Luxury furniture market: regional study and dynamics

Luxury furniture is any moveable item of furniture that trained artisans from the finest materials have expertly crafted. It raises the aesthetic value of public and private buildings, including hotels, offices, residences, and other indoor and outdoor spaces. People in urbanized areas are increasingly adopting luxury furnishings due to their evolving lifestyles and constantly rising living standards. Also, manufacturers are creating eye-catching new furniture designs. And working with interior designers to boost their awareness and attract a larger client base.

In 2021, the market value of luxury furniture was worth USD 28.79 billion. And by 2030 it will reach USD 41.82 billion, expanding at a 4.23% CAGR during the forecast period. 

The demand for luxury furniture is continuously being impacted by the real estate industry's tremendous rise in both the residential and commercial sectors. Also, the market for luxury furniture is expanding due to the growing population worldwide. And the spread of online retailing, particularly in developing countries.

Market Dynamics

Drivers

The demand for home renovation among customers will rise as a result of increased construction activity and changing lifestyles around the world. The demand for luxury furniture has increased as the global construction market has grown from USD 10 trillion in 2019 to USD 11.7 trillion in 2020. The United States had a per capita disposable income of USD 54,854 in 2019. Which fell in the first half of 2021 and will rise in 2022. Also, rising disposable money incentivizes people to upgrade their lifestyles and buy opulent real estate.

Social media significantly influence people's decisions to invest in home improvements. DIY home repair initiatives on social media and Ready-To-Assemble (RTA) furniture on online platforms typically advertise options that are simple to install, environmentally friendly, and have a posh and contemporary appearance. Demand for luxury furniture in home renovation will rise in response to interest in updating living spaces with upscale furnishings and appliances. The expanding building sector and interior design activities in developing nations will also impact the expansion of the market. 

The cost of acquiring raw materials for furniture design will restrain market expansion. Also, the market expansion of luxury furniture is being constrained by a shortage of professional labor to merge attractive designs into furniture.

Opportunity 

The market for luxury furniture has been growing at an enormous rate because of the interest in the development of real estate items. The population and increasing number of major players contribute to the luxury furniture market rapid expansion. Furniture is used in various settings, including restaurants, hotels, and homes, for seating, storage, Luxury Outdoor Furniture, and home décor. Over the forecast period, factors such as evolving lifestyles. And the desire for luxury will fuel expansion in the market for luxury furniture.

Market Segmentation

By Material

The wooden segment was the industry leader in 2021, with a revenue share of nearly 40%. Furniture makers have accepted guidelines for producing chairs, lamps, and tables by combining premium wood with unconventional forms. Wooden furniture is widely adopted due to features like organic appearance, flexibility, durability, simplicity of cleaning, and cost-effectiveness. The wooden furniture industry has forged a strong position in the market due to its rich and refined design features. Teak, sugi, mahogany, fir, birch, and redwood are common woods used in furniture construction. 

By End-User 

In 2021, the domestic segment led the entire market with a revenue share of nearly 66.15%. Well-designed and expertly produced ornamental furniture is typically utilized in domestic homes' kitchen areas, at the front door, and in the bedrooms or living rooms, which significantly accelerates the market's overall growth rate.

Regional Analysis

Europe ruled the entire regional market in 2021 with a revenue share of 43.5%. Many significant players in the European luxury furniture market have started their websites and are collaborating with online merchants to expand their distribution networks. These elements are fuelling market expansion in this area.

Furthermore, the Asia Pacific regional market will expand at a rapid rate of 5% CAGR during the forecast period. Due to increased living standards and disposable income, China has emerged as the region's largest and fastest-growing furniture market. 

Key Players 

• Duresta Upholstery Ltd.
• Cassina
• Kannustalo Ltd
• Muebles Pico
• Iola Furniture Ltd.
• Henredon Furniture Industries Inc.
• Giovanni Visentin
• Laura Ashley Holding Plc
• Scavolini
• Valderamobili
• Nella Vetrina
• Turri S.r.l.

In 2021, the market value of luxury furniture was worth USD 28.79 billion. And by 2030 it will reach USD 41.82 billion, expanding at a 4.23% CAGR during the forecast period. The demand for luxury furniture is impact by the real estate industry's tremendous rise in both the residential and commercial sectors. Also, the market for luxury furniture is expanding due to the growing population worldwide. And the spread of online retailing, particularly in developing countries.

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