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Market Research Report

United States (U.S) Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

Published Date :

2021-03-01

Report Pages :

239

Format :

PDF

Region Covered :

United States

United States Furniture Market Overview

With a stable economic outlook, the forecast for the USD 96.00 billion furniture industry is optimistic over the midterm, and Furniture Today anticipates the sector will grow at a 2.90% compounded annual growth rate through 2019. Furniture retailers need to operate in a landscape that is changing from a generational change point of view. Millennial, who now represent the largest age group in the market, approach home ownership and furnishing differently than do older generations. Factors such as affordability of housing in productive labour markets, student debt and the growth of the sharing economy have led young adults to delay living independently and forming households. This means millennial are often looking for smaller, multifunctional and affordable furniture that fits into a dynamic and urban lifestyle—and retailers need to adjust to this demand.

urthermore, furniture companies need to continue to address a maturing Omni-channel environment, as more and more shoppers are looking online for information and to purchase. According to e-marketer, online sales of furniture will reach USD 32.00 billion by 2025, growing at an annual rate of 11.00% and continuing to eat into brick-and-mortar sales. The estimated consumption of all furniture in the United States reached USD 64.10 billion in 2001. About one-third of that (USD 23.00 billion) consisted of domestic factory shipments. The American market for wooden furniture was valued at USD 22.00 billion. The primary reason is imports of lower-priced furniture from Asian countries, particularly China. The Chinese furniture market has now become a huge industry incorporating about 4.00 million employees, exporting more than 32.00% of the total furniture production and satisfying demand. For Instance, Littlejohn & Co has acquired a private investment firm based in Connecticut has acquired manufacturing of outdoor furniture and accessories.

The top 100 represent 79.00% of the industry’s revenues, according to Furniture Today, while eight years ago, before the recession, they accounted for 59.00%. And furniture stores now number around 23,000 down nearly 20.00% from before the recession, largely due to growth in furniture ecommerce and the optimization of distribution networks. For example, in 2014, sales at Overstock.com, Amazon and Way fair, the three largest retailers of furniture online, grew by 14.80%, 19.50% and 44.00%, respectively. The United States is the biggest single producer with an output of around USD 25.00 billion. If the manufacturing of contract and company office furniture is accounted for, the United States output moves up to USD 40.00 billion–USD 45.00 billion annually. Furniture and home furnishings stores generated about USD 106.78 billion worth of sales in 2015. In 2015, the average annual expenditure per consumer unit on furniture in the United States amounted to over USD 500.00 dollars; with about USD 140.00 dollars of that being spent on sofas. The recent development of, and outlook for, the USD 114.00 billion furniture retail market.

US Furniture Industry Landscape

Department Stores

JC Penny

Macys

 

Bedding stores

Mattress Firm

Sleepys

Sleep Number

Discount Department

Target

Walmart

 

Lifestyle Stores

Crate & Barrel, Restoration Hardware

Bed Bath & Beyond, Pier 1 Imports

Williams Sonoma, IKEA

Manufacturing Brands

Ashley

La-Z-Boy

Berkshire Hathway,Ethan Allen

Office Supply Stores

Staples

Office Depot

 

Rental Stores

Aaron’s

P&C

 

Traditional Furniture

Raymour& Flangian

BOB’S Discount Furniture

Haverty’s, American Signature Furniture, Rooms to go

Club Stores

COSTCO

Sam’s Live

 

DIY Stores

LOWE’S

The Home Depot

 

E-Commerce First

Overstock

Way fair

Amazon

 

