Wooden Furniture Market size is estimated to surpass USD 580 billion by 2025; according to a new research report by Global Market Insights, Inc.
Growing demand for modular and elegant wooden furniture in both urban and rural areas across the globe is anticipated to drive the wooden furniture market. Rising consumer preference of e-commerce channels for purchasing the products owing to benefits including availability of higher discounts, customization options and faster delivery this will fuel the industry size. In addition, increasing popularity of luxury wooden furniture for improving the home and office interior designs will provide potential growth opportunities for the industry expansion.
Growing concerns regarding global warming has resulted in an increase in demand for eco-friendly furniture among the consumers thereby enabling the manufacturers to develop products using sustainable eco-friendly material. Moreover, wooden furniture market participants are increasingly focusing on providing eco-friendly and adaptable products for gaining a competitive edge in the market.
Growing real estate investments across the globe has resulted to increase in the number of commercial complexes, residential buildings and office spaces thereby fueling the product demand. Also, rising disposable income in conjunction with improving living standards coupled with increase in the number of nuclear families are strongly supporting the demand in the industry. Additionally, increasing requirement for modern office interiors offering productive and comfortable working environment will proliferate wooden furniture market expansion.
Growing preference for compact & portable furniture for optimum space utilization are strongly supporting the demand in the industry. Industry players are constantly focusing on enhancing their product portfolio and upgrading their solutions to gain competitive advantage and enhance their market share.
Residential segment accounted for more than 65% of the wooden furniture market share in 2018. Growing consumer inclination towards purchasing luxury furniture and home decor products with unique designs and excellent aesthetics have enhanced the product demand in residential buildings. In addition, favorable government housing schemes and policies coupled with rise in the number of single households that are looking for basic living, bedroom and kitchen configurations is anticipated to further steer the demand in the industry.
Commercial segment will witness CAGR at over 6% up to 2025. Modern work life concepts such as study rooms of learning oriented kids, teenagers and students have urged the need for cutting edge, modular furnishings to generate a better learning atmosphere. For instance, in March 2017, Microsoft announced to collaborate with Steelcase for developing technology-enabled workplace solutions by upgrading Microsoft architecture and furniture that would help in increasing creativity among employees. Additionally, rising investments toward construction and remodeling of new hotels, educational institutions, hospitals and offices will positively influence market growth.
Asia Pacific leads the wooden furniture market accounting for over 45% of the industry share in 2018. Factors such as rising disposable income, rapid urbanization coupled with improvement in the living standards are among the key factors stimulating the growth of the product across the region. Rapid growth in the tourism and hospitality industry coupled with high preference for traditional wooden furniture will further augment the regional growth.
North America wooden furniture market will witness CAGR of over 5.5% from 2019 to 2025. Increasing demand for elegant and modular furniture in the region owing to higher growth in the real estate sector have escalated the industry share. Presence of key players offering luxurious interior products coupled with high popularity of online distribution channels that offer convenience and timesaving will boost the regional growth. For instance, in April 2017, Ethan Allen to collaborate with Amazon for acquiring larger consumer base and expansion of its geographical reach by utilizing Amazon’s online sales platform.
Herman Miller, Inc, Bush Industries Inc., Dorel Industries Inc., Natuzzi S.p.A, Kinnarps AB, Sauder Woodworking Co, Kimball International, Meike International Household Products Co. Ltd. and Samson Holding Ltd., are among major wooden furniture manufacturers. Global wooden furniture market share is highly fragmented with the presence of large regional players and multinational corporations. The manufacturers are involved in mergers and acquisitions, product innovations, strategic investments, new product launches, utilization of online distribution platform and production capacity expansions for gaining a competitive share. For instance, in 2018, Dorel home acquired Alphason, a UK-based furniture company for expansion of its product portfolio and business across European market.