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The global luxury furniture market size was valued at USD 21.67 billion in 2022 and is projected to grow from USD 22.78 billion in 2023 to USD 33.31 billion by 2030, exhibiting a CAGR of 5.57% during the forecast period.
Luxury furniture pieces are made from high-quality materials and come in a variety of designs. Some of the most popular materials used to make these products include metal, glass, wood, and others. The industry is primarily driven by the overall consumer spending and other factors such as household debt levels, per-capita income, and consumer expectations. The ever-increasing disposable income, improvement in living standards, and the growing demand for furniture are contributing to the market growth. Furthermore, the rising trend of home renovation and decoration among the urban population has fueled the industry progress.
Selecting the right furniture for schools, homes, offices, and hotels plays a vital role in improving an individual's mental and physical health. Using high-quality materials, such as wood and leather, in the final product not only enhances the aesthetic appeal of furniture pieces but also makes them more durable. The rising use of designer furniture for residential purposes has further expanded the luxury furniture market share.
Border Closures and Lockdowns during COVID-19 Caused Major Decline in Market Development
The COVID-19 pandemic negatively affected the global market. This was due to the implementation of lockdown and other restrictions in 2020, resulting in the complete closure of international and domestic borders. Restrictions were also imposed on the imports and exports of goods and raw materials. In addition, lack of workers' availability forced manufacturers to close the production of luxury furniture products. These factors impeded the global furniture industry progress.
However, the outbreak has significantly impacted consumer behavior and manufacturing trends worldwide. The COVID-19 crisis has increased the usage of automation and digitalization in the luxury furniture industry. Tech-savvy consumers seeking a personalized shopping experience and competitive prices are forcing reputed luxury furniture manufacturers to innovate their existing product offerings. Moreover, continuous improvements in production technologies have enabled leading companies to respond to the changing consumer demand and operational efficiency, thereby improving the market outlook.
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Rising Home Décor Projects to Drive Market Development
The increase in consumer demand for aesthetically appealing and eco-friendly luxury products to decorate homes, offices, hotels, and restaurants with exclusive furniture, wooden flooring, and other items has fueled the luxury furniture industry trends. In addition, population migration from rural to urban areas and increased consumer expenditure on high-quality décor products have created several business opportunities for the industry. There is a notable rise in awareness of international brands and trends in developing countries, and since the purchasing power of individuals in these economies has grown, they are splurging on luxurious furniture pieces. These are some of the significant factors spurring the market progress.
Some of the reputed industry players, such as Kimball International, Inc., Herman Miller, Inc. (Knoll Inc), DURESTA, Cassina S.p.A, and others, are aware of the rising younger population and their ever-changing buying pattern with respect to luxury products. This scenario has prompted manufacturers to constantly update their existing lineup of luxury furniture. Moreover, continuous innovation by companies in the production, design, and material used for making unique furniture pieces for home décor may further augment the industry development. The popularity of multifunctional furniture is rising among customers due to its high level of comfort. Manufacturers are also introducing aggressive marketing campaigns to promote their products on social media platforms, such as Instagram, Facebook, and YouTube to increase their consumer reach in less time and cost-effectively. These strategies are predicted to favor the global market outlook.
Rapid Growth of the Real Estate Sector to Contribute to the Luxury Furniture Market Growth
The real estate sector has recently experienced substantial growth due to the increased demand for office and residential spaces. The growing need for office space, conducive corporate environment, and urban and semi-urban accommodation have complemented the expansion of the real estate sector. Furthermore, the growing construction of residential and commercial buildings will drive the market progress. According to the India Brand Equity Foundation (IBEF), the Indian real estate sector is anticipated to reach USD 1 trillion in market size by 2030 from USD 200 billion in 2021, accounting for 13% of the country's GDP by 2025.
Furthermore, the high demand for luxury property has boosted the adoption of luxury interior furnishings in areas, such as bedrooms, offices, and kitchens. This factor is also expected to boost the sales of luxury furniture.
Rise in Online Retailing in the Furniture Industry to Drive Market Development
Major innovations in various technologies, such as the availability of high-speed internet networks and growing adoption of smart devices are bolstering the development of the global e-retail industry. These advances can make it easier for customers to purchase furniture through online channels. Furthermore, to meet the rising demand for online shopping globally, many companies have launched their own online stores to sell furniture.
For instance, Nilkamal Pvt. Ltd. has launched an online shopping portal featuring an exclusive range of @Home furniture, home furnishings, and upholstery. The availability of various product options and price comparisons on online shopping sites have increased the customer preference for online shopping. Online shopping is also becoming more popular as consumers can read reviews from previous buyers, compare different stores & products, and check product prices from different sellers. These factors may favor the usage of online shopping platforms to buy luxury furniture.
