will be essential for most furniture companies in order to maintain a favorable marketplace in the industry of furniture.
Furthermore, the market faces significant competition from unorganised key players operating in various countries worldwide, constraining the growth prospects of major companies. Fluctuations in raw material prices and the dynamic nature of customs and import duties on furniture items across multiple countries globally are expected to present challenges and obstacles to the industry's continuous growth.
Indoor Segments Taking the Lead
Categorised into indoor and outdoor segments, the market witnesses a dominance of the indoor category. According to data from the Kitchen Cabinet Manufacturers Association, U.S. kitchen cabinet sales in 2018 reached USD 7.3 billion, marking a 2% increase from 2017. Conversely, the outdoor segment experiences growth driven by the need for seating arrangements, including chairs and auditorium stages, to facilitate festive events in balconies and gardens.