Clear the situation
Since the outbreak of the global epidemic in 2020, the normalization of epidemic prevention and control and the improvement of demand for furniture and home life at home have led to the explosive growth of global demand for furniture and home products, and have also promoted furniture and home to become a popular track for cross-border e-commerce. According to Statista data, the global furniture and household goods market size in 2021 is about 1.3 trillion US dollars. So what is the current status of the global furniture and household goods industry, and what is the future development trend? The furniture and home concept referred to in this article are respectively, furniture refers to the equipment and facilities essential for human to maintain normal life, engage in production practice and carry out social activities, and mostly refers to wardrobes, tables, beds, sofas and other large items. The broad concept of home refers to a series of activities or items related to home decoration, furniture configuration, home storage and decoration supplies, electrical appliances and so on. The scope of household goods in this article only refers to household storage, decoration, appliances and some outdoor daily necessities and other products.
1-The global furniture market has entered a stage of steady growth, and the furniture trade is highly active
According to CSIL data, since 2004, the improvement of global consumption level led to the continuous expansion of furniture output value scale, but then affected by the financial crisis, the global furniture output value declined in 2010; Subsequently, during the period from 2011 to 2014 after the financial crisis, the global furniture output value recovered due to the impact of global monetary easing policies, but declined in 2015 due to the weakness of the European economy. Since 2016, the global furniture output value has gradually recovered with the continuous recovery of the global economy, and has risen to 509.8 billion US dollars by 2020, and the global furniture market has entered a stage of steady growth. According to Statista data, the global furniture market size will reach 650.700 billion US dollars in 2027, an increase of 140.9 billion US dollars compared to 2020, an increase of 27.64%.
Furniture is a kind of commodity with strong multilateral trade complementarity. In the cross-border flow of global goods, furniture trade is highly active. At present, among the major producers and consumers of the global furniture industry, the proportion of China’s self-production and self-marketing can reach 98%. The United States, which is also a big consumer of furniture, has 39% from imports and only 61% from its own production. It can be seen that in the United States, Europe and other countries or regions with a higher degree of market openness, the furniture market capacity is large, and the future with the development of the economic level of each country and the increase of per capita disposable income, the willingness to consume furniture will continue to grow.
2-China's furniture industry is undergoing structural transformation, and foreign trade is an important factor driving growth
China is currently the world’s largest furniture producer and exporter, with the largest consumer market. After more than 40 years of rapid development in the reform and opening up, China’s furniture industry has developed from a traditional handicraft industry to a modern large-scale industry based on mechanical automation production, furniture enterprises are also actively using the Internet, intelligent manufacturing, green production and other technologies to enhance the manufacturing level of the industry, currently China’s furniture industry is in a key stage of structural adjustment. In recent years, China’s furniture industry authorities and self-regulatory organizations have successively launched the “Light industry adjustment and revitalization Plan”, “China’s furniture industry intellectual property protection Measures”, “China’s furniture industry” 13th Five-Year “development Plan” and other policies to promote the furniture manufacturing industry to high-quality manufacturing, research and development of high-tech materials and design capabilities. Further promote the integration and upgrading of the domestic furniture industry to adapt to the new international situation, fully improve the industry integration force, enhance the added value of products and the level of foreign trade, and promote the growth of foreign trade.
Despite the impact of adverse external factors such as Sino-US trade friction, China’s furniture exports have maintained a growing trend in recent years. According to the statistics of the General Administration of Customs of China, the cumulative export value of furniture and its parts in 2021 reached 73.976 billion US dollars, an increase of 26.4%.
3. Online trade have become a new engine for the development of the global furniture market
Thanks to the development of the logistics industry and the decline in the cost of furniture transportation, online ordering of furniture has brought more choices and greater convenience to consumers. According to Statista data, from 2017 to 2020, the proportion of online sales in the global furniture market has increased year by year, and online channels have become a new engine for the development of the global furniture market, while offline channels also firmly grasp the sales channels of the global furniture market. In the future, with the continuous expansion of e-commerce channels and the development of logistics, electronic payment and other supporting industries, the proportion of online furniture market is expected to continue to expand.
