Furniture Market Trends

Growth Drivers

• Rising demand for modern sustainable furniture - Due to growing awareness about sustainability, consumer choice is rapidly changing. Also, the sustainable processes opted for the manufacturing of advanced types of furniture adhere to the environmental norms and support the net zero carbon target.
• Expansion of the construction sector - The day-by-day increasing urban population demands new construction. This demand simultaneously connects with the surge of premium furniture that may offer space and a luxurious appearance. Moreover, the construction sector of India is poised to reach USD 1400 Billion by 2025 and this growth is driven by the development of smart cities.
• Increasing disposable income - People are becoming financially more stable nowadays with the rise in disposable income and can afford a better lifestyle. This change eventually adds growth to the furniture market since advanced multifunctional furniture that caters to distinct needs is highly demanded. As per the U.S. Energy Information Administration’s data, the disposable income of the United States is poised to reach nearly USD 0.07 million by 2050.

Challenges

• Disruptions in the supply chain - No effective coordination can affect the whole supply chain management. The production process involves various vendors and suppliers and taking a ground detail from them about the raw material, delivery, etc. can be a hassle.
• Shortage of labor - Many furniture manufacturing companies face challenges with the delivery and production tasks in the labor shortage situation. Another factor adding to this situation is the aging skilled workforce.