Key regions: France, Brazil, Canada, Worldwide, United Kingdom
Overall, the COVID-19 pandemic had a generally positive impact on the global Furniture market, and the Home Decor segment was no exception. COVID-19 lockdown restrictions required many people to stay home, giving them ample time to rethink the aesthetics surrounding their living spaces. One of the major drivers behind this growth was the shift in discretionary spending as many people chose to focus more of their income on household spending vs. out-of-home spending. In its 2021 annual report, Wayfair, one of the top retailers in online furniture and home decor, stated that the shift in consumer spending was one of the main reasons for its lower sales in the second half of 2021. Thus, it is possible to conclude that consumer spending is a major driver in furniture and home decor sales.
While there was a significant increase in home-decor-related purchases, the segment experienced the smallest revenue percent change when compared to other segments within the Furniture market. One of the reasons behind this is that people placed a higher priority on bigger ticket items which improved overall comfortability, e.g., couches and beds. It is also likely to be why Living Room and Bedroom Furniture segments saw a higher revenue percent change compared to this segment during the beginning of the COVID-19 pandemic.
Looking ahead, steady revenue growth can be expected in the Home Decor segment; however, there are still challenges that could put downward pressure on its revenue growth. One of those challenges is the current cost-of-living crisis that has slowed down the growth for most of the Furniture market in 2022. This has the potential to persist well into 2023. However, lowering inflation figures due to increasing interest rates and the easing of COVID-19 lockdown restrictions in China gives us hope that people will be better financially positioned to improve the aesthetics within their homes in 2023.
Data coverage:
Data encompasses B2C enterprises. Figures are based on home furnishings and furniture found in every room of the home. This market is segmented by the room where the furniture is likely to be used and consists of the following: Living Room, Bedroom, Kitchen and Dining room, Bathroom, Outdoor, and Home Office. The Furniture market also includes Lamps and Lighting and Home Decor because the furnishings and accessories within these segments are not specific to any room.Modeling approach / Market size:
Market sizes are determined by a top-down approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use national statistical offices, international institutions, in-house market research, and resources from the Statista platform. Next we use relevant key market indicators and data from country-specific associations such as consumer spending and GDP. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing is well suited for forecasting the Furniture market with a projected steady growth. The main drivers are furniture and furnishings, carpets and other floor coverings, and consumer spending per capita.Additional Notes:
The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.
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