Luxury Furniture Market

According to Stratistics MRC, the Global Luxury Furniture Market is accounted for $21.67 billion in 2022 and is expected to reach $33.44 billion by 2028 growing at a CAGR of 7.5% during the forecast period. Luxury furniture is manufactured from high-quality materials and comes in a range of styles. Metal, glass, wood, and other materials are commonly utilised to manufacture these objects. The business is generally driven by total consumer spending as well as other factors like as family debt levels, per-capita income, and consumer expectations. The rising disposable income, rising living standards, and rising demand for furniture all contribute to market expansion. Furthermore, the growing trend of house restoration and decoration among the urban population has supported industry growth.

According to the Ministry of Housing and Urban Affairs, the Indian government approved approximately 1 billion residences during the fiscal year 2019-2020 under the Pradhan Mantri Awas Yojana scheme.



Market Dynamics:

Driver:

Rapid growth of the real estate

Due to rising demand for business and residential spaces, the real estate sector has lately enjoyed significant expansion. The increased need for office space, a pleasant corporate environment, and urban and semi-urban housing has aided the rise of the real estate sector. Furthermore, rising residential and commercial building construction will propel market growth. In addition, the strong demand for luxury houses has increased the use of luxury interior furniture in areas such as bedrooms, offices, and kitchens. This aspect is also likely to boost sales of high-end furniture.

Restraint:

Availability of counterfeit products

The ease with which numerous technologies may be used to create identical replicas of luxury furniture can severely impair its overall quality, design, and finishing. This might have a negative impact on a manufacturer's revenue margin and deter them from investing more in in-depth research and development. Counterfeiting also involves using a well-known brand's trademark or logo on a product that is not made or authorised by that brand. The growing selling of counterfeit goods has harmed manufacturers' brand image, resulting in a loss of customer trust.

Opportunity:

Rising online retailing

Major technological advancements, such as the availability of high-speed internet networks and the increasing usage of smart gadgets, are boosting the growth of the worldwide e-commerce business. These advancements may make it easier for people to purchase furniture online. Furthermore, to accommodate the growing worldwide demand for online purchasing, numerous corporations have started their own online furniture sites. Customer’s affinity for online buying has grown as a result of the availability of many product alternatives and price comparisons on online shopping sites. Online shopping is also getting more popular since it allows customers to read reviews from past purchasers, compare different stores and items, and compare product pricing from other vendors. These reasons may favour using online shopping platforms to purchase luxury furniture.

Threat:

Scarcity of skilled labours

Skilling has taken on a completely new dimension in the age of automation. People are no longer happy with classic things as their tastes evolve. The trend is towards sleek, western-style furniture that is both aesthetically pleasing and well-made. The lack of highly qualified personnel in the global luxury furniture market, as well as the rising price of raw materials, are the significant obstacles for the sector, impeding market expansion. Increasing costs and the need to improve supply chain visibility and efficiency are other major challenges.

Covid-19 Impact

The worldwide market was harmed by the COVID-19 epidemic. This occurred owing to the imposition of lockdown and other limitations in 2020, which resulted in the total closure of international and internal borders. Import and export restrictions on commodities and raw materials were also enforced. Furthermore, a scarcity of available personnel prompted manufacturers to halt production of premium furniture goods. These problems hampered the growth of the global furniture business.

The wood segment is expected to be the largest during the forecast period

The wood segment is estimated to have a lucrative growth, due to its versatility and finishing, wood is likely to have a strong market share. Because of its great aesthetic appeal, monetary worth, and durability, wood is the most favoured material. The fast expansion of the residential sector, fuelled by economic growth, population, smart cities, and foreign direct investment (FDI), is fuelling demand for wooden furniture. A consistent increase in the need for trendy and customisable furniture to assist clients live a pleasant lifestyle will drive market.

The residential segment is expected to have the highest CAGR during the forecast period

The residential segment is anticipated to witness the highest CAGR growth during the forecast period, due to the increasing production of home décor and furnishing items, the residential segment is expected to have a considerable market share. Rapid urbanisation, higher disposable income, a greater emphasis on aesthetics, and widespread adoption of urban lifestyles are driving up sales of luxury furniture. Consumer tendencies towards creative and attractive furniture goods will raise the industries worth even more. The high demand for eco-friendly and multifunctional luxury furniture in both established and emerging nations may boost market expansion further.

Region with highest share:

Asia Pacific is projected to hold the highest market share during the forecast period owing to the APAC region's disposable income, urbanisation, and employment are all driving the demand for the building of residential and commercial properties. Increased innovation, along with a strong customer desire for designer luxury furniture, will drive market growth in the coming years. Furthermore, the simple availability of numerous luxury furniture goods on both online and offline platforms may aid in the growth of the Asia Pacific market.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the governments that are expanding their efforts in developing futuristic, publicly accessible public infrastructure, and they are collaborating with private enterprises to accomplish this aim. The Germany and UK, for example, are experiencing rapid growth in commercial and residential building to meet the growing demands of the metropolitan population. These innovations will encourage the use of appealing and high-end furnishing solutions.



Key players in the market

Some of the key players profiled in the Luxury Furniture Market include IKEA, Brown Jordan International, Scavolini S.P.A, Kimball International. Inv, Muebles PICO SA, Haworth, Inc, Vivono, Boca do Lobo, Herman Miller.Inc, Duresta, Valderamobili, Iola Furniture Ltd, Nella Vetrina, Visentin, Henredon Furniture Industries Inc, Mobel Grace, Godraj and Boyce, Ashley Furniture Industries Inc. and Durian

Key Developments:

In March 2023, IKEA and Little Sun launch SAMMANLÄNKAD exploring light sources powered by the sun, the result of the collaboration is SAMMANLÄNKAD: two sun-powered LED lamps designed to awaken interest in how the sun can power everyday objects.

In March 2023, IKEA launches the ÖMSESIDIG collection exploring festivities in Latin America, the result is ÖMSESIDIG, a limited-edition collection consisting of 30 products that help set the mood for celebrations and gatherings.

Raw Materials Covered:
• Wood
• Plastic
• Metal
• Other Raw Materials

Product Types Covered:
• Tables
• Bedroom
• Cabinets
• Chairs & Sofas
• Accessories
• Lighting
• Other Product Types

End Users Covered:
• Commercial
• Residential

Distribution Channels Covered:
• Online
• Offline

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances