The effects of the pandemic continue to dictate the supply

The global furniture market was worth USD 493.6 billion in 2021. It is predicted that by 2028 this value will reach even USD 720.2 billion, which means an average annual growth of 5.5%. It seems that the industry has dealt with the decline that we recorded in 2020 as a result of the pandemic. However, this does not mean that COVID-19 and the lockdown have not had an impact on the industry. On the contrary, the effects of these events are visible to this day, and the market we operate in has changed in many aspects.

Of course, this is primarily related to the lockdown and the transfer of work to the home space. The latter phenomenon – despite the first predictions – was not temporary, becoming an option or a standard of work in many companies. The result for the furniture market is an increase in demand for desks, tables, chairs and stools, and even for sofas, which in the home office space allow for greater comfort during online meetings or during breaks. The growing interest in gardening and computer games has increased the demand for garden furniture and ergonomic chairs and desks.

The authors of the report also observed that consumers attach much more to the quality and durability of furniture, which is also confirmed by our observations. Large e-commerce stores, on the other hand, recorded an increase in phrases related to furniture made of ecological materials and coming from sustainable production. Furniture made of formaldehyde-free materials has been particularly popular since 2020. The growing awareness of consumers and the return to high quality creates great sales potential for interesting, luxurious collections that stand out on the market with their idea and sustainable production. These types of products are primarily used by hotels and restaurants that strive to provide their customers with high comfort.

Price is a significant decision factor

The situation is slightly different among consumers with average income. This group focuses on lower costs, sales, bargains, and even on obtaining second-hand furniture. This is one of the tendencies that may hamper sales on the market. Just like the huge competition from unorganized industry players, which disturbs the constant development of companies that have been operating on the market for years. Added to this are the fluctuating prices of raw materials and the changing import and customs duties on equipment items that the whole world is facing.

All of this will affect the choice of materials. The largest market share (59.03%) is invariably held by wood, which ensures the highest profitability, both from the point of view of the producer and the consumer. Products made of wood are also the most popular choice for home spaces and dominate the European market. The authors of the report estimate that the demand for the metal, which ensures high durability, will also increase in the coming years. Plastic products, on the other hand, face an ecological challenge – consumers will pay attention to whether they are made of recycled material or another environmentally friendly alternative.

What are the big ones planning?

The authors of the report also looked at the large global players in the furniture market, their activities and plans for the future. They focus on two trends:

• the regular introduction of various types of luxury furnishings to encourage people to buy these types of products and thus generate more revenue;
• developing its activities on international markets to meet global competition.

This article is based on a summary prepared by Fortune Business Insights. Source: www.fortunebusinessinsights.com/furniture-market-106357

If you want to follow more current trends in the industry, check out our other entries:

• Trends in furniture and interior design. Report from the SICAM 2022 fair
• Colour Road 2022/23. A guide to colour and design trends from RENOLIT
• How will trends and the situation on the furniture market affect the industry? Conclusions from the Hausmesse fair