Prepared for Michael B. | Delivered March 5, 2021
Home Furniture Market Analysis
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.
The global market for home furniture is growing. Forecasts put it at
by 2025, a CAGR of
since 2018. In 2019, the spend was
. The US market is the leader, accounting for
of sales, or
Wood furniture accounts for the dominant material, with 37.9% of the global market. However, plastic has captured a noteworthy share of
Growth is linked less to upsizing and more to the strong real estate market.
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
living independently, driving the rise of service apartments and single-story houses. Finally, the growing
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
in 2019 or almost 32% ($452 billion divided by 1417 billion).
The bedroom also accounts for a large segment of spend, equalling
of the market in 2019 or $297.57 billion.
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
in 2019 or 11%, with an increase of 3.2% over 2018.
Lamp and lighting make up
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
in 2020 to
in 2025 or a
increase. Desks are also forecast to grow quickly as remote work becomes a fact of life, with demand growing by
, only behind stationary chairs.
convertibles and single-use sofa
s are expected to drive growth.
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
and white-collar needs like
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.
Consumer Goods & Products Specialist
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