NEW YORK -- The home furniture market size in the U.S. is estimated to increase by $8.22 billion from 2020 to 2025. However, the market's growth momentum will decelerate at a CAGR of 2.53%.
A report from Technavio provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market.
Technavio has segmented the market based on the product (living room furniture, bedroom furniture, storage furniture, and others).
The living room furniture segment will account for a significant share of the market's growth during the forecast period. It has been observed that consumers with higher purchasing power are likely to spend considerably on living room sofas and couches, entertainment units, and tables and tabletops. Moreover, many consumers wish to buy multifunctional or multipurpose sofas and couches due to the shrinking living spaces in the US.
One of the key factors driving growth in the home furniture market in the US is the improving residential construction market. There has been a significant rise in the number of women joining the workforce and living independently. As a result, there is a raising need for service apartments and single-story houses. This, in turn, is boosting the demand for home furniture in the country. The unemployment rates among women have also declined considerably over the last few years. This is making them a potential section of the population who can own or rent apartments/houses. Therefore, they are expected to contribute majorly to the home furniture market in the US. The continuously increasing immigrant population in the US is another factor adding to the rapid rise in the real estate industry, fueling the demand for home furniture. These individuals invest heavily in both real estate and the home furniture market.
The surging demand for eco-friendly furniture is another factor supporting the home furniture market share growth in the US. The idea of green furniture or eco-friendly furniture was always prevalent. However, it is expected to gain momentum in the coming years owing to the rising demand for sustainable products from consumers. Owing to continuous urbanization and industrialization, there has been a considerable increase in environmental implications such as global warming. This, in turn, has created an awareness among consumers regarding the benefits of using eco-friendly or green furniture. The rising demand for eco-friendly furniture has also prompted manufacturers to keep a check on carbon footprints and modify their styles in such a way that they cater to the demands of consumers without causing any damage to the environment.
The inherent threat from re-used furniture market will be a major challenge for the home furniture market growth in the US. Re-used or refurbished furniture has significantly come up as an option for millennials who are just moving out of their houses and have less financial stability. They tend to buy refurbished furniture items at comparatively lower prices, impacting the revenues of the sellers of newly built furniture. Therefore, this shift in the consumer's mindset has caused the market to slow down in the last few years. In addition, there has been a demographic shift, and the baby boomers have started shifting from their bigger apartments to smaller living spaces, which has led to an increase in the discarding of old conventional furniture. The discarded furniture is resold to new home buyers, thus reducing the demand for contemporary furniture items.
- Ashley Furniture Industries Inc.: The company offers home furniture, such as accent tables, kids' beds, bathroom storage, and top-rated desks.
- Inter IKEA Holding BV: The company offers home furniture, such as sofas and armchairs, beds, chairs, study tables, and small storage and organizers.
- Klaussner Home Furnishings: The company offers home furniture, such as sofas, chairs, occasional chairs, and living area furniture.
- LaZBoy Inc.: The company offers home furniture, such as recliners, sectionals, sofas, chairs, and loveseats.
For information or a sample of the report, click here.
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