The World Upholstered Furniture Industry Landscape

GLOBAL MARKET IS STABILIZING AT PRE-PANDEMIC LEVELS
According to CSIL’s report ‘The world upholstered furniture industry‘, the world upholstered furniture market amounts to USD 73 billion, about 16% of the total furniture market. This estimate is based on processing by CSIL of data from industry and official sources, both national and international, that cover the 70 most important countries.
The largest markets are the United States, China, and Germany. Following the rebound after the pandemic, which saw a 22% increase in global upholstered furniture consumption (2021 compared to 2020, in current USD), the market has shown slow growth over the past decade, averaging a 1% annual increase. In 2023, the global market contracted by 8%, gradually returning to pre-pandemic levels.
DIFFERENT PERFORMANCES AT REGIONAL AND COUNTRY LEVEL
Asia and the Pacific, along with North America, are the dominant markets for upholstered furniture, each comprising more than 30% of the global market share.
Over the past decade, North America has increased its market presence at the expense of Europe, which now holds over 25% of global consumption. In 2023, the US market saw a double-digit decline from the previous year, primarily due to a sluggish housing market, high inflation, and rising interest rates.
Meanwhile, China, the second largest market, experienced relative stability in 2023 following a downturn in 2022. Factors contributing to this stabilization include modest growth in furniture retail sales, especially in the latter half of the year, and governmental support for the housing and home furnishings sectors. Among the major markets, India has shown consistent growth, increasing its market size by 5% in 2023, measured in current US dollars.
GLOBAL TRADE LANDSCAPE IS SLOWLY CHANGING
International trade of upholstered furniture has increased every year from 2016 to 2021. It decreased in 2022 and 2023 after the extraordinary growth in 2021.
World GDP prospects and declining inflation are positive factors for international trade of upholstered furniture, but geopolitical tensions and disruptions to global trade suggest a cautious forecast.
Prospects for 2024 and 2025 are positive, with a 3% and 6% increase rate respectively. Even after these increases, world upholstered furniture trade would remain well below the 2021 peak. With over 35% of its production traded internationally, the upholstered furniture sector demonstrates a global dimension. However, several factors, including increasing trade barriers and tariffs, geopolitical issues, and logistic and transport problems are undermining this trend and changing the dynamics of trade. In 2023, for the first time in ten years,
United States imports registered a double-digit decrease. It is worth noticing that Vietnam became the United States’ largest trade partner for upholstered furniture, overcoming China (the traditional largest country of origin for US upholstered furniture imports). The increasing importance of Vietnam as a trade partner is also the result of leading export-oriented Chinese upholstered furniture manufacturers relocating their production to the country. Then, partially because production costs increased fast in those countries, and companies are increasingly asked to reduce the time-to-market, Chinese manufacturers started to open facilities across different geographical areas (more recently, Mexico has been among the preferred destinations, but also US and Europe).
However, the evolution of trade policies (particularly in the US) and transport costs significantly impact the comparative advantages of individual countries, consequently influencing companies’ decisions on production investments and manufacturing plant locations.
The global dimension of the upholstered furniture sector is also evident from the high level of production delocalization.
COMPETITIVE SYSTEM
The upholstered furniture industry is highly competitive, with several small-and-medium companies operating on the market. Even if small companies dominate the sector in terms of turnover and number of employees, the upholstered furniture manufacturing sector has seen significant consolidation, primarily driven by major merger and acquisition deals among large manufacturers and the strong performance of leading companies.
The leading 100 upholstered furniture manufacturers, selected by CSIL, are spread worldwide, with companies/groups headquartered in 20 countries. The largest companies and groups in terms of revenues are headquartered in the US and China. Regarding Europe, manufacturers with an estimated upholstered furniture production exceeding USD 200 million are based in Italy, Germany, Norway, Poland, Romania, France, and UK.
MARKET OUTLOOK
Following a contraction in 2023 and a challenging 2024, global consumption of upholstered furniture is forecasted to rise modestly in 2025.
This projection faces downside risks from regional conflicts, slow growth in China, and increasing geoeconomic fragmentation. It deserves to be mentioned that forecasts are based on macroeconomic projections provided by international organizations (particularly the International Monetary Fund and the Organization for Economic Cooperation and Development), adapted to the specific features and prospects of the upholstered furniture sector.
Sources: CSIL’s Upholstered Furniture Industry Reports. See at www.worldfurnitureonline.com/multiclient-research/upholstered-furniture/