The demand for handcrafted authenticity in luxury furniture is bolstering industry growth. In addition, online shopping options are becoming increasingly popular among consumers.
Growth Drivers
The global luxury furniture market is gaining momentum as a result of rising disposable incomes and elevated consumer standards. The escalating demand for eco-friendly luxury home furnishings is also fostering the market’s expansion.
Rapid urbanization is another significant factor fuelling the growth of the luxury furniture market. People are increasingly preferring to live in cities, driving them to opt for designer furniture with high aesthetic value. People are also increasing their contracts or buying a home warranty plan to protect their investments. While kitchen appliances are a necessity in home furnishing, furniture still requires attention too.
The COVID-19 pandemic slowed down the luxury home furnishing industry’s revenue growth, but is now returning to pre-pandemic levels. Furniture manufacturers are focusing on designing new furniture items that are highly durable and easy to clean, which is likely to boost their market sales. In addition, the influx of tech-savvy consumers seeking personalized shopping experiences is encouraging luxury furniture makers to invest in new production technologies. This is helping them upgrade their existing furniture portfolio and improve operational efficiency, enhancing their market potential.
Growth Opportunities
The global luxury furniture market is anticipated to grow at a robust progression during the forecast timeframe. The growth is primarily driven by rising disposable incomes, elevating consumer standards, and an increase in residential and commercial construction activities.
Moreover, the increasing trend of online shopping among customers is boosting the industry growth globally. Through e-retail platforms, customers can browse through various product options, read reviews from previous buyers, and compare prices across different vendors.
Reputable industry players are catching up with the changing purchasing patterns of surging younger population by updating their existing line-up of luxury furniture products. Incessant innovations in the production, design, and materials incorporated into furniture pieces are further fuelling industry progress. In addition, the increasing demand for eco-friendly luxury furniture is accelerating the industry advancement. Additionally, the demand for luxury furniture is expected to boost in emerging economies owing to improved purchasing power and rising standard of living.
Growth Trends
With rising disposable income and elevated consumer standards, the luxury market is booming. This trend is particularly pronounced in the furniture industry, which allows brands to offer made-to-measure creations that can elevate the customer’s lifestyle.
However, the market is expected to face new challenges in 2024, including volatile raw material prices. This was a particular issue during the pandemic year, but the volatility is likely to continue as the impact of the trade war intensifies.
In addition, the market is influenced by growing urbanization, which drives demand for products that add value to living spaces. This also encourages the purchase of luxury furnishings as a status symbol. Other driving forces include consumer preference for branding and positioning, accelerating demand for eco-friendly luxury furniture, the impacts of globalization on low operational costs, and expanding infrastructure investments. Moreover, the demand for home office upgrades is a growing trend as remote working becomes more common. This can result in a buying frenzy for desks, storage units, and decor that separates personal from professional space.
Competitive Analysis
Industry players are introducing advanced table designs that elevate the aesthetics of any space. Increasing demand for multifunctional furniture has also fueled the industry growth. In addition, a number of factors such as EMI options, exchange facilities, competition among ecommerce websites providing heavy discounts and increase in the number of new showroom launches are influencing consumer purchasing decisions.
The COVID-19 pandemic caused supply chain disruptions, and a main shortage of raw materials that affected production and hampered the market. Implementation of curfew, social distancing, quarantine, and lockdown practices by governments also impeded the domestic production of luxury furniture. Additionally, export restrictions and long delays at the borders impacted the transition and secure delivery of luxury furniture products worldwide.
Online e-retailers are increasingly gaining popularity among tech-savvy consumers, offering them convenience and a wide product selection. This enables them to compare prices and product features of various furniture pieces before making a purchase decision. This in turn, is boosting the online luxury furniture sales.
