According to a research report by Global Market Insights, the furniture market is estimated to surpass a US$750 billion valuation by 2026. The market is poised to foresee lucrative growth in the years ahead owing to the high product adoption and demand across commercial and residential sectors. The market is especially likely to be driven by the growing demand for furniture from developing economies. Additionally, the ongoing focus towards environmental sustainability is also expected to play a major role in shaping the industry’s future.
In recent times, numerous market players have been coming up with novel and innovative solutions to strengthen their position in the industry landscape. For instance, in October 2020, IKEA, the renowned furniture retail company, reportedly announced the launch of a new recycling initiative that will help the firm become more sustainable and carbon neutral. Under the new scheme, IKEA offers to buy back used furniture from customers in Milton Keynes. Customers would be given vouchers worth up to half the value of goods, and the second-hand products would be re-used and recycled to make new furniture.
Below are some of the key trends that are likely to influence the growth of the furniture industry.
Impact of the COVID-19 pandemic
The ongoing COVID-19 outbreak has adversely affected all the manufacturing and industrial sectors across the world. In fact, it has fundamentally disrupted business functions of numerous industries globally. The nationwide lockdowns for the prevention of the spread of COVID-19 have also negatively affected the construction industry, the biggest revenue generator of the furniture market. The sudden increase in cases, specifically across Asia and Europe, has further resulted in the temporary closure of various furniture production facilities, thereby disturbing the demand and supply chain.
However, with various economies steadily lifting their respective lockdowns, a steady recovery trend is expected to be seen in the upcoming years with the furniture industry showcasing a decent jump in revenues.
Increasing product adoption across commercial sectors
The commercial application segment is expected to grow at a CAGR of more than 5.8% over the forthcoming time period. The anticipated growth can be attributed to the surging demand for furniture, mainly in office settings. The furniture used in office comprises of those specifically designed for office applications, including individual workstations, lounges, meetings and cafeterias. With rapid globalisation and urbanisation across the globe due to increased education, rising employment rates and the establishment of new offices, the furniture market is likely to witness substantial growth over the coming years.
Growing product demand across Middle East & Africa
On the geographical front, the Middle East furniture market, in terms of revenue, will account for 5% of the global industry share by the end of the forecast time period. This can be ascribed to the fact that the region houses a well-established and one of the rapidly growing construction industries. Subsequently, economic development due to regaining oil prices will substantially support the regional construction business growth, mainly in the form of government investments.
In fact, favorable initiatives by regional governments for increasing the inflow of foreign direct investment in construction will further drive Middle East and Africa (MEA) furniture market revenues. Large hospitality industry projects are further contributing towards tourism growth across the region, which would drive the market growth in forthcoming years. Countries like South Africa, United Arab Emirates, and Saudi Arabia are some of the key contributors to the development of the regional furniture market.
Meanwhile, several industry players are increasingly focusing on enhancing their product portfolios through numerous strategic means like new product launches, partnerships, mergers and acquisitions. For instance, in November 2019, Furniture Concepts, a contract furniture wholesaler and Flatcreek Manufacturing, reportedly announced their merger to create a leading contract furniture company. The firms together will offer tailored solutions, personal service and quality craftsmanship.
Urban Office Interiors, Heritage Home, Furniture Concepts, Herman Miller, Inc., Furniture Services, Inc., Okamura Corporation, La-Z-Boy, Humanscale Corporation, HNI Corporation Godrej & Boyce Manufacturing Co., Global Furniture Group., Urban Office Interiors, Renaissance Furniture, Haworth, Inc., Inter Kohler CO., Ashley Furniture Industries, Inc., McCarthy Group, and The Home Depot, Inc. among many others are some of the key players operating in the furniture market.
Source: Global Market Insights