Decor January-February 2019

furniture among the consumers thereby enabling the
manufacturers to develop products using sustainable
eco-friendly material. Moreover, wooden furniture
market participants are increasingly focusing on providing
eco-friendly and adaptable products for gaining
a competitive edge in the market.
Growing real estate investments across the globe
has resulted to increase in the number of commercial
complexes, residential buildings and office spaces
thereby fueling the product demand. Also, rising
disposable income in conjunction with improving living
standards coupled with increase in the number of
nuclear families are strongly supporting the demand
in the industry. Additionally, increasing requirement
for modern office interiors offering productive and
comfortable working environment will proliferate
wooden furniture market expansion.
Growing preference for compact & portable furniture
for optimum space utilization are strongly supporting
the demand in the industry. Industry players are
constantly focusing on enhancing their product portfolio
and upgrading their solutions to gain competitive
advantage and enhance their market share.
Residential segment accounted for more than 65% of
the wooden furniture market share in 2018. Growing
consumer inclination towards purchasing luxury furniture
and home decor products with unique designs
and excellent aesthetics have enhanced the product
demand in residential buildings. In addition, favorable
government housing schemes and policies coupled
with rise in the number of single households that are
looking for basic living, bedroom and kitchen configurations
is anticipated to further steer the demand in
the industry.
Commercial segment will witness CAGR at over 6%
up to 2025. Modern work life concepts such as study
rooms of learning oriented kids, teenagers and students
have urged the need for cutting edge, modular
furnishings to generate a better learning atmosphere.
For instance, in March 2017, Microsoft announced to
collaborate with Steelcase for developing technology-enabled
workplace solutions by upgrading Microsoft
architecture and furniture that would help in
increasing creativity among employees. Additionally,
rising investments toward construction and remodeling
of new hotels, educational institutions, hospitals
and offices will positively influence market growth.
Asia Pacific leads the wooden furniture market accounting
for over 45% of the industry share in 2018.
Factors such as rising disposable income, rapid
urbanization coupled with improvement in the living
standards are among the key factors stimulating the
growth of the product across the region. Rapid growth
in the tourism and hospitality industry coupled with
high preference for traditional wooden furniture will
further augment the regional growth.
North America wooden furniture market will witness
CAGR of over 5.5% from 2019 to 2025. Increasing demand
for elegant and modular furniture in the region
owing to higher growth in the real estate sector have
escalated the industry share. Presence of key players
offering luxurious interior products coupled with high
popularity of online distribution channels that offer
convenience and timesaving will boost the regional
growth. For instance, in April 2017, Ethan Allen to
collaborate with Amazon for acquiring larger consumer
base and expansion of its geographical reach by
utilizing Amazon’s online sales platform.
Herman Miller, Inc, Bush Industries Inc., Dorel
Industries Inc., Natuzzi S.p.A, Kinnarps AB, Sauder
Woodworking Co, Kimball International, Meike International
Household Products Co. Ltd. and Samson
Holding Ltd., are among major wooden furniture manufacturers.
Global wooden furniture market share is
highly fragmented with the presence of large regional
players and multinational corporations. The manufacturers
are involved in mergers and acquisitions, product
innovations, strategic investments, new product
launches, utilization of online distribution platform
and production capacity expansions for gaining a
competitive share. For instance, in 2018, Dorel home
acquired Alphason, a UK-based furniture company for
expansion of its product portfolio and business across
European market.
January - February 2020 • DECOR 25