United States Furniture Market Segmentation

By Product Type

  • Seating’s
  • Sleeping’s
  • Storage
  • Accessories
  • Tables

By Material

  • Wood
  • Metal
  • Plastic
  • Glass
  • Leather

By Price Range

  • Mass Market Furniture
  • Premium/Luxury Furniture

By Distribution Channel

  • Online Distribution Channel
  • Offline Distribution Channel

By Supply

  • Domestic
  • Imported

By End Users

  • Residential
  • Commercial

United States Furniture Market Dynamics

United States Furniture Market: Growth Drivers

  • Housing starts, home resale, and home repair & renovation are growing demand drivers for the U.S. furniture sector. Housing starts in 1997 were USD 1.50 million, rising steadily until peaking in 2005 at USD 2.10 million and then declining 12.90 per cent in 2007 and 24.70 per cent in 2008. According to the National Association of Home Builders cited by Buehlman and Schuler (2009), single-family housing starts in May, 2009 dropped 41.00 per cent compared to May 2008. Home re-sales have also declined with the mortgage crisis associated with the current recession. Homeowner purchases to repair/remodel their home have also been impacted but not at the dramatic declines seen in new home construction.
  • In mature markets, the growth of the furniture trade relies on shortening replacement cycles by stimulating consumers to buy new furniture before their existing furniture is worn out. The media and television in particular, are playing a strong role as stimulator. TV specials are used, particularly in United States, to prepare the market for new products by raising interest in home interior design and prompting more consumers to buy new furniture purely for design or fashion reasons. This has also increased demand for a wider variety of products than in the past.
  • Moving to a new house often leads to the purchase of replacement furniture, even from consumers who are not first-time buyers. Consumers setting up a home for the first time will usually purchase a wider range of household furniture than will movers. The number of single-person households has increased rapidly in the major European markets. This is partly due to the decline in the number and postponing of marriages, and the rise in separation and divorce rates.
  • Single-person homes are smaller than family homes, and may not have separate rooms for dining and other purposes. They therefore have different furniture needs, requiring multifunctional and space-efficient furniture. The ‘think cubic’ promotional view of one major retailer for 2002–2003 is a point. Demand has risen for multifunctional and space-efficient furniture, while the market is declining for traditional three-piece suites and large dining tables. Another driving force has been demand created by new needs. For instance, demand for home office furniture for information technology (IT) applications has been rising with the increase in international and distance working.

United States Furniture Market: Market Challenges

U.S. imports of furniture were insignificant in comparison to the furniture imports increased nearly 350 per cent. The Imports from Asia have shown consistent growth since 1976 and have dominated the U.S. market in the 19801s due to relatively low priced furniture directly tied to low-cost labour forces. The biggest long-term challenge facing the U.S. furniture industry is increasing imports of furniture while furniture exports remains nearly flat.

United States Furniture Market: Market Opportunities

The empowering scale of the Chinese furniture industry, the way forward for emerging tropical exporters will be to move away from the strategy of original equipment manufacturing (OEM) towards original design manufacturing (ODM) and ultimately to original brand manufacturing (OBM). The development path can take the following steps:  Low-cost furniture and components are typical OEM outputs, produced by high-speed automated and other high-technology machines with limited product design requirements. In these segments, production costs need to be pushed to the minimum (and maintained) in order to stay competitive.  A shift to original design manufacturing will be warranted. Original Design Manufacturing is currently taking hold in the furniture industries of the leading tropical exporting countries, such as Malaysia and Thailand. 

United States Furniture Market Segmentation Analysis

Despite the fact that millennial are delaying the decision to start a household, they show great potential in terms of spending on furniture. The millennial have become the largest consumer group in the US furniture and bedding market. In 2014, they represented 38.00% of the market, a significant increase compared to the 14.00% they represented in 2012. As far as spending goes, millennial are not there just yet: because they have lower average disposable incomes, they naturally spend less than older consumers do. In the furniture and bedding category, millennial represent 28.00% of the total spend, while baby boomers account for 36.00%. That said, from 2012 to 2014, millennial’ share of spending on furniture and bedding more than doubled. A closer look at the actual dollars spent provides a clearer picture of why millennial are becoming increasingly important to furniture retailers. Between 2012 and 2014, the groups spend increased by 142.00%, from USD 11.10 billion to USD 27.00 billion. Generation X consumers also spent more on furniture and bedding over that period, increasing their consumption by 43.00%. With USD 35.00 billion spent on furniture, baby boomers remained the biggest spenders on furniture, but the value of their transactions declined by 17.00% over the course of the two-year period. United States imports have been growing fastest in wooden bedroom furniture. Imports of ‘other’ furniture (living/dining room, small/occasional, shop furniture), parts and components, and kitchen furniture (cabinets) have also recorded strong gains. Demand is rising for occasional furniture (small tables, wall stands and accent pieces, etc.) offering new and unique looks. The market is dominated by imports, as this type of furniture is easy to ship in volume and can be made rapidly available in new designs. The wider application of information technology and home/distance working calls for larger entertainment storage units and ‘concealed’ home office furniture as well as desks and shelving systems. Wooden furniture have seen a rise as wood is sturdy and cheap.

