DIVERGENT REGIONAL AND NATIONAL TRENDS

Asia and the Pacific, along with North America, continue to lead the global market, followed by Europe. At the country level, the United States and China remain the two largest upholstered furniture markets, jointly representing more than half of global demand.

In 2024, the U.S. market recorded an increase compared to the previous year, supported by resilient consumer spending and an almost 10% rise in imports, despite protectionist trade policies. In contrast, China, the second-largest market, posted a modest growth, following a downturn in 2022.

The recovery has been helped by policy support such as tax cuts and incentives for home renovation, although long-term momentum remains uncertain. Among major markets, India continues to stand out, fuelled by urbanisation, a growing middle class, and increasing demand in hospitality and high-end residential sectors. With a young and digitally connected population, India is expected to maintain one of the highest growth trajectories in the coming years.

GLOBAL TRADE: STABLE VOLUMES, SHIFTING STRATEGIES

International trade continues to play a central role in the upholstered furniture sector, with over 35% of global production traded across borders. However, recent years have highlighted the volatility of global trade dynamics. After steady growth through 2021, international trade volumes declined in 2022 and 2023 before rebounding in 2024. Even so, trade flows remain below pre-peak levels. World GDP prospects and easing inflation support positive trade developments, but geopolitical tensions and evolving trade policies, particularly in the U.S., introduce significant uncertainty.

In 2024, the U.S. remained the largest importer, with total imports valued at around USD 9 billion. For the second consecutive year, Vietnam overtook China as the leading supplier to the U.S. This shift is largely attributed to Chinese manufacturers relocating production to Vietnam to bypass tariffs and reduce costs. Meanwhile, other production hubs—Mexico and Eastern Europe—are increasingly attracting investment due to their proximity to key markets and competitive operating conditions. The trend toward multi-country production strategies has accelerated.

Around 40% of the top 100 upholstered furniture manufacturers now operate production facilities outside their home country. This strategic diversification helps companies manage geopolitical risk, reduce time-to market, and optimise cost structures. However, challenges persist reshoring efforts in the U.S., for example, face hurdles such as labour shortages and high input costs.

COMPETITIVE SYSTEM: CONSOLIDATION AND STRATEGIC REPOSITIONING

The global upholstered furniture industry remains fragmented, but recent years have seen growing consolidation.

According to CSIL, the top 100 manufacturers, selected based on turnover, now account for about 30% of global production. These companies are headquartered in 20 countries, with the U.S. and China home to the largest players in terms of revenues. In Europe, key producers exceeding USD 200 million in production value are based in Italy, Germany, Poland, Romania, Norway, France, and the UK.

The past five years have seen a wave of mergers and acquisitions, alongside investments in new manufacturing plants and vertical integration. Major Chinese companies such as Kuka and Man Wah continue to expand internationally, with large-scale plant openings in Vietnam and Mexico. European firms like Natuzzi are also reconfiguring their global operations—shifting production from China to Vietnam, consolidating Asia- Pacific operations, and strengthening their European manufacturing footprint to mitigate tariff exposure. In the U.S., manufacturers such as Flexsteel and Ethan Allen have invested in regional production upgrades, while La-Z-Boy has reorganised its Mexico operations to boost efficiency.

At the same time, financial investors, particularly private equity firms, have increased their presence in the sector.

MARKET OUTLOOK: CAUTIOUS OPTIMISM FOR 2025 AND BEYOND

Looking ahead, global consumption of upholstered furniture is projected to rise by 1% in 2025, with a further increase forecasted for 2026. Geopolitical instability, potential trade disruptions, and sluggish growth in China all represent significant downside risks. According to CSIL’s latest industry survey, about one-third of manufacturers anticipate improvement in 2025, while the majority remain cautious, adopting a “wait-and-see” approach to investment and expansion

Want to know more?

CSIL report ‘The World Upholstered Furniture Industry’, a comprehensive picture of the global sector, including production, consumption, and trade data for the years 2015–2024, and forecasts for 2025–2026. It also includes detailed profiles of the leading manufacturers and a focus on the top 20 countries in the upholstered furniture industry. The report presents key topics and manufacturers’ strategies to address the recent market challenges.

Source: CSIL World Furniture Magazine #07, September 2025

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