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The home furnishings market size in Europe is estimated to grow at a CAGR of 6.46% between 2022 and 2027. The home furnishings market in Europe market size is forecast to increase by USD 171.19 billion. The growth of the market depends on several factors, including the growth of the real estate and construction industry, the rising demand for luxury furniture, and the growth of organized retail.
This home furnishings market report in Europe extensively covers market segmentation by distribution channel (offline and online) and product (home furniture, home textiles, and floor coverings). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of the real estate and construction industry is notably driving the market growth, although cost challenges faced by manufacturers and vendors may impede the Europe Home Furnishings Market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of the real estate and construction industry is notably driving the growth of the Europe Home Furnishings Market. The growth of the real estate industry is increasing the number of office spaces, commercial establishments, and residences in Europe, increasing the demand for furniture. The increase in single and two-person households contributes to an increase in housing construction. The longevity of baby boomers, increasing urbanization, and the lifestyle choices of millennials all contribute to the increasing demand for custom furniture.
For example, according to the World Bank Group, the urban population as a percentage of the total European Union has increased from 73.9% in 2015 to 74.9% in 2020. This has fueled the growth of the European home textile market. Demand for portable and compact furniture is particularly high in this region. Due to the lack of space in urban areas, the demand for multifunctional furniture is also increasing. The expanding real estate business and accompanying revival of the construction industry will have a significant impact on the growth of the European furniture market.
The increase in the adoption of eco-friendly furniture is a key trend influencing the growth of the Europe Home Furnishings Market. Growing concerns about climate change and deforestation have led to the adoption of eco-friendly furniture. Several suppliers are involved in the production of eco-friendly furniture. Although eco-friendly furniture comes with a premium price, the demand for such furniture is increasing. The above factors have prompted many suppliers operating in the European home furniture market to develop eco-friendly furniture with eco-friendly technology. Biodegradable, sustainable, and renewable raw materials such as wood are used in the production of eco-friendly furniture. North American hardwoods are one of the best eco-friendly raw materials used in the production of eco-friendly organic furniture. Additionally, bamboo has emerged as an eco-friendly alternative to traditional wood used to make furniture.
Alta Decoracion ArtesMoble SL and Vermont Woods Studios LLC are Europe's most popular manufacturers of eco-friendly organic furniture. The growth of the eco-friendly and organic furniture category is fueled by awards and recognition. Hence, due to the factors mentioned above, the rapid emergence of eco-friendly organic furniture will be the major trend positively impacting the European home furnishings market during the forecast period.
The cost challenges faced by manufacturers and vendors are challenging the growth of the Europe Home Furnishings Market. High transportation costs increase manufacturing costs and limit the operations of furniture manufacturers and retailers. The complexity involved in transporting raw materials (such as wood) and assembling furniture is reflected in the cost of the final product. Transportation costs typically include all costs associated with shipping raw materials to manufacturing sites, shipping goods in transit to manufacturing sites, shipping finished goods to warehouses, and shipping finished goods to end users. In principle, transportation expenses will be borne by the business operator. Sellers also have to pay taxes, duties, and fuel costs. A large part of the supplier's transportation costs is fuel costs, which are often variable. Increased transportation costs directly increase the cost of the final product.
Manufacturers in the Europe home furnishings market are concerned about the safety of their final products. Rising raw material and labor costs have increased the overall manufacturing cost of furniture, creating another operational challenge for the European home furnishings market. Increased transportation complexity, increased transportation costs, and other operational challenges directly impact the cost of the final product. This negatively impacts product sales and vendor revenues, impeding the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Home Furnishings Market in Europe Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Andrena Furniture Ltd: The company offers different home furnishing products such as cabinets, bookcases, tables, chairs, wardrobes, oval extending tables, and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. The offline segment consists of specialty stores, home decor chains, and convenience stores. Specialty stores stock popular brands of home furnishings and offer a diverse brand and product portfolio. They limit product offerings to their own product category and sell similar types of products in all their stores. Whereas the home decor chains are independent stores offering a wide range of merchandise and seasonal discounts. They also offer a collection and delivery service.
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The offline segment was valued at USD 280.66 billion in 2017 and continued to grow until 2021. Convenience stores in the offline segment are distribution channels for a variety of daily necessities. Consumers like it because it stays open late and has great site coverage, and has a short billing route. Kroger is one of the most popular convenience stores in the world. The popularity of these retailers helps manufacturers of home furnishing products expand their customer base. Regional retailers operating in these retail formats continue to benefit from extensive geographically distributed store networks. Consumers find it beneficial to shop at such retailers due to attractive discount offers and plans.
The home furnishings market report in Europe forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio classifies the European home furnishings market as part of the global home furnishings market within the global consumer goods industry. The global home furnishings parent market includes products and companies involved in the manufacturing/marketing of furniture, home textiles, flooring, and decorative items. Technavio calculates the global durable home appliances market size based on the combined revenue generated by manufacturers/marketers of consumer electronics, home furnishings, decorations, home appliances, and other home products.
Home Furnishings Market Scope in Europe |
|
Report Coverage |
Details |
Page number |
134 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.46% |
Market growth 2023-2027 |
USD 171.19 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.75 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Andrena Funriture Ltd., B and B Italia SPA, DEDON GmbH, Delcor Ltd., DFS Furniture PLC, Dunelm Group Plc, Ercol Furniture Ltd., Forbo Management SA, Hafren Furnishers Ltd., Inter IKEA Holding BV, LLG AS, LuxuryfurnitureMR, Nolte GmbH and Co. KGaA, Poltrona Frau SPA, ROCHE BOBOIS SA, SOFACOMPANY, Steve Bristow Stone Masonry Ltd., The Cotswold Co. UK Ltd., Wayfair Inc., and Wicklewood Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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