Mergers and Acquisitions: Furniture Market

Churchill Downs Acquires Stanley Furniture .In November 2017, Churchill Downs, a limited liability firm founded by Walter Blocker (chairman of the Vietnam Trade Alliance), announced an agreement to acquire substantially all of the assets of the Stanley Furniture Co. Established in 1924, Stanley Furniture is a design, marketing and overseas resource in the upscale segment of the residential wood market. Churchill Downs will acquire the assets for USD 11.50 million in cash, a USD 4.60 million subordinated secured promissory note, and a 5.00% equity interest in Churchill’s post-closing parent company. According to the press release, the closing of the asset sale, which is subject to approval by Stanley‘s stockholders, is expected to wrap up early 2018.

Hooker Furniture Acquires Shenandoah Furniture. In September 2017, Hooker Furniture reached a definitive agreement to acquire Shenandoah Furniture, an upscale domestic upholstery manufacturer, for USD 40.00 million. Shenandoah is well-positioned as a supplier to what is known in the furniture industry as the lifestyle specialty retail distribution channel, which offers furnishings and decor in the upper-medium price points, in brick-and-mortar stores and online. No changes to Shenandoah’s operations are anticipated

Aterian Investment Partners Acquires Standard Furniture .In August 2017, Aterian Investment Partners acquired Standard Furniture Manufacturing Company, Inc., a leading U.S. manufacturer and international importer of high-quality indoor residential furniture. Notably, Standard Furniture partnered with celebrities Chip and Joanna Gaines to launch the Magnolia Home line in 2016. William Hodgson, Chairman, and Todd Evans, CEO, will continue to lead Standard Furniture as the partnership with Aterian aims to pursue additional business initiatives and service offerings

Players Specific Data (Product Launch, International and Domestic Players Dominance, Sales Distribution)

Product Launch

Marxent offers new options for social media image creation. Social Room’s tool makes it easier to generate new content. Marxent, a furniture technology provider, has released a new tool called social rooms designed to make easy for retailers to design interior scenes and then export those images for sharing on social media channels. Social Rooms makes it possible to deliver fresh content on the daily basis. Marketing teams can quickly launch social campaigns that match merchandising priorities using high definition without pre planning photo-shoots or professional graphic designers. Social Rooms is a tool  where is it possible to create images from multiple vantage points , move products or change colors around in a space and show different rugs and chairs in the same scene in a different floor plan. Once the image is created it can be shared on Pin Interest, Instagram and Facebook and other social media channels etc.

International and Domestic Players Dominance in Furniture Market

Domestic Companies

Revenue

Sales

IKEA

25.50 billion

40.00 Billion

Target

75.40 billion

75.40 Billion

Wal-Mart

514.40 billion

331.66Billion

Amazon

280.50 billion

280.50 Billion

Way fair

6.80 billion

4.70 Billion

Ashley Furniture Industries

4.70 billion

500.00 Million

Bed Bath & Beyond

12.00 billion

12.03 Billion

 

In that year, Ashley Home Store was the top ranked furniture store in the United States with sales that amounted to about USD 4.20 billion U.S. dollars.

