Global bedroom furniture market report: outlook and forecasts 2023-2028 (2023)

FAQs

Global bedroom furniture market report: outlook and forecasts 2023-2028? ›

The global furniture market is expected to grow at a CAGR of about 5.2% in the forecast period of 2023-2028, driven by the growing infrastructure and hospitality sectors.

Revenue in the Furniture market amounts to US$252.70bn in 2023. The market is expected to grow annually by 3.95% (CAGR 2023-2027). The market's largest segment is the segment Living Room Furniture with a market volume of US$70.61bn in 2023.

Despite this recent positivity, the impact of interest rate hikes and a dampened housing market will hit furniture sales in 2023, and GlobalData forecasts a 2.8% dip in the furniture market—with inflation masking the fall in volumes.

KEY MARKET INSIGHTS

The global furniture market size was USD 475.4 billion in 2020 and is projected to grow from USD 493.6 billion in 2021 to USD 720.2 billion by 2028 at a CAGR of 5.5% in the 2021-2028 period.

According to a research report published by SphericalInsights, the Global Furniture Market Size was valued at USD 548.38 billion in 2021 and expected to reach USD 780.8 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 5.1% during the forecast period.

It looks like retail sales will continue to be challenging in the first half of 2023. The BRC predicts retail sales will edge up between 1% and 2.3% in the first six months of year. However, the trade body forecasts a brighter second half, with retail sales expected to grow 3.6% to 4.7%.

January and July. Since retailers start selling next season's new furniture styles in stores and online in February and August, you'll find the best deals before then. This biannual cycle means you have two guaranteed times to shop at lower prices.

Key points. Inflation seems to be slowing, and some things could start to get cheaper in 2023. The cost of real estate, rental, cars, and gas could fall, at least a little. Don't get too excited about potential price drops, as there's still a lot of uncertainty about the economy.

Historically, home prices tend to rise over time, not fall. Prices are currently coming down in some markets, and the national median price was ever-so-slightly lower in February 2023 than it was in 2022, but experts do not expect dramatic drops.

What kind of furniture is in high demand? ›

Tulip tables, leather chairs, "cloud" coaches and tree stump nightstands are in high demand; here's how to shop for furniture and avoid supply chain delays.

And this year's numbers will show a continuation of slower growth, with predicted sales of $126.3 billion, up just 1.9% over 2022. Furniture store sales will be in line with the GDP figure, rising to $72.75 billion for a 1% increase over 2022's projected $72.05 billion.

The furniture market was estimated at USD 648.12 billion in 2021 and is expected to reach USD 677.09 billion in 2022.

As of 2020, IKEA was the eighthmost valuable retailer in the world, making it the most valuable furniture retail brand, valued at roughly 21 billion U.S. dollars.

Founded in 1943 in Älmhult, Sweden, IKEA is an internationally known furniture and home furnishings retailer. It has grown rapidly since its foundation and today it is the world's largest furniture company.

In 2023, there's going to be a shift in mindset from technical-based marketing to anticipation marketing. This will enable marketers to anticipate what customers want and then feed it into automation processes. This new mindset will now only make things more efficient but will enable personalization.

Trends such as knee-high splits, geometric cut-outs and sheer fabrics all lends themselves perfectly to a sultry skin moment, whereas for the inevitable open-air soirée, amping up the drama is easy with a 1970s It-girl-inspired hooded gown.

What is one small business trend to look out for in 2023? ›

Augmented reality and virtual reality will come into their own. Augmented reality (AR) and virtual reality (VR) have been in the zeitgeist for some time now, but they might see more widespread adoption by businesses in 2023. Best of all, small businesses could take the lead on the trend.

Store Fronts Will Become Virtual

By 2030, store windows will be used in conjunction with smartphone devices to create animated and curated visual output, as well as leasable space to generate more income.

That means you'll want to shop toward the end of winter (January and February) or the end of summer (August and September). Retailers will be discounting their old stock during these months to make room for the new styles. Presidents Day and Labor Day weekends are especially good times for sales.

The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID. The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024.

The U.S. economy is humming, at least in some key metrics, but most economists say that the nation remains on a crash course toward a likely recession within the next year. A survey conducted last month by the National Association for Business Economics found that 58% of economists expect a recession in 2023.

The combination of persistent buyer demand and low inventory has driven property prices up. There are fewer sellers, so prospective buyers need to contend with higher housing prices. As such, if you buy a home in 2023, you're likely to pay a premium.

Most experts do not expect a housing market crash in 2023 since many homeowners have built up significant equity in their homes. The issue is primarily an affordability crisis. High interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.

National Forecast Prices: February 2023 to February 2024

The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.2% from February 2023 to March 2023 and increase on a year-over-year basis by 3.7% from February 2023 to February 2024.

Will 2023 be a good year to buy a home? ›

California Association of Realtors (CAR) expects home prices to go up by 5.2% in 2023. In its report, CAR has indicated that housing affordability may go down by 23% next year, making room for large real estate investment appreciations over the next few years.

