Market Research Reports - Ken Research Global Luxury Furniture Market

Global Luxury Furniture Market: Ken Research
Introduction: Luxury Furniture was something that only the wealthy could usually afford and
primarily still is, although there has been significant increase in the capacity for those who can
afford to obtain luxury furniture. Rising disposable income and the effect of cultural
globalization have boosted the demand for luxury furniture and moved the demand center
from the hospitality sector to the homes of individuals. While the hospitality sector was the
predominant market for luxury furniture, there is now an increasing desire for consumers to
purchase luxury furniture. This is further supplemented by the growing use of luxury furniture
in Spas which is one of the key markets for industrial sale of luxury furniture due to the high
reliance on aesthetics.
Market Overview: The luxury furniture market is expected to grow significantly in the
upcoming period with the market valued at USD 23 Billion in 2017 and to be worth over 30
Billion by the end of 2023. This gives it a modest CAGR of 4.6%. The market is poised to grow
faster beyond 2025 owing to increasing standards of living and an expected growth in
consumer disposable income. A major demand segment in luxury furniture is the use of art
based furniture and recycled furniture, both of which are expected to be worth over USD 2
Billion by 2020. The luxury furniture market is expected to be one of the key drivers behind the
growth of the furniture market. With increasing emphasis on design and comfort, luxury
furniture is poised to have major increase in industrial as well as commercial demand. The main
channels for sale also play a crucial role as most luxury furniture is unique and the originality
becomes a major selling point, hence, brands focus on the extent of differentiation they can
offer in their design aiming to create design that cannot easily be replicated or to use materials
that are rare for the construction of the furniture. Primary sales channel works through the
distributor as many times, manufacturers deal with industrial sales majorly. Although the
manufacturer winds up having higher margins despite mostly having lower prices than the
distributor. Although the largest contributor to the market will be in the European region, the
market is expected to experience high growth primarily in the Asia pacific and the Middle East
region. Emerging economies are expected to be participants in the luxury furniture market in
the long term
Key Drivers: The main drivers behind the luxury furniture market in any region are relatively
similar, the primary driver being the increase in disposable income. Growing changes in lifestyle
along with cultural and financial growth of the population have led to the market demand for
more unique and authentic furniture which has originality attached to it. Another key driver is
the increased demand from the hospitality sector owing to the increase in construction of
luxury hospitality facilities in Asia and Europe. The other key driver is the emergence of the
furniture art market where the entire focus is on the design of the furniture.