Major Exports and Importers

U.S. export shipments of furniture grew by 75 per cent from USD 756 million in 1990 to over USD 1.30 million in 1995 and leading export destinations for furniture industry in 1995 were Canada, Japan, Mexico, Saudi Arabia and the United Kingdom .Department of Commerce and U.S. International Trade Commission (2009) data indicate that Canada has been the major importer of the U.S. furniture from 2000 to 2008. Mexico and the United Kingdom (U.K.) were also major export destinations for the U.S. furniture over this period. Furniture imports to the U.S. grew by 62 percent between 1990 and 1995 and Murillo (2007) states that that the imported part of furniture consumption increased from 13 percent in 1992 to 26 percent in 2000. It is estimated that between 1999 and 2007, the value of furniture imports increased 107.70 per cent to USD 3.40 billion dollars, while exports from the U.S. increased 40.10 per cent to 27.20 billion dollars. It is well-known that China’s presence in the world furniture has grown significantly over the years and is the biggest U.S. furniture importer since 2000 follows by Canada and Vietnam. In contrast, China is rising as an exporter and is attracting strong investment activity from American companies. Growing outsourcing of semi-finished products and components by the United States furniture industry has been a key driver for this emerging trade. The United States was by far the biggest market, with imports just below USD 10.70 billion in 2001. The other major markets were Germany (USD 3.30 billion), France (USD 2.60 billion), the United Kingdom (USD 2.30 billion) and Japan (USD 1.90 billion). As far as trends go, Germany was exceptional, as it was the only market to have registered a consistent decline since 1998. Imports into all other major markets – France and the United Kingdom in particular – rose between 1997 and 2001. The average annual growth rate was 5.90% in 1997–2001. Seats with wooden frames were the second largest imports (22.00%), with a yearly growth rate of 5.40%. Furniture parts of all materials (14.00%) and wooden bedroom furniture (13.00%) obtained the next largest shares. The trade in bedroom furniture expanded at the fastest pace (8.30% yearly). The rate for furniture parts was 4.70%. Wooden office and kitchen furniture each held a 6.00% share in world imports. Low growth rates (3.00%–4.00% annually) were observed in these product groups. The remaining 4.00% of trade was split between seats of cane, osier, bamboo, etc. (1.00%) and furniture of other materials like bamboo (3.00%). The seating sector performed negatively as imports declined 1.90% a year on average. In 2017, the United States was the leading importer of furniture from the rest of the world, with an import value of around USD 54.10 billion. Germany, ranked second, imported approximately USD 15.00 billion worth of furniture that year

Exports and Imports Data

Imports

In USD Million

Exports

In USD Million

Germany

15026.70

China

58335.90

United Kingdom

9101.10

Germany

12348.70

France

8563.40

Poland

11356.20

Canada

7085.90

Italy

11095.10

Japan

6655.70

Mexico

8013.70

Netherlands

4828.30

Vietnam

6382.50

Australia

3448.70

Canada

4595.30

Spain

3336.00

Czech Republic

4405.40

Switzerland

3307.20

United Kingdom

3054

 

Top US Furniture Retailers: Furniture, Bedding and Accessories Sales, 2014

Company

Estimated Sales(USD Million)

YOY% Change

Ashley Furniture Home store

3273.70

5.10

IKEA

2830.00

5.20

Williams –Sonoma

2400.00

9.80

Rooms to Go

1980.00

11.20

Mattress Firm

1933.00

39.40

Restoration Hardware

1490.00

23.70

Berkshire Hathaway

1454.70

6.00

Pier 1 Imports

1272.00

5.20

Raymour & Flanigan

1142.70

-0.70

Sleep Number

1119.70

16.60

 

Top US Distribution Channels

Channel

2012

2013

Traditional Stores

38.00%

36.00%

Manufactured Branded Stores

7.00%

7.00%

Lifestyle Furniture Stores

7.00%

8.00%

Direct to consumer

10.00%

12.00%

Others

8.00%

7.00%

Designers

7.00%

7.00%

Discount Department Stores

7.00%

7.00%

Rental Stores

4.00%

4.00%

Used Outlets

4.00%

4.00%

Warehouse Clubs

4.00%

4.00%

Department Stores

2.00%

2.00%

Office Supply Stores

2.00%

2.00%

 

