By Peter Fitch
I think that we have been repeatedly reminded that the answer is no.
During the COVID-19 pandemic, we saw an increase in demand for furniture globally. The global furniture market is expected to grow from US$564.17 billion in 2020 to $671.07bn in 2021 at a CAGR of 18.9%. The growth is mainly due to companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $850.38bn in 2027 at a CAGR of 6%.
Asia-Pacific was the largest region in the global furniture market, accounting for 45% of the market in 2020. North America was the second largest region accounting for 21%. Africa was the smallest region in the global furniture market. The outbreak of COVID-19 has acted as a massive restraint on the furniture manufacturing capacity in 2020 as supply chains were disrupted due to trade restrictions, and this has to some extent carried over into 2021. Global supply chains still have not fully recovered. However, it is expected that the furniture manufacturing demand will recover from the shock across the forecast period, as it is a ‘black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Infrastructure expansion is the key factor prompting the economy of advanced and emerging countries. A country’s growth affects its financial aspects, thus supporting efficiency and boosting construction development. The economic development among the global population is a vital aspect for infrastructure growth, followed by the increasing demand for residential and commercial space equipped with modern features.
This article first appeared on the January / February 2022 issue of Panels & Furniture Asia. To read more, click here.