Residential Furniture Market – Growth, Trends, Forecasts
The global residential furniture market is projected to grow at the rate of 4.4% during the forecast period between 2018 and 2023. The market is expected to witness robust growth owing to the change in housing units, increasing urbanization rate, and demand for ready-to-assemble (RTA), multi-functional, and eco-friendly furniture, supported by the increasing popularity of home décor products. However, supply chain and logistics complexity, long replacement cycle, fluctuations in raw material costs, and easy availability of counterfeit products are restraining the growth of the residential furniture market.
With the population growth across the globe, particularly in urban cities, real estate property prices have increased significantly. This has led to a considerable reduction in available sizes of homes. As available space is smaller, consumers look for compact and portable furnishings to allow for efficient use. The introduction of RTA and multi-functional furniture with storage facilities have gained popularity in the recent past. Modern furniture includes storage spaces in beds, tables, and entertainment consoles. Multi-functional sofas and recliner chairs can be folded and used as beds. Thus, there’s a rise in demand for RTA and multi-functional furniture, which is expected to increase the growth of the residential furniture market globally during the forecast period.
The evolving retail industry, especially in developing countries, is marked by the evolving retail landscape through increased hypermarket, supermarket, and specialty formats. Comfort and convenience are increasingly becoming important to customers because of their hectic lifestyles and work schedules. Large organized retail stores stock numerous brands and a variety of residential furniture products under one roof, providing more options to consumers and promoting a seamless shopping experience. These stores also stock furnishing and other home décor products to fulfil the requirements of shoppers.
With the increased preference for branded products among consumers, the importance of organized retailers carrying branded furniture and other home furnishing products has also increased. The penetration of organized retail will also enable consumers to seek information about various brands and compare prices and quality, resulting in better purchase decisions.