Designer Furniture Has Become a Promising Sub-Niche of the Furniture Market

The furniture industry is an integral and dynamic component of the global economy, encompassing a wide range of activities including production, distribution, and retail.  Following the current market trends through close analysis of market statistics, we observed a number of developments that can inform our readers on how sub-markets are evolving, shaping the industry at large.

Designer furniture, for example, is a segment of this vast market, which offers a unique lens through which to observe some of the challenges and opportunities of a dynamic industry landscape.

The furniture market at large

The global furniture market is a multifaceted industry, accounting for residential and commercial furnishings. In 2022, the industry’s value was estimated at 557 billion U.S. dollars, indicating its significant impact on global trade and economy. Various sub-markets such as office furniture, ready-to-assemble (RTA) furniture, and outdoor furnishings, each of which record a significant incline, contribute to this substantial figure.

Other sub-markets, like bespoke furniture and luxury collections, often situated in high-income areas, show a similar growth, despite the low net revenue of their global market. But let’s discuss the current influencing factors that drive these niche segments and the furniture industry at large.

Economic impact and industry trends

The furniture market is not immune to economic fluctuations. During recessions, such as the one triggered by the 2020 coronavirus pandemic, the industry often faces a negative drawback. Consumer spending on non-essentials like home decoration and renovation tends to decline, affecting overall sales. This trend was evident in IKEA’s sales figures, where for the first time in decades there was a year-to-year decline in revenue.

The Swedish giant, however, which is a household name in the furniture industry, has successfully capitalized on the RTA furniture trend. In 2021, the company generated over 40 billion dollars globally, underscoring the increasing consumer preference for affordable, stylish, and easy-to-assemble furniture options.

On the other hand, designer furniture is also galloping apace. Despite being a smaller segment, the manufacturing and distribution of luxury furnishings present significant growth potential. With a market valuation of 24 billion dollars, as reported by a Newswire press release from Transparency Market Research, this segment is characterized by increasing demand and slower supply growth. This gap offers lucrative opportunities for skilled manufacturers to create bespoke, high-quality designer furniture.

To learn about this market segment, we interviewed Alireza Yavari, the chief brand officer behind SENTIENT Furniture, which is a reputable New York design furniture manufacturer, located in the heart of Brooklyn. According to Yavari, there is increased interest for high-end commercial furniture focusing on ergonomics and biophilic design, as well as sustainable materials and eco-friendly options. Weaving these specifications together is a delicate process that took SENTIENT years of improvements with regards to manufacturing and supply-chain dynamics.

“It takes a lot of very talented designers and expert craftsmen to see this process through”, says Yavari, pointing out to the fact that design furniture is difficult to make, as it takes a lot of team effort.

Future outlook for designer furniture and the industry as a whole

The furniture market is expected to continue its growth trajectory, with projections estimating a value of approximately 650.7 billion U.S. dollars by 2027. This growth signifies the ongoing evolution of consumer preferences and the importance of innovation in meeting diverse demands, from functional RTA pieces to exclusive designer collections.

With consumer demands evolving, the market might pivot towards more sustainable solutions, and custom designer furniture that is much easier to integrate into commercial environments.

Buyers are concerned with their environmental footprint, while also aiming to reduce volatile organic compounds (VOC) in their indoor spaces, or improve the ergonomic score of their work and lounge furniture. Concern for individual and collective health is the notable trend across the industry, which is why large retailers and small workshops are interested in innovative manufacturing processes and investment in supply improvements.

According to Mr. Yavari, people are ready to pay a premium insofar as the product meets their values and aesthetic preferences, which is why the luxury furniture market is far from being saturated.

What to expect for designer furniture in the near future?

Designer furniture, as part of the broader furniture market, is a window into the industry’s multifaceted nature. From economic influences to consumer trends, understanding this market is key to appreciating the intricate relationship between design, functionality, and market dynamics.

If the most frequented New York design shows offer any clue, it is that luxury furniture will remain tied to overall design trends, with a significant emphasis on responsible manufacturing and eco-friendly appeal. Bespoke pieces, according to our expert guest Yavari, are always preferable to design studios who want to experiment with novelty and chase the high fashion wherever it leads. The adaptability of designer furniture is hard to commercialize with prefabricated products, which is why it will continue to dominate high-end hospitality venues and luxury residences.