The folding furniture market share is expected to increase by USD 4.44 billion from 2020 to 2025. The market’s growth momentum will accelerate at a CAGR of 6.58%, according to a report from Technavio.
Key Folding Furniture Market Driver
The increasing demand for space-saving furniture is one of the primary factors driving the folding furniture market growth. The shrinking apartment size in urban and metropolitan cities, especially tier one and tier two cities, has resulted in high demand for multi-purpose or space-saving furniture. Furniture such as wall-mounted beds and chairs, sofas that can convert to beds, and other folding furniture are multi-functional, compact, and easy to fit. They are, therefore, gaining popularity among end-users because of these characteristics.
Significant lifestyle changes have also increased the demand for small studio apartments in developed economies. This boosts the adoption of folding furniture; hence, several furniture companies are offering folding furniture for apartments and studio apartments to cater to this demand. These factors are expected to drive the folding furniture market growth during the forecast period.
Key Folding Furniture Market Challenge
One of the significant factors that are expected to restrict the market’s growth is the various stringent regulations associated with manufacturing furniture and foldable furniture. Various strict manufacturing, design, and environmental regulations can make producing folding furniture difficult. Violations of these environmental regulations can cause significant fines for manufacturers. Also, these regulations vary between countries. Although these varying regulations are advantageous to regional and local vendors, they are a substantial threat to international vendors as they must change their production process according to regional regulations.
Folding Furniture Market Growth
The folding furniture market share growth in the offline segment will be significant during the forecast period. This market generally consists of specialty stores, supermarkets, hypermarkets, and department stores. A marked increase in business expansion complemented by the steady rise in the number of stores providing home furniture is among the significant contributors to the growth of hypermarkets in the world. The introduction of innovative service solutions and experiential sales experience using modern technologies such as AR, VR, and other visual technologies in furniture and furnishing stores such as Wayfair, IKEA, and others are prominent factors that cater to the growth of the market.