Luxury Furniture Market by Application, Distribution Channel, and Geography - Forecast and Analysis 2023-2027

Luxury Furniture Market Forecast 2023-2027

The luxury furniture market size is estimated to increase by USD 9.21 billion and grow at a CAGR of 5.21% between 2022 and 2027. Market expansion is driven by various factors, such as the increase in new luxury furniture showroom launches, the expanding influence of diverse retailing channels, and the growing preference for multifunctional luxury furniture. These elements shape consumer trends and fuel industry growth. However, challenges persist, including frequent product recalls, volatile raw material prices, and stringent regulations governing luxury furniture. Overcoming these obstacles is essential to sustain market momentum and ensure consumer trust. Addressing product quality issues, stabilizing raw material costs, and navigating regulatory compliance are crucial steps in fostering market stability and growth. Despite these challenges, the market remains resilient, driven by continuous innovation and adaptation to changing consumer demands, thus maintaining its position as a dynamic and evolving sector in the retail industry.

 What will the Size of the Luxury Furniture Market be During the Forecast Period?

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Segmentation

This report extensively covers market segmentation by application (residential and commercial), distribution channel (offline and online),  and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Application

The market share growth by the residential segment will be significant during the forecast period. The market encompasses various product categories, including chairs and sofas, as well as accessories for both residential and commercial applications. Key players in this industry include Herman Miller, IKEA, Muebles, and HNI. The residential segment is experiencing substantial growth due to the increasing demand for multifunctional, multipurpose furniture, such as foldable beds and extendable sofa sets. This trend is driven by urbanization, urban culture, and the desire for eco-friendly, luxury furnishings. Home centers, flagship stores, and specialty stores serve as major distribution channels. Material selection, innovation, and transportation are crucial factors in the production and delivery of these items.

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The residential segment showed a gradual increase in market share from USD 11.30 billion in 2017 and continued to grow by 2021. Exporters cater to both developing and developed countries, subject to import and export restrictions. Furniture designers prioritize craftsmanship, design, and interior designer collaborations. Sustainability, carbon footprints, and environmentally beneficial alternatives are becoming increasingly important considerations. The globalization of the market has led to the emergence of Italian-made and German-made furniture, as well as a focus on branding and positioning. Toxicity and eco-friendly alternatives are key concerns in the luxury goods sector. The industry is subject to global trade wars and style trends.

Key Region

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Europe is projected to contribute 35% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The European market, characterized by high demand potential, encompasses key countries, including France, Italy, Germany, the UK, Belgium, the Netherlands, Spain, and Russia. Major vendors such as Club House Italia Spa, Minotti Spa., Natuzzi Spa., Opera Contemporary, Herman Miller Inc, and MUEBLES PICO SA, renowned in the global market, offer a range of Chairs, Sofas, and Accessories for Residential and Commercial use. Home Centers and Flagship Stores, as well as Specialty Stores, showcase these premium offerings. Material selection from Domestic and Developed countries is crucial, with considerations for Import & export restrictions, Transportation, and Delivery. Innovation, Urbanization, and Urban culture drive market trends, with a focus on Indoor and Outdoor spaces. Raw materials, Interior designers, Craftsmanship, and Design are integral to the sector. Globalization, Carbon footprints, and Environmentally beneficial alternatives are increasingly important, as are Furniture designers, Toxicity, Luxury goods Branding, and Positioning. Eco-friendly luxury furnishings are gaining popularity amidst the Global trade war. Italian-made and German-made furniture are highly sought-after for their Style.

Market Dynamics and Customer Landscape

In the market, workers and craftsmen in developed countries, such as Italy, meticulously create high-quality pieces using materials like metal, wood, glass, plastic, and leather. These goods find extensive use in offices, hotels, homes, restaurants, and other establishments for both domestic and commercial purposes. Exporters play a significant role in transporting these luxury items to developing countries, where demand for innovation and urbanization continues to grow. However, import and export restrictions and global trade wars can impact the market dynamics. Developing countries may face challenges in accessing these luxury goods due to tariffs and quotas. Meanwhile, developed countries may face competition from low-cost producers in developing countries. Furniture designers continue to push the boundaries of branding and positioning, creating unique pieces that cater to the evolving tastes of consumers. Luxury goods, including Italian-made furniture, remain in high demand due to their perceived value and exclusivity. Ultimately, the market is a dynamic and complex ecosystem that requires constant innovation and adaptation to meet the changing needs of consumers and global market conditions. 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.

Key Market Driver 

The major driver that will expand the market size is the emergence of online and offline stores offering customizable products. The market is experiencing significant growth due to the continuous introduction of high-quality products and showrooms worldwide. Major and regional players are capitalizing on the expanding opportunities in this sector, catering to the demands of interior designers and end-users seeking to enhance their living spaces with comfortable sofas, aesthetic appeal, and urbane lifestyles. New showrooms showcase lighting, tables, cabinets, and office furniture, including workstations, conference rooms, cafeterias, and lounges, to attract customers in both developed and developing nations. Online platforms also play a crucial role in reaching a broader audience, offering end-users a diverse range of options to fit their unique lifestyles. Furthermore, consumers have developed a liking for multifunctional products as multifunctional products provide them the liberty to quickly re-configure the entire outdoor area. 

