Ready-To-Assemble (RTA) Furniture Market Analysis US - Size and Forecast 2024-2028

US Ready-To-Assemble (RTA) Furniture Market Size 2024-2028 

The US ready-to-assemble (RTA) furniture market size is forecast to increase by USD 2 billion at a CAGR of 2.1% between 2023 and 2028.

• The ready-to-assemble (RTA) furniture market is experiencing significant growth, driven by the rapid urbanization trend, which has led to an increase in demand for affordable housing solutions. Additionally, there is a growing focus on sustainable operations and offerings, as consumers become more environmentally conscious. However, the market faces challenges, including the volatility in raw material prices, which can impact the profitability of manufacturers. To mitigate this risk, RTA furniture companies are exploring alternative sourcing strategies and implementing price hedging mechanisms. The market is expected to continue its growth trajectory, driven by these trends and the increasing demand for customizable and cost-effective furniture solutions.

What will be the size of the market during the forecast period?

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• The ready-to-assemble (RTA) furniture market is experiencing significant growth due to several factors. Convenience is a major driver as urbanization increases and people seek space-saving modular units for their homes. E-commerce growth also plays a role, as online retailers offer RTA furniture at competitive prices and ease of home delivery. However, there are challenges, including assembly difficulties, perceived inferior quality, and durability concerns. Environmental concerns are another factor, as consumers become more aware of the environmental impact of manufacturing and transportation.
• Furthermore, frequent relocation and economic slowdowns can also impact the market. The real estate sector, particularly in urban areas, is a significant market, as home office furniture and other space-saving solutions become increasingly popular. Logistical challenges, such as supply chain and raw material costs, can impact the market, as can the prevalence of counterfeit products and consumer skepticism. Materials used in RTA furniture, such as wood, metal, and plastic, can also impact market trends. Overall, the market is expected to continue growing, driven by convenience, urbanization, and e-commerce.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • Home
  • Office
• Distribution Channel
  • Offline
  • Online
• Geography
  • US

By Product Insights

• The home segment is estimated to witness significant growth during the forecast period.

The Ready-To-Assemble (RTA) furniture market is experiencing significant growth due to the convenience it offers in the context of growing urbanization. With frequent relocation becoming a norm, RTA furniture's space-saving modular units have become increasingly popular. However, consumer skepticism towards perceived inferior quality and durability concerns persist. E-commerce growth has been a major driver for the RTA furniture market, with online retailers offering a wide range of self-assembly furniture options. Material selection plays a crucial role in addressing durability concerns, with suppliers focusing on high-quality raw materials. The economic slowdowns have led to a shift in discretionary spending towards essential household items, including home office furniture.

Furthermore, urbanization and lifestyle changes have led to an increase in demand for customization, which is limited in RTA furniture. Supply chain and logistics challenges, including raw material costs and counterfeit products, pose significant risks to market growth. Advertising and social media have become essential tools for reaching consumers and offering product differentiation. Instruction manuals and customer interaction are critical for ensuring a positive customer experience and competitive advantage in the organized retail sector. The middle-class population's increasing household expenditure on furniture products, coupled with the availability of branded furniture in specialty formats, is expected to drive market growth in the coming years.

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The home segment was valued at  USD 11.53 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in adoption of US Ready-To-Assemble (RTA) Furniture Market?

Rapid growth in urbanization is the key driver of the market.

• The ready-to-assemble (RTA) furniture market is experiencing significant growth due to the increasing trend of urbanization, particularly in developing countries. With more than 4.3 billion people living in urban areas worldwide in 2023, the construction of residential and commercial complexes is on the rise. In response to this demand, furniture manufacturers are producing functional and minimal packaging furniture, such as knock-down tables, desks, sofas, chairs, cabinets, wardrobes, beds, and more, made of wood, glass, and steel. These flat-packed, unassembled pieces cater to the needs of those living in small spaces, offering personalized fittings and aesthetic appeal.
• Moreover, millennials, in particular, are driving the demand for flexible furniture that is easy-to-move and can be customized to suit their evolving lifestyles. Product innovations, such as click furniture technology, ensure stability and ease of assembly. The market for RTA furniture is expanding through promotional activities and the use of online retail channels, catering to various expenditure capacities. Premium-quality, luxurious furnishings are also available in product categories ranging from functional minimalist designs to specialty and flagship stores, as well as home centers and online stores.

