Located in Lomas de Chapultepec, the most exclusive residential area in Mexico City, the Poltrona Frau Mexico City by Benetti Casa monobrand store aims to be in perfect harmony with the style of the surrounding neighborhood. Image: Poltrona Frau
The global luxury furniture market is projected to grow at a compound annual growth rate (CAGR) of 5.2 percent from 2022 to 2031.
Per a new report from Transparency Market Research (TMR), the global luxury furniture market will potentially reach $38.9 billion in sales by 2031. The sector is expected to generate $25.9 billion in sales by year’s end, up from $24.6 billion in 2022, according to a forecast by the Wilmington, Delaware-based market researcher.
“Rising demand from the real estate industry as well as increasing urban population in various emerging economies around the world are some of the major factors contributing to the growth and advancement of the global luxury furniture market,” the TMR report said.
Infrastructure development and growth of the hospitality industry in emerging economies around the world are expected to fuel the demand for luxury furniture, per the report.
In the near future, an increasing number of commercial spaces, such as restaurants, hotels and clubs, will likely be key end-users of luxury furniture items as they strive to create luxurious customer experiences.
Rapid urbanization, increasing disposable income and rising spending on domestic luxury furnishing products are also projected to create lucrative opportunities for players and manufacturers in the global luxury furniture market over the next few years.
The rising popularity of luxury indoor furniture in bedrooms, kitchens and bathrooms, among others, is fueling the global luxury furniture market, per TMR.
Expansion in the hospitality sector, including luxury hotels, resorts and premium real estate developments, drives demand for high-quality, upscale furniture, fueling the growth of the luxury furniture market.
Key takeaways
Based on material, wooden luxury furniture dominates the market due to its finishing and adaptability.
Seen by distribution channels, online segments dominate the market during the forecast period.
Key trends and opportunities
The rise of ecommerce platforms and online retailing has expanded the reach of luxury furniture brands, allowing them to tap into global markets and capture a broader consumer base, per the report.
Increasing demand for customization and personalization in furniture is boosting market growth as customers tailor pieces to their preferences.
Increasing awareness and concern for the environment is also driving demand for sustainably sourced materials, eco-friendly production processes and furniture designed with sustainability in mind.
Finally, integration of technology in furniture design, such as smart furniture with embedded technology – for example, Internet of Things-enabled furniture – appeals to tech-savvy consumers seeking convenience and innovation.
Regional analysis
The luxury furniture market in North America emphasizes modern, contemporary designs, often featuring clean lines, minimalism and a focus on functionality, per TMR.
There is a demand for high-quality materials and customizable options.
Europe is expected to dominate the luxury furniture market with constant CAGR over the forecast period, owing to rise in urban population, preference of consumers for luxury products and rapid increase in ecommerce sales of home improvement products in this region.
Competitive landscape
The luxury furniture market is highly fragmented.
Local and regional players are primarily focused on expanding their offerings in stores such as hypermarkets and supermarkets.
“Implementation of strategies such as new product launches, and mergers and acquisitions to ensure superior product visibility, consumer recall and enhancement of the consumer base and revenue share are projected to significantly propel the market during the forecast period,” the report said.
Among the key players in the segment are:
- Nella Vetrina
- Muebles Pico
- Scavolini S.p.A.
- Laura Ashley Folding PLC
- Henredon Furniture Industries Inc.
- Cassina S.p.A
- Iola Furniture Ltd
- Turri S.r.l
- Giovanni Visentin srl
- Heritage Home Group LLC.
Key developments
- Roche Bobois is renowned for offering contemporary designs and collaborations with high-profile designers, leading to luxurious and unique furniture collections
- Natuzzi is known for its Italian craftsmanship, specializing in high-end leather sofas and furniture that focus on comfort and style
- Herman Miller is recognized for iconic designs and innovations in ergonomic and modern furniture, catering to both residential and commercial spaces
- Poltrona Frau is celebrated for its leather upholstery and craftsmanship