Warm and Calming Neutrals

Jill Elliott, the founder of Color Kind Studio, predicts a change in living room color schemes for 2023. “In the living room, we are seeing warm, calming blues, peach-pinks, and sophisticated neutrals like sable, mushroom, and ecru—these are really catching my eye for 2023,” she says.

What color of furniture is in for 2023? As we have discussed, natural materials such as wood, and earthy, grounding color palettes with a focus on green, brown and cream shades will be popular throughout 2023, helping to establish a calming, and tranquil atmosphere.

In 2022, demand is down for furniture, giving all of the back-ups a chance to catch up, but the impact of the past two years is still slowing down the whole industry. Now rather than waiting over six months for furniture, waits are only three to four months.

Home furnishing sales shot up 7.2% month over month in January, not adjusting for inflation. Sales are also up since last year, according to the Commerce Department. Overall, the pandemic has been a boon to makers of sofas and desks and kitchen cabinets.

While marketing costs are on the rise for all direct-to-consumer businesses, a high customer-acquisition cost is inherent to the furniture business, McCarthy said, adding, "It's not a category people buy frequently." Wayfair's sales have recently slumped in part because of waning demand for furniture.

Furniture e-commerce is on the rise

According to Comscore Digital Commerce Measurement, in 2021, the furniture and appliances category was one of the top three growing categories in digital commerce in the U.S., with an 81% year-over-year increase in consumer spending.

U.S. consumers in the 35-44 age group spend more, on average, for residential furniture than any other age category. Next highest is the 45-54 age group.

The State of The Furniture Industry as We Know It

At the start of 2023, the furniture sector faced the global economic slowdown that all industries faced. However, the rising cost of raw materials, supply chain issues and the ongoing energy crisis have further impacted furniture businesses around the world.

What is the biggest furniture company in the US? ›

Largest Furniture Companies Research Summary

The largest furniture company in the U.S. is Berkshire Hathaway, with a revenue of $276.094 billion. As of 2022, the U.S. furniture industry has a market size of $229.90 billion. The average American spends $534.17 per new piece of furniture.

High Point, North Carolina— NC Furniture Advisor. High Point is known as the Furniture Capital of the World. This North Carolina town is home to many US and international furniture manufacturers. The High Point Furniture Market occurs twice a year, and attracts 160,000 people to the city.

In 2021, the United States was the leading importer of furniture from the rest of the world, with an import value of around 67.7 billion U.S. dollars. Germany, ranking second, imported approximately 19 billion U.S. dollars worth of furniture that year.

In 2021, China was the leading exporter of furniture to the rest of the world, with an export value of approximately 87 billion U.S. dollars. Poland, ranking second, exported about 15.75 billion U.S. dollars worth of furniture that year.

U.S. furniture import trade partners 2021

In 2021, the United States' main trade partner for furniture imports was China, with a trade value of over 31 billion U.S. dollars. With less than half the trade value of imports from China, Vietnam was the second most important furniture supplier into the United States.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.

Since May 2022, when CBO published its previous baseline projections, the agency has lowered its projection of the growth of nominal GDP in 2023 from 4.5 percent to 3.1 percent.

And this year's numbers will show a continuation of slower growth, with predicted sales of $126.3 billion, up just 1.9% over 2022. Furniture store sales will be in line with the GDP figure, rising to $72.75 billion for a 1% increase over 2022's projected $72.05 billion.

The best recession stocks include consumer staples, utilities and healthcare companies, all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.

What are the top economic concerns for 2023? ›

Consumers are expected to cut back spending amid higher interest rates, lower real incomes, and significant declines in household net worth. Rising mortgage rates and soaring building costs will likely continue to weigh on the housing market, with residential fixed investment projected to decline further.

Many economists and financial experts are confident a recession will happen in 2023, but some, like Jamie Dimon, CEO of JP Morgan, are pushing predictions for a recession toward the end of 2023, feeling they might have overestimated the severity of and potential for a slowdown in the economy.

In a best-case scenario, the U.S. will likely see a 'soft landing' with low/slow growth across 2023 before picking up in 2024. However, a downside scenario is a real possibility and could see the U.S. enter a prolonged recession lasting well into 2024, as is currently forecast for the UK and Germany.

The target market for furniture businesses is people who love to furnish their houses with new furniture, but who don't like to shop around and get confused by the huge choice. Your target market is couples in their 30s and 40s. These people probably have a good job, and they probably live in family homes.

The markup on furniture is the difference between the retail price of a product and its wholesale cost. Typically, the average markup of furniture ranges from 20% to 50% based on the furniture's wholesale cost.

Founded in 1943 in Älmhult, Sweden, IKEA is an internationally known furniture and home furnishings retailer. It has grown rapidly since its foundation and today it is the world's largest furniture company.