Delivered March 5, 2021. Contributor: Katherine D.
Inform the sale strategy for home furniture to new home buyers by analyzing the most popular furniture types bought for a new home, as well as any buying patterns linked to the price of the home or upsizing behavior.
Wood furniture accounts for the dominant material, with 37.9% of the global market. However, plastic has captured a noteworthy share of 15.7%.
Growth is linked less to upsizing and more to the strong real estate market. Millennials are beginning to buy homes, especially older homes that require refurbishment. Millennials spend more on home improvement projects vs. any other age segment. Another group is more women living independently, driving the rise of service apartments and single-story houses. Finally, the growing immigrant population is driving the real estate demand which in turn drives the demand for furniture. All of these groups are not upsizing but choosing their first homes.
In terms of rooms, the greatest spend is localized to the living and dining rooms, driven by the population's need for comfort. Global spend in these two rooms was equivalent to $452 billion in 2019 or almost 32% ($452 billion divided by 1417 billion).
The bedroom also accounts for a large segment of spend, equalling 21% of the market in 2019 or $297.57 billion. Beds make up the biggest spend of this category, although wardrobes and storage products will grow the fastest.
Kitchen furniture spend is increasing as more materials become available. Spend here was $156 billion in 2019 or 11%, with an increase of 3.2% over 2018.
Lamp and lighting make up 15% of spend ($212.5 billion), with spending driven by the need for more energy-efficient light sources.
Looking at specific furniture, stationary chairs are expected to see the greatest growth at least within the US. Sales will grow from $2.4 billion in 2020 to $3.1 billion in 2025 or a 29.5% increase. Desks are also forecast to grow quickly as remote work becomes a fact of life, with demand growing by 25.5%, only behind stationary chairs.
There is no available data linking the price of homes to furniture buying patterns, but trends in the furniture category point to premiumization (such as an increasing focus on sustainability and white-collar needs like flexible workspaces).
Some top companies in this category include Ashley Furniture Industries Inc., Inter IKEA Holding BV, Klaussner Home Furnishings, LaZBoy Inc., Pier 1 Imports Inc., Raymour & Flanigan Furniture, Restoration Hardware Inc., Roomstogo.com Inc., Steinhoff International Holdings NV, and Williams-Sonoma Inc.
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