An increase in the number of one- and two-person households and reduced floor space call for smaller yet elegant and multifunctional pieces.
This table can be folded and closed into a cabinet when not in use. Source: Home Office and Inspirations
A demand for tech-driven and all-around furniture and floor coverings will lead to an increase in sales forecasted to reach $695 billion with a 5.3 percent CAGR by 2019, according to Research and Markets. The growth is expected in spite of the recent economic recession and will be fuelled by emerging key trends influenced mostly by consumer spending behavior and the latest innovations.
With the number of one- and two-person household increasing, the demand for compact, portable and multifunctional furniture is also rising. Smart, foldable and utilitarian pieces are preferred for homes with reduced floor spaces.
The advent of telecommuting has also driven the need for home office furniture such as computers, desks, ergonomic chairs and filing cabinets as more houses reserve and convert rooms into working spaces.
A growing economy is affecting the demand for luxury furniture positively. This sector is predicted to achieve a CAGR of more than four percent from 2015 to 2019.
Europe is currently the largest market for luxury furniture, followed by China and India. On a side note, China is expected to outdo US in 2019 in terms of disposable income, urban population and affordable housing, with all factors contributing to a sales increase in furniture and furnishings.
With luxury furniture also come green options to help address environmental concerns such as deforestation, though these are quite expensive. Despite the high price, these pieces remain popular among consumers.
In terms of distribution channels, the US home furnishings store industry records 15,000 shops contributing to $27 billion in yearly revenue. However, online channels, posting a CAGR of 16.6 percent, are quickly becoming a formidable competition for brick-and-mortar shops. To further gain more customers, online shops are keen on offering additional services, including free delivery and installation, and same-day pick-up.