The high-end furniture market share in North America is expected to increase by USD 2.69 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.38% according to a report from Technavio.
Key High-end Furniture Market Drivers in North America
The rising popularity of multi-functional luxury furniture is one of the key drivers supporting the high-end furniture market growth in North America. For instance, a bedroom can be rapidly transformed into an entertainment and study area using a wall bed. Other high-end multi-functional furniture products include chairs that can fold into couches, beds that can rotate to transform into bookshelves, and desks that transform into dining tables.
The growing real estate industry will also facilitate the high-end furniture market growth over the forecast period.
Key High-end Furniture Market Trends in North America
Growth in demand for luxury furniture among millennials is one of the key trends contributing to the high-end furniture market growth in North America. The millennial population has been growing worldwide, an encouraging sign for vendors operating in the global luxury furniture market. The increase in disposable income among the millennial population has led to the rise in the adoption of high-end furniture among them. This trend is more common in the high-end furniture market in the recliner sofa and recliner chair categories. Therefore, a rise in the demand for high-end furniture among millennials is a significant trend that will positively impact the market in North America during the forecast period.
Key High-end Furniture Market Challenge in North America
Frequent product recalls is one factor hindering the high-end furniture market growth in North America. Product recalls impact the reputation of any sector and result in operational and financial constraints among players operating in the high-end furniture market. In the past few years, there have been many recalls in the high-end furniture market. These are expected to impact the market during the forecast period negatively.
The high-end furniture market in North America is fragmented, and the vendors are deploying growth strategies such as price, quality, innovation, brand, and variety to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
COVID Impact and Recovery Analysis
The high-end furniture market witnessed slow growth due to the outbreak of COVID-19 in 2020. Vendors are expected to recover from the slowdown during the forecast period. Offline distribution channels are the most preferred means for distributing high-end furniture items by vendors, manufacturers, and distributors operating in the global luxury furniture market. The major factor is the tangential factor associated with the offline distribution of luxury furniture. Offline stores enable consumers to touch and feel high-end furniture as a part of the buying process, enabling them to experience the product before purchasing them physically. Such factors will boost the segment growth during the forecast period.