The Household Furniture Market Is Driven By The Growing Popularity Of Eco-Friendly Furniture
The global household furniture market will grow from $253.3 billion in 2018 to $347.6 billion in 2023 at an annual growth rate of about 8%. The household furniture market is expected to benefit from the growing popularity of products made from sustainable raw materials such as rattan. Consumers are showing a preference for furniture with raw materials procured from sustainable sources. Household furniture products made from rattan, which grows faster than wood, are durable and more resistant to wear and tear. This has increased its use in household furniture manufacturing. According to a survey conducted by the Hong Kong Trade Development Council (HKTDC) in 2018, around 90% of respondents were interested in using furniture products made from green, eco-friendly materials, and were willing to pay a premium of around 14% for products made of green materials.
According to a different survey conducted by Furniture Today in 2015, 70% of respondents were willing to pay more for eco-friendly materials. This rise in the demand for eco-friendly products is likely to drive the household furniture market during the forecast period.
Household furniture manufacturers are also increasingly adopting sustainable practices for furniture production due to increasing environmental concerns and growing consumer awareness on ecological-friendly living. Companies manufacturing eco-friendly furniture products procure wood from plantations that grow sustainable plants and have a long-term conservation policy. This sustainable approach includes minimizing fuel consumption, and recycling sheet metal and wood by-products. For example, Crate and Barrel, a North American home retailer is working directly with the Tropical Forest Trust, a non-profit organization, to ensure that the selected hardwood for manufacturing their furniture is procured from sustainable plantations that are managed for their long-term conservation. Similarly, Ashley Furniture Industries, Inc. has adopted a sustainable approach, with a focus on replenishing, recycling and reusing furniture by using recyclable engineered wood and reducing wastage of raw materials. Ashley Furniture Industries, Inc. was also among the largest competitors in the global household furniture market in 2018. Ashley Furniture Industries is a privately held company, engaged in the designing, manufacturing and marketing of home furniture. The company was founded in 1945 and is headquartered in Arcadia, Wisconsin, United States. Ashley Furniture’s growth strategy is also focused on improving efficiencies to better serve its customers through sustainable investments. For instance, in March 2017, the company invested $65 million to build a new facility in Mesquite, Texas, United States. In June 2017, it invested $30 million to construct a new e-commerce fulfillment and distribution center in Arcadia, Wisconsin, United States.