Furniture includes a variety of areas — such as sleeping, seating, house decorating, storage, work, and so on. They are used in both private residences and public locations such as restaurants and hotels. Luxury furniture is made of high-grade wood, glass, and metal, among other materials, and is of premium quality and design. It has aesthetic value as well as status symbolism, and it adds elegance and flair to any business, including houses, hotels, and offices.
The luxury furniture market value was $28.79 billion in 2021, and it will reach $41.82 billion at a 4.23% CAGR.
Key industry drivers
The enormous increase in the real estate business aided the expansion of the luxury furniture market. The migration of people to urban regions, globalization, and an increase in personal disposable income are all driving the global luxury furniture market forward. As per the Committee on Climate Change, the United Kingdom had 29 million residences as of 2019, and the government intends to develop 1.5 million more domestic living spaces by 2022. According to the Ministry of Housing and Urban Affairs, the Indian government sanctioned about 1 billion dwellings under the Pradhan Mantri Awas Yojana scheme during the fiscal year 2019-2020.
People’s increasing environmental concern will drive demand for eco-friendly luxury furniture all across the world until 2025. Furthermore, the growing global penetration of online shopping is likely to fuel the global luxury furniture industry. Changes in lifestyle and increased disposable money would provide significant potential in the worldwide luxury furniture sector.
The increased growth of home furnishings and the increased rate of rapid urbanization is also considerably fueling the overall market growth. The majority of the world’s population lives in cities. The global population living in cities is anticipated to rise from 55% in 2018 to 60% by 2030.
Furthermore, an increase in the production of luxury Folding Dining Chairs, Luxury Counter Stools, Luxury Ottoman Beds, Luxury Round Beds, Luxury Leather Bar Stools, Modern Luxury Bed, Luxury Sofas, and Bentley Home Furniture is boosting the market growth.
The lack of highly skilled personnel in the global luxury furniture business and the rising cost of raw materials are the industry’s main obstacles, restricting the market growth.
On the basis of material, the luxury furniture market is segmented into wood, glass, plastic, leather, metal, and others. In 2020, the ‘Wood’ sector dominated the market, accounting for over 46.23% of the total luxury furniture market share. Wooden furniture is popular due to its natural beauty, ease of upkeep, high resistance, and durability. All of these elements considerably contribute to the overall growth of this segment.
In terms of end-user, the industry is segmented into commercial use and domestic use. In 2020, the domestic use segment held a significant position in the market, with a share of more than 67.21%, at a 4.73% CAGR. Well-designed and made ornamental furniture is mostly employed in kitchen areas, at the front door, and in bedrooms or living rooms of domestic residences, boosting the overall market growth.
Geographically the luxury furniture market is analyzed across Europe, North America, Asia Pacific, and LAMEA. With a CAGR of 4.14%, the luxury furniture market in Europe had the biggest market share, followed by North America. The existence of highly skilled labor, a greater supply of high-quality wood, and more funding from the European government are the main drivers of this market’s expansion. From USD 11.26 billion in 2019, the market in the UK is anticipated to grow by about 3.8% in 2020–21.
During the anticipated period of 2020–2030, the Asia–Pacific region had the market’s quickest growth rate. Due to the ongoing rise in disposable incomes and living standards, China has the largest and fastest-growing furniture market in the APAC region.
Key players analysis
The market is estimated to have considerable growth during the forecast period as a result of the implementation of tactics such as new product launches and mergers & acquisitions to ensure superior product visibility, customer recall, and enhancement of the consumer base & revenue share.
Major players in the market are:
- Nella Vetrina
- Laura Ashley Foldings PLC
- Muebles Pico
- Scavolini S.p.A.
- Heritage Home Group LLC
- Henredon Furniture Industries Inc.
- IKEA Group
- Herman Miller
- Bentley Home
- Other players
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