Significant Market Trends

Eco-friendly and organic luxury furniture will fuel the global market growth. The market has witnessed a significant shift towards eco-friendly and sustainable products in response to growing environmental concerns. Quality eco-friendly furniture made from biodegradable, sustainable, and renewable raw materials, such as North American Hardwood and bamboo, is increasingly preferred by interior designers for living spaces. Comfortable sofas, tables, cabinets, and other furniture pieces with an aesthetic appeal are essential for urbane lives. Lighting and workstations in commercial workspaces, conference rooms, cafeterias, lounges, and office furniture also benefit from this trend. End-users, including individuals and developing nations, are embracing eco-friendly lifestyles, leading to increased demand for these products online. Therefore, millennials have a high potential in the overall market. 

Major Market Challenge

The instability in prices and increasing costs of raw materials can bring some setbacks in the global market. The global market faces a significant challenge due to the rising number of product recalls, particularly in sub-categories such as bar stools, recliner chairs, sofas, beds, and dining tables. These recalls negatively impact market growth by damaging reputations and imposing operational and financial constraints on market participants. In recent years, there have been numerous instances of such recalls in the sector. Quality is a top priority for interior designers and end-users seeking to enhance their living spaces with comfortable sofas, aesthetically pleasing tables, cabinets, and lighting fixtures. Urbane lifestyles demand furniture that not only provides comfort but also boasts an aesthetic appeal. Developing nations and commercial workspaces, including workstations, conference rooms, cafeterias, lounges, and office furniture, are increasingly adopting luxury furniture to elevate their spaces. Online platforms have made it easier for end-users to access and purchase these products, broadening the market reach. However, ensuring product quality remains a critical concern to maintain consumer trust and confidence in the industry. These unavoidable factors will hinder its market growth during the forecast period.

Key Market Customer Landscape

The market 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 Market Customer Landscape

Who are the Major Luxury Furniture Market Companies?                                   

Companies 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.

Angelo Cappellini - The company offers luxury furniture for use in bedrooms, bathrooms, and hall rooms, including sofas, chairs, beds, and many more items. Also, the company is primarily engaged in manufacturing furniture and fixtures, including hospital beds and furniture that is specially designed for use in restaurants, bars, cafeterias, bowling centers, and on ships.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• ANGELO CAPPELLINI and C. Srl
• Club House Italia S.p.A
• Eichholtz B.V.
• Eric Kuster Metropolitan Luxury International Holding Ltd.
• Giorgio Armani S.p.A.
• Giorgio Collection
• Herman Miller Inc.
• LONGHI S.p.a.
• Minotti S.p.A.
• MUEBLES PICO SA
• Opera Contemporary
• Reflex S.p.a.
• ROCHE BOBOIS SA
• Rugiano Srl
• Silik s.r.l.

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.

Segment Overview

The market report 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. The market has been segmented by type, product, distribution channel, and region.

• Application Outlook
  • Residential
  • Commercial 
• Distribution Channel Outlook
  • Offline
  • Online
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Colombia
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In the high-end market, Craftsmanship, Quality, and Luxury are the key elements that define the Furniture industry. The Workers, using their skills and expertise, create Masterpieces that are a blend of Functionality and Aesthetics. These Metals and Woods are transformed into elegant Furniture pieces, such as Chairs, Tables, and Cabinets. The Craftsmen's dedication to their craft results in Homes filled with hot spots that exude a sense of Elegance and Sophistication. The Plastic and Fabric materials used are Durable and Comfortable, ensuring a long-lasting investment. The Market for these high-end Furniture pieces is vast and diverse, with a global reach. The Demand for these unique and exclusive pieces is driven by the desire for a refined and luxurious lifestyle. The Market is constantly evolving, with new Trends and Styles emerging, such as Minimalist and Modern designs. The Market is also influenced by Technological advancements, with Smart Furniture becoming increasingly popular. The use of advanced materials and innovative designs has led to the creation of Furniture that is not only beautiful but also functional and efficient. In conclusion, the Market is a thriving industry that caters to the desire for high-quality, unique, and elegant Furniture pieces. The Market is driven by a global demand for refined and sophisticated living spaces and is constantly evolving to meet the changing needs and preferences of consumers.

Luxury Furniture Market Scope
Report Coverage	Details
Page number	154
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.21%
Market growth 2023-2027	USD 9.21 billion
Market structure	Fragmented
YoY growth (%)	4.66
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 35%
Key countries	US, China, Germany, UK, and Italy
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	ANGELO CAPPELLINI and C. Srl, Club House Italia S.p.A, Eichholtz B.V., Eric Kuster Metropolitan Luxury International Holding Ltd., Giorgio Armani S.p.A., Giorgio Collection, Herman Miller Inc., LONGHI S.p.a., Minotti S.p.A., MUEBLES PICO SA, Opera Contemporary, Reflex S.p.a., ROCHE BOBOIS SA, Rugiano Srl, Silik s.r.l., Vaughan Bassett, Williams Sonoma Inc., and Natuzzi SpA
Market dynamics	Parent market analysis, Market forecasting, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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