Although 2022 and 2023 saw several high-profile furniture manufacturers and retailers undergoing closures and/or acquisitions, and the industry appears to be “sluggish,” the 2024 outlook is not all bleak.
New residential furniture orders rose 29% in August 2023 compared to the year prior, while shipments were down 17%, noted Ken Smith, managing partner at Smith Leonard, in the October issue of Furniture Insights. Year to date, new orders were about even compared to the same period in 2022, with roughly 40% of participants reporting gains. "On the other hand, we thought the October High Point market was well attended and once again, the 'mood' of market was very good. Great new product was shown. Even though many echoed the thoughts that attendees loved our product and were very happy with our showing, the only problem was the 'they must have forgotten their pens.’ But that great product will sell eventually as consumers come back to the stores or their designers suggest they just have to have some of the new product. People came and some will buy. We hope whatever this 'slow down' ends soon, but think one needs to be prepared to ride it out a bit longer than most probably think."
While the popularity of online shopping continue to grow, several research groups note large furniture buys continue to primarily be made in-store. For example, in a study by Provoke Insights, 62% said they purchase furniture in-person, 25% online, 13% via mobile phone, and just 1% by phone call.
Click on the infographic to enlarge. Find more market data in the December 2023 FDMC Wood Industry Almanac.
Quick Stats (Includes items not shown in print.)
• Following on the heels of the mandatory safety standard for clothing storage furniture, the CPSC is calling for a reclining furniture safety standard. AHFA is involved in the process.
• The global kids' furniture market size is projected to reach $183.2 billion USD by 2031, growing at a CAGR of 5.7% (2022-2031), according to Transparency Market Service. The market is estimated at $117.7 billion for 2023.
• The global RTA market reached $13.9 billion in 2022 and is projected to grow to $19.1 billion by 2028, IMARC says.
• The global home office furniture market is expected to grow from $29.001 billion USD in 2022 to $43.165 billion in 2027 at a CAGR of 8.3%. According to an update from The Business Research Co., the market is expected to grow at a CAGR of 8.4% from 2027 to 2032 and reach $64.751 billion.
• Furniture shoppers are willing to pay extra for sustainable items, according to the Provoke Insights Furniture Trends Fall 2023/Winter 2024 survey. Of the 81% that said they would pay more, 6% said they would pay 25% or more money, 19% said 10-24% more, 38% would pay 5-9% more, and 37% are OK with spending 1-4% more.
• More than one-third (40%) of Canada’s furniture manufacturers are in Quebec, according to the Association of Furniture Manufacturers of Quebec.
Market Data Sources: Smith Leonard, U.S. Bureau of Labor Statistics, U.S. Census Bureau, Statistics Canada, Provoke Insights, Statista, Transparency Market Research, IMARC, American Home Furnishings Alliance (AHFA), Association of Furniture Manufacturers of Quebec (AFMQ), AFAMJAL, The Business Research Co. Category: Residential furniture includes wood & upholstered furniture, casegoods, RTA, bedroom & youth, entertainment units.
More data on North American woodworking and the specific wood product market segments can be found in the December 2023 FDMC Wood Industry Almanac. Also, find market data year-round at WoodworkingNetwork.com/news/almanac-market-data.
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