In terms of product segmentation, living room furniture accounted for the bulk of the furniture spend in 2014, comprising 40.00% of sales, followed by bedroom furniture at 33.00%. Traditional stores were the main distribution channel for furniture in 2012 and 2013, even though they lost 2.00% market share to the direct-to-consumer segment during that period. As the biggest furniture retailer in the US, Ashley Furniture maintained its number-one position as a manufacturer in 2014, followed by La-Z-Boy and Klaussner Furniture Industries. Sauder Woodworking and Dorel Industries, which are big players in the ready-to-assemble segment, were fourth and fifth, showing very strong, high-single-digit growth in shipments. Two other companies showing notable improvement in 2014 were Standard Furniture and American Furniture Manufacturing, both of which increased shipments by over 20.00% year over year.

Furniture Market: Sales Distribution Data

Small stores with under 10 employees make up the greatest share of total furniture stores in the U.S., roughly 44.00% in 2016. That share has diminished since 2006 – falling 5.70 percentage points from 49.70%. The largest furniture stores with the highest number of employees (500 +) grew their share of furniture stores from 18.10% to 27.40% in nine years – a jump of 9.30 percentage points. Overall, furniture stores with less than 100 employees all lost share to larger furniture stores. Furniture sales (excluding Bedding) grew 6.30% year-end 2019 over 2018. The fourth quarter posted 7.90% growth over the same Q4 last year, but only 1.20% higher than the previous 2019 Q3. New furniture store openings jumped by 64.60%, while new home furnishings store openings increased by 20.90%. Unfortunately, 2012 saw the highest number of new furniture and home furnishings store closings. Furniture store closings skyrocketed 75.60%, while home furnishings store closing increased by 33.80%. The heaviest decline in both furniture and home furnishings stores occurred between 2007 and 2012. Furniture store locations dropped 18.80% during that period from 27,386 stores to 22,201. Meanwhile home furnishings stores fell 22.50% from 33,787 stores in 2007 to 26,184 in 2012. Furniture stores declined another 0.90% from 2012 to 2016, while home furnishings stores lost 5.30% more stores. Overall, from 2007 to 2016, the number of furniture store locations decreased by 19.60% and 26.50% for home furnishings stores. E-commerce is viewed as the biggest source of growth in the US furniture and home furnishings industry, and also as the largest source of disruption. E-marketer online sales will hit USD 32 billion by 2018, thanks to both improving sales at online players such as Way fair and Amazon and the ramping up of Omni-channel capabilities by traditional retailers. For example, Ashley Furniture is building a substantial online centre in Tampa, Florida, while IKEA is shifting resources to online retailing and investing in innovative ways to merge its offline and online channels. At the same time, e-trailers are witnessing double-digit revenue growth and a host of new start-ups are offering convenient and personalized options that cater to the evolving tastes of the US consumer. Within the e-commerce segment, mobile shopping, particularly via smartphone, is the biggest segment. Consumers, especially millennial, have thoroughly integrated smartphones into their lives, and retailers across the board are seeing substantial growth in mobile traffic and m-commerce transactions. Google published data on search patterns in the first quarter of 2015 that suggested the mobile phone would surpass the computer and tablet as the device generating the most search volume for furniture retailers by the end of 2015.

 

Year

E-Commerce Sales Forecast (USD Billion)

2014

20

2015

23

2016

26

2017

29

2018

32

2019

46

2020

52

 

Latest News in Furniture Market

Layla Sleep launches new hybrid mattress, Layla Sleep, a direct to consumer bedding brand announces the launch of the flappable Layla Hybrid Mattress. This is launched with the feedback of the entire population to solve common sleeping ailments with the help of the upcoming technology. This mattress is made in the USA it combines the Infinity Edge Coils with copper infused memory foam for a winning combination of firmness and coils. This mattress features two sides to suit every kind of sleeper and cushions the hybrid additional five layers. The mind gets recharged completely if you sleep every night on this mattress. This is designed to improve the blood circulation in the whole body to give the person a comfortable sleep.