Availability of Counterfeit Products to Restrain Market Growth
The easy availability of various technologies to make exact imitations of luxury furniture can greatly hinder their overall quality, design, and finishing. This can adversely affect a manufacturer’s revenue margin, and discourage them to make heavy investments in conducting in-depth research & development. While counterfeit production is popular across the world, it is most common in developing countries with strong but low-cost manufacturing capacities, including many nations in Eastern Europe, Asia, and Latin America. Counterfeiting also includes placing the trademark or logo of a well-known brand on a product, but the product is not manufactured or authorized by that brand. The rising sale of counterfeit products has eroded the brand image of manufacturers, leading to loss of customer confidence. The growing preference for online platforms for selling and buying goods has led to a rapid rise in the global supply of counterfeit items, thereby adversely affecting the market trend.
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High Durability and Aesthetic Design Offered by Wooden Materials to Support Market Expansion
Based on raw material, the market is divided into wood, metal, plastic, and others. The wood segment is expected to hold a dominant market share owing to its adaptability and finishing. Wood is the most popular material due to its high aesthetic value, monetary value, and durability. Rapid expansion of the residential sector driven by economic growth, population, smart cities, and Foreign Direct Investment (FDI) are factors accelerating the demand for wooden furniture. A steady increase in the need for modern and customizable furniture to help customers lead a comfortable lifestyle will further drive the market growth.
There is a notable rise in the export and import of wood to construct furniture and flooring, further fueling the segment progress. According to the Observatory of Economic Complexity (OEC), in 2020, the top importers of wooden furniture were the U.S., Germany, France, the U.K., and Japan. On the other hand, the top exporters of furniture and wood in 2020 were China, Vietnam, Poland, Italy, and Germany. This scenario may boost the global market.
Robust Increase in Home Décor Projects to Fuel Market Growth
Based on end-user, the market is divided into residential and commercial. The residential segment is predicted to hold a significant market share owing to the high production of home décor and furnishing products. Rapid urbanization, rising disposable income, increasing focus on aesthetics, and extensive adoption of urban lifestyle are fueling the sales of luxury furniture. The shifting consumer trends toward innovative and decorative furniture products will further boost the industry value. The strong demand for eco-friendly and multifunctional luxury furniture in both the developed and developing economies might further support the market growth.
The commercial segment mainly includes office furniture, hospitality furniture, school furniture, and others. The product demand is rising significantly across the commercial sector due to the growing construction of offices and commercial complexes.
Growing Demand for Personalized Shopping Experience to Augment Preference for Offline Sales Channels
Based on distribution channel, the market is divided into online and offline. The offline segment is predicted to capture a sizable market share as it offers customers a personalized experience and allows them to check a product’s quality through physical inspection. Factors, such as growing workforce, increasing urbanization, and disposable income, are driving the growth of offline distribution channels. These retailers are also available across the globe and are becoming an important sales channel for manufacturers. Nowadays, consumers are looking for customized furniture products for residential and commercial purposes, owing to which they mainly prefer offline sales channels for purchasing goods.
However, online sales channels are also likely to grow significantly during the forecast period due to a strong rise in e-commerce platforms. Many manufacturers are launching their own e-commerce platforms to cater to the growing demand for these services. For instance, in April 2021, Herman Miller launched its new e-commerce store. Furthermore, the launch will help increase the customer base in less time and increase product sales for the company.
Europe Luxury Furniture Market Size, 2022 (USD Billion)
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In terms of region, the market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa (MEA). The Europe region is anticipated to capture a sizable market share during the forecast period. Many companies across Europe are involved in constant innovation and upgrading the technologies used in the production of luxury furniture. This has spurred the product sales in the region.
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The Asia Pacific region is also expected to showcase substantial growth during the forecast timeframe. The demand for and construction of residential and commercial properties is increasing exponentially owing to a notable rise in disposable income, urbanization, and employment in the APAC region. Increased innovation coupled with high consumer preference for designer luxury furniture will continue to foster the market progress. Also, the easy availability of various luxury furniture products on both online and offline platforms may help the Asia Pacific market to grow.
Reputed organizations in this market are adopting several competitive strategies including product innovation and new product launches to gain a competitive edge over their rivals. Recent years have witnessed an appreciable rise in the demand for innovative products. As a result, key players in the market are focusing on developing products with advanced features.
An Infographic Representation of Luxury Furniture Market
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The research report gives a comprehensive analysis of the market and highlights critical aspects such as prominent companies, competitive landscape, raw materials, end-users, and distribution channels. Besides this, the report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market growth.
CAGR of 5.57% from 2023 to 2030
Value (USD Billion)
By Raw Material
By Distribution Channel
Fortune Business Insights says that the global market size was USD 21.67 billion in 2022 and is anticipated to reach USD 33.31 billion by 2030.
In 2022, the global market value stood at USD 21.67 billion.
Exhibiting a CAGR of 5.57%, the global market will exhibit steady growth over the forecast period.
By end-user, the residential segment is expected to dominate the market throughout the forecast timeframe of 2023-2030.
Rapid growth of the real estate sector will be driving the sales of luxury furniture products during the analysis period of 2023-2030.
SCAVOLINI S.P.A. (Italy), Cassina S.p.A (Italy), and Kimball International, Inc. (U.S.) are the leading companies worldwide.
Europe dominated the global market in 2022.
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