What are the market trends shaping the US Ready-To-Assemble (RTA) Furniture Market?

Focus on sustainable operations and offerings is the upcoming trend in the market.

• The Ready-to-Assemble (RTA) furniture market is witnessing significant growth due to the increasing preference for functional, minimal packaging, and easy-to-move furniture solutions. RTA furniture, also known as knock-down furniture, includes tables, desks, sofas, chairs, cabinets, wardrobes, beds, and more, which are delivered in flat-packed or unassembled form. This trend is particularly popular in residential and commercial complexes with limited spaces. Manufacturers are focusing on product innovations, such as click furniture technology, to enhance the stability and ease of assembly. Material categories, including wood, glass, and steel, are being used to cater to various aesthetic appeal and expenditure capacities.
• Similarly, specialty stores, flagship stores, home centers, and online stores are key channels for the sale. Sustainability is a key consideration in the industry, with companies adopting eco-friendly practices to minimize waste generation and reduce environmental impact. For instance, Dorel Industries and Sauder Woodworking are implementing strategies to optimize production processes and reduce energy and carbon footprints through renewable biomass and co-generation plants. Promotional activities and online retail channels are also driving the growth of the RTA furniture market, particularly among millennials who prefer premium-quality products and personalized fittings. Overall, the RTA furniture market is expected to continue its growth trajectory, driven by these trends and the flexibility it offers in terms of space utilization and customization.

What challenges does US Ready-To-Assemble (RTA) Furniture Market face during the growth?

Volatility in raw material prices is a key challenge affecting the market growth.

• Ready-to-assemble (RTA) furniture, also known as knock-down furniture, has gained significant popularity due to its functional and minimal packaging design, making it an ideal choice for residential and commercial complexes with limited spaces. RTA furniture includes various product categories such as tables, desks, sofas, chairs, cabinets, wardrobes, beds, and more, available in wood, glass, and steel. The flexibility of RTA furniture makes it easy-to-move and perfect for millennials with expenditure capacities looking for personalized fittings and aesthetic appeal. Manufacturers face challenges in managing the price volatility of key raw materials, particularly wood (softwood and hardwood), used for production.
• However, softwood and hardwood lumber, which is a commodity product, is subject to global and regional economic performance and price elasticity. The production of RTA furniture types predominantly depends on the prices of these materials. In the US market, softwood and hardwood lumber price volatility is a significant challenge for the manufacturers. Product innovations, such as click furniture technology, stability, and promotional activities, are crucial for manufacturers to maintain competitiveness in the market. Online retail channels, specialty stores, flagship stores, and home centers are key distribution channels. Premium-quality products catering to luxurious furnishing needs also form an essential part of the market.

Exclusive US Ready-To-Assemble (RTA) Furniture Market Customer Landscape

The market forecasting 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 market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Ashley Global Retail LLC
• AWA Cabinets and Countertops
• BESTAR Inc.
• Dorel Industries Inc.
• Euro Style Inc.
• Flexa4Dreams AS
• Home Reserve LLC
• Inter IKEA Holding B.V.
• Nitori Holdings Co. Ltd.
• Nova LifeStyle Inc.
• Sauder Woodworking Co.
• Simplicity Sofas Inc.
• South Shore Industries Ltd.
• Tvilum AS
• Walmart Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The ready-to-assemble (RTA) furniture market is experiencing significant growth due to several factors. Convenience is a major driver, as urbanization leads to smaller living spaces, making space-saving modular units and self-assembly furniture an attractive option. The growing e-commerce market also plays a role, as consumers can easily purchase RTA furniture online and have it delivered to their doorstep. However, there are challenges to consider, such as perceived inferior quality and durability concerns. Limited customization and consumer skepticism are also factors that can impact sales.

Moreover, the supply chain and logistics of RTA furniture production and distribution can be complex, with raw material costs and counterfeit products posing risks. Advertising and social media are essential for reaching customers and offering customization and customer interaction for a competitive advantage. Household expenditure, lifestyle changes, and the increasing middle-class population are also fueling demand. Product differentiation through design and styling, instruction manuals, and furniture variety are key strategies for success in this market.

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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 between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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