Competitive Landscape of US (United States) Furniture Market

The key prominent players profiled in the report are:

  • Ashley Furniture Industries,
  • IKEA,
  • Steelcase,
  • Williams-Sonoma,
  • Rooms to Go,
  • TJX,
  • Herman Miller,
  • HNI,
  • Simplicity Sofa,
  • Copeland,
  • Johnston Casuals,
  • Kincaid,  
  • Vaughan Bassett,
  • 06 of 06,
  • Berkshire Hathaway Furniture,
  • Raymour & Flanigan ,
  • La-Z-Boy  furniture Galleries,
  • American Signature,
  • Restoration Hardware,
  • Boco do Lobo,
  • Fendi Casa,
  • Edra,
  • Henredon
  • May line,
  • Nucraft,
  • Artopex,
  • Bestar,
  • Foliot Furniture,
  • Nemschoff Chairs,
  • Imperial Woodworking,
  • Indiana Furniture,
  • Nightingale Corp,
  • T.J.Hale,
  • Watson Furniture,
  • Spectrum Furniture,
  • Tuohy Furniture,
  • Darran Furniture,
  • Wisconsin Bench,
  • Davis Furniture Industries,
  • Halcon Corp,
  • David Edward,
  • Mod form,
  • Neutral Posture,
  • Worden Co,
  • Xybix Systems,
  • High Point,
  • Jasper Chair,
  • Merric Chair etc.

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Our Report Covers:

  • The report includes Office Furniture Manufacturers, OEMs, Distributors & Brands Outlook (Market Competition & Regional Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers the Industry Insights (Future Trends & Forecast Data), Online Retailing and End User Analysis (Sales from Different End Use Sectors)
  • Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of United States Office Furniture Industry and further it bifurcated into States.
  • Sales Data of Office Furniture : By Each Product Type & Size, By End Users (B2B & B2C), By Brands, By Models, By Distribution Models, By Countries (Volume & Value), 2019-2035
  • Sales Outlook by Various Channels: By Channel Type (Stand-alone Stores, Flagship Stores, Brand Outlets, Multi-Brand Outlets, Specialty Outlets, Hypermarkets, Online Channels, etc.)
  • Manufacturing/Production of Office Furniture: By Manufacturers Type (OEMs, OBMs & ODMs), Production Data (By Machinery Type, By Countries), Manufacturing Capacity, Operational Margins, Distribution Analysis, etc.
  • Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, PESTLE Analysis, Pricing Patterns
  • Trade Data (Export & Import) : By Each Product Type & By Demand, 2019-2035
  • Supply & Demand Analysis, 2019-2035
  • Target & Potential Markets, By Major Countries
  • US Smart Furniture Industry Outlook : Current & Future Outlook, 2019-2035
  • US Furniture Industry Analysis (Manufacturers, Brands, New Products, Product Mapping, Investments, Pricing Pattern, Business Models, Annual Spending, Sales Channels Outlook, etc.)
  • The study provides an in-depth analysis with current and future trends to elucidate the imminent investment pockets in the market.
  • Current and future trends are outlined to determine the overall attractiveness of the market and single out profitable trends to gain a stronger foothold in the market.
  • Quantitative analysis of the current market and forecast from 2019-2035 is provided to showcase the financial competency of the market.
  • Drivers and opportunities are evaluated to highlight the top factors responsible for market growth. Various segments are carefully evaluated to gauge the potential of the market.
  • Porter’s Five Forces Model and SWOT analysis of the industry illustrate the potency of the buyers & suppliers participating in the market.
  • Competitive Outlook of major players of the US market as well as local market to understand the current business scenario and to understand the complexity and investment related factors.



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United States (U.S) Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

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