Wooden Furniture Market – Forecast and Analysis
The wooden furniture market share is expected to increase to USD 49.3 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 2.73%. This wooden furniture market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches.
The wooden furniture market share growth in the home segment will be significant during the forecast period. The home segment includes furniture that is used in living rooms, bedrooms, kitchen spaces, dining rooms, bathrooms, and other areas. Decorative pieces are also in high demand in residential spaces. Moreover, the increased demand for premium and multifunctional furniture has contributed to product innovation and product differentiation. Thus, the increasing demand for premium home furniture is expected to boost the growth of the home segment during the forecast period.
Wooden Furniture Market: Key Drivers, Trends, and Challenges
There has been a negative impact on the market growth during and after the post-COVID-19 era. The growth of the real estate and construction industry is notably driving the wooden furniture market growth. However, factors such as cost challenges faced by manufacturers and vendors may impede the market growth. Research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the wooden furniture industry. The holistic analysis of the drivers will help deduce end goals and refine marketing strategies to gain a competitive edge.
Key Wooden Furniture Market Driver
The growth of the real estate and construction industry is one of the key drivers fueling the wooden furniture market growth. Globally, there is an increase in the number of single-person and two-person households, which has contributed to an increased number of home constructions. On the other hand, the longevity of baby boomers, growing urbanization, and lifestyle patterns of millennials have contributed to a corresponding demand for customized wooden furniture. Furthermore, increased investments in the global real estate market during the past decade have significantly driven the global wooden furniture market. The growth of the real estate industry is not merely restricted to developed regions; developing economies, too, are witnessing expanding real estate sectors. Thus, the growth of the real estate and construction industry will drive the wooden furniture market growth during the forecast period.
Key Wooden Furniture Market Trend
The increasing adoption of eco-friendly furniture is a crucial wooden furniture market trend supporting the market growth. There are increasing concerns regarding global warming that have led to the adoption of eco-friendly furniture. Nowadays, consumers are more inclined toward eco-friendly furniture, such as furniture made from Moso bamboo, which is harder and more durable than oak furniture. Furthermore, several non-profit trade associations have introduced guidelines for suppliers and manufacturers of eco-friendly furniture. These guidelines help them ensure that their business and corporate activities promote health, environmental equilibrium, and human well-being. Thus, such factors will influence the growth of the global wooden furniture market during the forecast period.
Key Wooden Furniture Market Challenge
Cost challenges faced by manufacturers and vendors are one of the factors challenging the wooden furniture market growth. The end-product pricing is a sum of the costs of the supplier, manufacturing, and storage, along with the inventory management expenses. High transportation costs restrain the manufacturing processes and limit the activity rates of manufacturers and vendors. Generally, transportation costs are incurred by vendors. The vendors are liable to incur taxes, duties, and fuel prices. An upsurge in transportation costs directly increases the cost of the end product. Moreover, the global wooden furniture market manufacturers are concerned about the end product’s safety. Thus, such challenges faced by manufacturers and vendors may limit the wooden furniture market growth during the forecast period.
This wooden furniture market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
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 wooden furniture market in APAC witnessed a decline in 2020, owing to the outbreak of COVID-19. However, the market is expected to witness an increase in furniture sales through e-commerce channels during the forecast period. Moreover, economies have been gradually recovering from the crisis caused by COVID-19 due to the removal of lockdown restrictions and the large-scale COVID-19 vaccination programs conducted in the region, which are expected to drive market growth during the forecast period.