Residential furniture appears to be faring better than other wood products markets hard hit by the COVID-19 pandemic. New furniture orders grew a whopping 51% in August compared to 2019, according to research analyst firm Smith Leonard, and are up 6% year-to-date compared to last year.
“Shipments were up 3% over August 2019 as participants are having a hard time either ramping up domestic production or importers are having trouble ramping up production overseas as well as getting containers to flow,” noted Ken Smith, managing partner at Smith Leonard in the latest Furniture Insights survey of manufacturers and distributors. Year-to-date, shipments are 11% below last year’s figures.
“After three difficult months of significant negative growth in orders compared to 2019 results by month, our survey has shown three straight months of very significant increases in orders, and from all of our conversations, we expect our survey to continue to show significant growth in September and October and even into November,” Smith said. Backlogs were up in August, rising 19% over July, and significantly higher (102%) over August 2019.
Online orders of residential furniture have surged during the pandemic, although in-store purchases continue to be the preferred method of shopping.
• Despite the pandemic, in-store shopping is still the preferred method for furniture buying, with 67% of respondents having never bought furniture online, according to the Provoke Insights survey, Furniture Purchasing Habits & Moving Behaviors. (June 2020, 600 respondents).
• The global luxury furniture market was valued at $26 billion USD in 2019, and is projected to reach $32.2 billion in 2025, growing at a CAGR of 3.62 during 2020-2025, according to IMARC Group’s report, Luxury Furniture Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025. Europe accounts for the majority of the global market, followed by North America and Asia Pacific.
• The furniture industry, accounts for a significant part of Quebec’s manufacturing sector, representing roughly 25,000 jobs, and making it one of the top 7 employers in the province’s manufacturing sector, according to the Quebec Furniture Manufacturers Assn.
• A report by Mordor Intelligence identifies the furniture manufacturing industry in Mexico as comprised of 675 companies, with a workforce of more than 52,000. Companies vary from international brands to those that focus on the domestic market. Factories are mainly small in size or even micro, with production mainly in eight states: Jalisco, Mexico City, Coahuila, Nuevo Leon, State of Mexico, Chihuahua, Baja, and Puebla.
• A report by Grand View Research Inc. finds the global kids' furniture market size, valued at $29.4 billion USD in 2018, is expected to grow at a CAGR of 4.48% from 2019 to 2025, reaching $39.96 billion. Rising spending on nursery rooms, playroom, and study room décor is expected to drive the growth.
• The global furniture market (residential and commercial) was at $609.78 billion in 2019. Global Market Insights’ projections call for a CAGR of 5.4% between 2020-2026, to more than $750 billion by 2026. The wooden furniture segment dominates in market share, accounting for more than 60%.
Market Data Sources: U.S. Bureau of Labor Statistics, U.S. Census Bureau, Statista, U.S. International Trade Administration, Statistics Canada (StatCan), Smith Leonard, American Home Furnishings Alliance (AHFA), Mann, Armistead & Epperson Ltd., Quebec Furniture Manufacturers Assn., Provoke Insights, IMARC Group, Grand View Research Inc., Furniture Today, Mordor Intelligence, Global Market Insights.
Category: Residential furniture includes wood & upholstered furniture, casegoods, RTA, bedroom & youth, entertainment units.
Have something to say? Share your thoughts with us in the comments below.