Furniture Rental Market Trends

Growth Drivers

• Rising urban activities: The rising urban population and job relocations particularly among millennials and Gen Z are fostering high demand for temporary housing solutions including rental furniture. The United Nations estimates that the global urban population is set to increase to 68% by 2050. This demographic is expected to invest more in renting high-quality furniture than purchasing due to their short-term needs. Individuals who shift to urban areas in search of jobs or education are often with limited budgets. Investing in furniture appears to be a significant financial challenge for them. Thus, urban population growth is anticipated to offer lucrative opportunities to furniture rental market players in the coming years.
• Teleworking trend: The remote work trend is positively influencing the demand for rental furniture, especially among individuals setting up home offices. Many prefer renting ergonomic furniture for home office setups rather than committing to long-term purchases due to their cost-effectiveness. For instance, in December 2023, the U.S. Bureau of Labor Statistics revealed that around 1 in 3 employees in professional, management, and other related occupations are teleworking. This high shift in remote working directly drives the demand for home-office furniture such as tables, cabinets, and chairs. Instead of investing heavy amounts in fixed assets, individuals opt for rental furniture services. The rental furniture option is profitable for users in multiple ways such as in reducing logistics costs, easy installation and return options, and availability of the latest products. 

Challenges

• Operational complexity: In the furniture rental sector the efficient management of inventory, delivery, installation, and maintenance of rental products is the most challenging aspect. New companies entering the furniture rental market should ensure efficient supply chain management for a smooth customer experience. Also, since rental furniture is used multiple times by various customers, the maintenance of product quality is a must. Damaged or worn furniture hampers the brand’s reputation, leading to lower demand.
• High competition: The presence of established companies and the continuous emergence of start-ups are increasing the furniture rental market competitiveness. Bad service and poor marketing can hinder the revenue growth of the companies. Also, as the competition increases, some industry giants offer furniture rental services at competitive prices, which can hamper their profit shares to some extent.