4-The global household goods market is growing steadily
Euromonitor data shows that from 2017 to 2020, the global household goods market size is growing at a compound annual growth rate of 1.12%, with a market size of $677.278 billion in 2020. Although the global economy is stagnant due to the COVID-19 epidemic, the size of the household goods market in 2020 is slightly smaller than that in 2019, but with the future global economic recovery, the improvement of residents’ income level and the improvement of consumption frequency, the consumer demand for global household goods is expected to maintain steady growth, reaching 851.984 billion US dollars in 2025.
5-Europe and the United States and other countries or regions are the main demand market for household goods
The global household goods market is mainly concentrated in Europe, the United States, China and Japan and other countries or regions. According to Euromonitor data, Europe is the largest region in the global household goods market, with a market size of $2127.765 billion in 2020. The United States ranks second, with a 2020 home goods market size of $180.854 billion.
6-The proportion of e-commerce channels is increasing year by year
At present, the global household goods market is still dominated by offline channels, which is related to the characteristics of household products. With the popularity of the Internet, the development of the logistics industry and the change of consumer habits, the proportion of e-commerce channels continues to grow. According to Euromonitor, the share of e-commerce sales in the household goods market rose from 1.7% in 2005 to 17.7% in 2020.
Understand the trend
1-Global furniture demand will continue to grow, and industry concentration will increase
In terms of the global market, because the demand for furniture is affected by factors such as social economy, housing, consumption power and consumption concept, the market demand in developed countries and emerging market countries is different. In developed countries and regions such as Europe, the United States, Japan and South Korea, the degree of urbanization is high, the consumption power of residents is strong, consumers usually have higher requirements for comfortable living conditions, old house decoration and rental furniture replacement demand is large, and there is a stable demand for furniture. In emerging market countries, the urbanization process continues to advance, and the increase of urban population size leads to the expansion of housing demand and the increase of furniture demand. At the same time, the rapid economic development of emerging market countries has increased residents’ income, increased the demand for improved living conditions, and the demand for furniture will continue to grow.
2-The penetration rate of e-commerce in overseas markets continues to increase, and online channels will become a new growth point
With the development of logistics and transportation and the progress of display technology, the overall supporting industry chain of furniture and household goods, as well as warehousing, logistics and after-sales service, has been continuously improved. In addition, the online shopping platform is convenient to display products through pictures, videos and other media, and can quickly complete transactions through convenient online payment, which greatly improves the transaction efficiency. The proportion of sales through e-commerce channels has increased year by year. Especially since 2020, due to the impact of the novel coronavirus epidemic, overseas consumption scenes have gradually shifted from offline to online, accelerating the rapid rise in the penetration rate of e-commerce in overseas markets. The continuous improvement of the penetration rate of e-commerce in overseas markets has prompted the demand for global online furniture and household goods market to continue to grow. In the long run, e-commerce channels will become a new growth point for the global furniture and household goods market.
3-Consumer demand has changed, and brand and experience requirements have increased
With the continuous development of the global economy and the continuous improvement of residents’ income and living standards, consumers are no longer satisfied with the basic functions of furniture and household products, and pay more attention to the brand and use experience of products. In order to meet consumer needs, furniture and home furnishing manufacturers continue to increase their investment in product design and brand building, constantly improve the beauty and use experience of products, and improve the brand’s recognition in the minds of consumers. At the same time, the young generation of consumer groups has gradually become the mainstream, and the new consumer force they represent is pouring into the furniture and home furnishing market. With the iteration of consumers, the change of consumption pain points, the diversification of access to information channels, and the fragmentation of time, the consumption pattern has gradually formed a new law, which will further promote the development of furniture and home branding. In the future, furniture and home furnishing enterprises need to pay more attention to brand building and product design, adapt to meet the new needs of consumers for furniture and home products, and the furniture and home furnishing industry will develop in the direction of new retail, new marketing and new services.
4-Health, energy saving and environmental protection are the themes of increased concern for future consumers
With the improvement of people’s quality of life and the progress of consumption concepts, consumers are increasingly yearning for green and healthy life, owners of furniture, home layout, in order to meet the use of function, beauty, personalized needs, on the basis of energy saving and environmental protection elements are also more important, the selection of furniture, household goods also have higher requirements.
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