The European home furniture market is anticipated to witness strong growth in the forecast period. The rise in disposable income, increasing construction activity in the region, and growing urbanization are some of the major factors attributing to the growth of the market.
Europe plays a key role in the furniture sector, not just in terms of output but also in terms of consumer prices and foreign exchange standards. Wooden furniture is most popular and preferred in European homes with Oak being a popular choice amongst the furniture makers in Europe as it is extensively available in the region and not very expensive.
The furniture production in Europe accounts for nearly 1/4th of the furniture industry globally with western Europe accounting for the largest share. Western Europe accounts for over 400 million consumers and kitchen furniture is one of the prominent home furniture segments in western European countries. Italy, Germany, UK, Poland, and France account for nearly 60-70% of Europe’s furniture production.
Key Market Trends
Increased Construction of Housing Units in the Region
Between 2017 and 2019, there was an increase in new-build housing units in Europe, especially in Germany, Poland, and Spain. This demand for new housing units is expected to continue further between 2020 to 2021. These houses need to be furnished and decorated, which may indicate growth in consumption in the home furniture products, especially in these countries.
The construction of new houses and renovation of the existing ones leave customers with more expenses on home furniture products as the houses need to be well furnished, thus, driving the market growth.
Growing Demand for Home Furniture Products through E commerce
The online furniture and homeware sales are expected to see an average yearly growth of 10% worldwide and Europe is also witnessing a surge in online sales of furniture products. For instance, in Europe, countries like the United Kingdom are counted as the 5th largest market for furniture purchased online, and these numbers are expected to increase further in fore coming years.
One of the key benefits with online retailing is increased choice and a higher level of personalization which stimulates purchase decisions of customers. The rising digitalization of furniture and interior shopping offers immense potential to retailers and many players such as IKEA and Amazon are investing heavily to increase their online presence in household e-commerce. Amazon also launched one of its largest catalogs for home and kitchen furniture in 2018 named Rivet and Stone & Beam, followed by Alkove, Movian, and two others in 2019.
The European home furniture market is fragmented and competitive with the presence of players such as IKEA, Natuzzi, BoConcept, and B&B Italia. The European furniture manufacturers have a good reputation worldwide due to their creative capacity for new designs and responsiveness to new demands which makes the market highly competitive and the players constantly innovate in terms of product designs.
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