Household Furniture Market Definition
The household furniture market consists of sales of household furniture products such as dining tables, sofas, beds, chairs, bassinets, bookcases, chairs, TV stands, juvenile furniture and other household furniture products made from materials including wood, metal, plastics, reed, rattan, wicker and fiberglass.
Household Furniture Market Size
The global household furniture market reached a value of nearly $235 billion in 2018, having grown at a compound annual growth rate (CAGR) of more than 6% since 2014.
Growth in the household furniture market in the historic period resulted from the growth in emerging markets, rise in internet penetration, and growth in residential construction. Factor that negatively affected growth in the historic period was lumber supply crisis.
Going forward, economic growth, growing popularity of eco-friendly furniture and changes in lifestyle will drive growth. Factors that could hinder the growth of this market in the future include shortages of skilled workers, trade protectionism and stringent regulations.
Household Furniture Market Drivers
The Key drivers of the household furniture market include:
Growing Popularity of Eco-Friendly Furniture - The household furniture market is expected to benefit from the growing popularity of products made from sustainable raw materials such as rattan. Consumers are showing a preference for furniture with raw materials procured from sustainable sources. Household furniture products made from rattan, which grows faster than wood, are durable and more resistant to wear and tear. This has increased its use in household furniture manufacturing. According to a survey conducted by Furniture Today in 2015, 70% of respondents were willing to pay more for eco-friendly materials. This rise in the demand for eco-friendly products is likely to drive the household furniture market during the forecast period.
Household Furniture Market Restraints
The key restraints on the household furniture market include:
Lumber Supply Crisis - During the historic period the household furniture market was affected by low supply of timber due to factors such as politics, government regulations on wood production, poor logistics and natural disasters. For instance, the US government imposed tariffs of up to 24% on Canadian lumber exports to the US, which led to higher prices. Similarly, China reduced its deforestation rate from 2.7% annually to 1%, in 2015, limiting the supply of timber. Lumber mills in British Columbia were affected by insect infestations, which had destroyed 16 million hectares of lodge pole pine forests as of 2017. These factors limited the supply of timber, resulting in a shortage of raw materials for the household furniture companies and rising prices in the market, thereby limiting the growth of the market in the historic period.
Household Furniture Market Trends
Major trends influencing the household furniture market include:
Rising Demand for Ready-to-Assemble (RTA) Furniture Products - Ready-to-assemble (RTA) furniture is becoming increasingly popular among homeowners and renters globally, because of lower costs and compact designs. RTA furniture, also known as flat-pack furniture is not assembled by the manufacturer, and is available in parts with instructions to customers on how to assemble the furniture . The demand for RTA furniture products is increasing, especially in developing economies such as China and India, because of compact homes in cities with large populations and the low-cost advantages offered by this type of furniture. Furthermore, RTA furniture benefits manufacturers by eliminating the assembly time and reducing the cost of manufacturing and delivery, allowing them to focus only on design and production of parts. RTA furniture types include RTA bedroom sets, RTA dressers, RTA computer desks, RTA bookcases, RTA filing cabinets and others. Major companies offering RTA furniture include IKEA, Dorel and Sauder Woodworking.
Virtual Prototyping - Household furniture companies are using 3D imaging tools for the creation, modification and analysis of designs. This reduces the time and resources required for making physical models. Virtual prototyping allows designers higher flexibility in the designing of furniture products by allowing corrections, testing of new ideas and customization of products according to consumer preferences. Virtual prototyping can be further used in producing models for marketing, thereby cutting costs on traditional advertising photography. Major companies providing software solutions for virtual prototyping household furniture products include Autodesk and Lectra.
Opportunities In The Household Furniture Market
Opportunities – The top opportunities in the global household furniture market will arise in the wood furniture segment which will gain $13.5 billion of global annual sales by 2023. The household furniture market size will gain the most in China. Household furniture market-trend-based strategies include manufacturing of RTA furniture, usage of virtual prototyping tools, and online retailing options. Player-adopted strategies in the household furniture industry include expansion through mergers and acquisitions and development of new product range.
Household Furniture Market Segmentation
The household furniture market is segmented by type, by area of use and by geography.
By Type -
The household furniture market is segmented by type into
- a) Wood Furniture
- b) Metal Furniture
- c) Plastic Furniture
- d) Others
Wood Furniture had the highest growth rate of nearly 6.5% during the historic period. This growth is mainly due to the fact that customers are preferring wooden furniture products over other kinds because of aesthetic reasons and because they are more resistant to wear and tear and not prone to rust like metal furniture.
By Area Of Use -
The household furniture market is segmented by area of use into
- a) Bedroom Furniture
- b) Living Room Furniture
- c) Dining Room Furniture
- d) Household Furniture
- e) Others
Bedroom Furniture was the largest segment in the global household furniture market with 53.3% of the market.
By Geography - The household furniture market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Asia Pacific is the largest market for household furniture, accounting for almost 42% of the global market. It was followed by Western Europe, North America and then the other regions. Going forward, the Asia-Pacific and Western Europe will be the fastest growing regions in this market.
Household Furniture Competitive Landscape
Major Competitors are:
- • Inter IKEA Holding B.V.
- • Ashley Furniture Industries, Inc.
- • La-Z-Boy Incorporated
- • Steelcase Inc.
- • Man Wah Holdings Limited
Other Competitors Include:
- • Leggett & Platt Incorporated
- • Ethan Allen Interiors Inc.
- • Dorel Industries
- • Herman Miller, Inc.
- • Flexsteel Industries, Inc.