5 Top Trends in the Furniture Industry
During the economic recession, the furniture retail industry was negatively impacted as consumers cut back on non-essential spending, but now there is an uptick in demand. In fact, the U.S. furniture industry has outpaced the U.S. economy in recent years. While the housing market improves and discretionary spending increases, we will see this growth continue. By 2019, the global market for furniture and floor coverings is forecast to reach $695 billion.
Several key industry trend have emerged, as new innovation and shifting consumer preferences influence the demand for furniture. Read on to learn more about the top trends that are shaping the furniture industry.
1. Therise of telecommuting is driving the demand for home office furniture.
The need for home officesincreased during the financial crisis in 2008-2009 and the European debtcrisis in 2011-2012, driving increased demand for computers, desks, officechairs, and filing cabinets. Consumers quickly found that their home officeshad multiple uses, and they often preferred to buy versatile furniture thatcould cover up office equipment when not in use. As a whole, the market for global home office furniure is forecast togrow at a compound annual growth rate (CAGR) of 5.58 percent between 2014-2019.
2.Multi-functional, versatile furniture is gaining popularity.
The number of single- andtwo-person households has been increasing, resulting in the demand for smalland portable furniture. Consumers have also been looking for furniture that ismulti-purpose, foldable, and technology-driven, especially when it comes toliving in smaller spaces.
3.Online is the fastest-growing channel in developing markets.
The U.S.home furnishing store industry includes about 15,000stores with combined annual revenue of about $27 billion. The industry isextremely concentrated, with 50 of the largest U.S. stores accounting for 75percent of the industry revenue. But, the competition is rising. Online storesare becoming the fastest-growing channel at a CAGR of 16.6 percent. Manycompanies are putting more efforts towards their online retail store, by adding benefits for consumers whoshop online such as free delivery and installation and even same-day pick up.
4. Thedemand for luxury furniture is increasing.
As the economy has grown, moreconsumers are willing to buy luxury items for their living and workenvironments. The global luxury furniture market is expected to grow at aCAGR of over 4 percent between 2015-2019. In terms of location, Europe has thelargest market for luxury furniture, but developing countries such as China andIndia are not far behind.
5. Morefurniture vendors are choosing to go green.
With luxury comes the expandingtrend to go green. Many vendors are developing eco-friendly furniture. Thistrend is driven by environmental concerns, such as the problem ofdeforestation. Although eco-friendly furniture is more expensive, the demand ison the rise, making it worthwhile for manufacturers and companies to offerthese products.
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