Furniture Market Analysis

Furniture Market Analysis

Based on application, the global market is classified into residential and commercial. The residential segment dominated the market, accounting for USD 400.8 billion in 2023 and is expected to grow at a CAGR of 5% from 2024 to 2032. As a result of the rising homeownership rates, particularly in developing countries, the demand for household furnishings in growing. New homeowners are keen to invest in furnishing their homes, resulting in growing demand for various furniture. Furthermore, emerging trends in home improvement and renovation, driven by rising disposable incomes and a desire for personalized living spaces, contribute to increased residential furniture sales.
 

Based on distribution channel, the furniture market is classified into online and offline. The offline distribution channel dominated the market with 83.8% of the market share in 2023 and is expected to reach USD 818 billion over the forecast period of 2024-2032. The dominance of offline distribution channels in the furniture sector can be attributed to several important aspects such as shoppers frequently prefer the hands-on experience of physically viewing, handling, and experiencing furniture before making a purchase.
 

This hands-on experience enables consumers to evaluate the quality, comfort, and fit of the furniture for their needs. In addition, offline retailers provide products that are immediately available, allowing shoppers to take their purchases home/have them delivered quickly, which is an important aspect in purchasing decisions.
 

In the global furniture market, Asia Pacific accounted for the largest market share of USD 321.5 billion in 2023. It is projected to reach USD 513.1 million by the end of 2032. This development can be attributed to the rising disposable incomes of consumers, which allow them to invest more in high-quality furniture. Additionally, increased demand for living room furniture, followed by bedroom, kitchen, and dining furniture, is expected to drive further market expansion.
 

China is one of the world's leading producers of furniture, accounting for USD 7,128 million in 2023. China's industrial sector benefits from lower labor costs than many other countries. This cost advantage allows Chinese furniture makers to offer competitive pricing on their products globally.
 

The U.S. furniture market was valued at 73.3 million in 2023 and is anticipated to drive significant growth in the industry over the forecast period. Expansion of the housing market, including newly built homes and home renovations, increases the demand for furniture as homeowners fill newly renovated/enhanced spaces. For instance, according to the U.S. Census Bureau, the U.S. office construction spending reached to USD 81 billion in 2020 and is poised to witness approximately 6% growth since the year 2017.