Global Furniture Market Demands has been on the rise year after year, and it’s more than just a blip on the radar. According to the 2022 report from the World Furniture Association (WFA), the retail and online furniture trade worldwide hit a whopping US$720 billion in 2021, showing a remarkable 14% growth compared to the not-so-fabulous 2020.
This surge in global furniture demand comes amidst the recovery of the global economy and the prevailing trends of home renovation and decoration during the Covid-19 pandemic. Let’s take a closer, chillaxed look at the specifics of the global furniture demand, especially the demand for rattan furniture products in 2022 and 2023, along with a sneak peek at what’s in store for 2024.
Global Furniture Demand in 2022
In 2022, global furniture consumption remained high, although not as turbocharged as the previous year. Specific demand for rattan-based furniture did show an increase, though not earth-shattering.
Still High, But Not as Speedy as Before
According to a November 2022 report by Italy’s CSIL Milano furniture research institute, the growth in global furniture demand in 2022 remained quite respectable at 5.5%, albeit lower than the stellar 14% achievement in 2021.
Trade Value Reaches US$740 Billion
Meanwhile, a special report on global furniture demand from Statista in the same month estimated the total trade value of furniture products (both retail and online) worldwide in 2022 could reach US$740 billion. This was an 8% increase compared to the trade value in 2021, which stood at US$720 billion. Overall, global furniture consumption in 2022 seemed to be growing pretty positively.
Rattan Furniture Demand Grows by 7%
Digging deeper, the Future Market Insights (FMI) report in the third quarter of 2022 highlighted that demand for rattan furniture products in 2022 experienced a decent growth of 7%. The increasing interest in rattan furniture is fueled by its natural, beautiful, and durable designs. Additionally, the trend towards simple and minimalist rattan furniture is catching on.
Global Furniture Demand in 2023
It’s projected that in 2023, the pace of global furniture consumption will ease up a bit compared to the growth achieved in 2022. However, the growth is expected to stay positive, and the trade value is still expected to be fantastic.
Slower But Still Positive
Based on the Global Furniture Market 2023 analysis released by Future Market Insights in November 2022, the projection for global furniture demand growth in 2023 is a tad slower, around 3%. This figure is lower than the actual growth achieved in 2022, which was 5.5%.
Estimated Trade Value of US$710 Billion
The report estimated the total trade value (retail and online) of furniture worldwide in 2023 could reach US$710 billion, a 2% decrease from the projected trade value of global furniture products in 2022, which was estimated at US$740 billion.
Rattan Furniture Demand Predicted at 6%
Specifically, the Future Market Insights report predicts a slight slowdown in the growth of global rattan furniture demand in 2023, around 6%, compared to the 7% growth in demand achieved in 2022.
Interest in Natural Material Furniture Persists
The positive demand for rattan furniture persists as global consumers are increasingly interested in furniture made from natural materials like rattan, known for its durability, compared to synthetic alternatives.
Predictions for Global Furniture Demand in 2024
After experiencing a slowdown in 2023, the Global Furniture Market Demands is predicted to bounce back and show positive growth in 2024. This includes the special demand for global rattan furniture, which is expected to improve.
Expected Growth of 4.5%
According to the analysis by Future Market Insights (FMI) released at the end of 2022, the projected growth in global demand for furniture products in 2024 is optimistic, with a rebound and positive growth of around 4.5%. This is higher than the growth prediction for 2023, which was only 3%.
Estimated Trade Value of US$750 Billion
The report projects the total estimated trade value of furniture products (retail and online) worldwide in 2024 to touch US$750 billion. This figure represents a 5% increase compared to the projected trade value of global furniture in 2023.
Positive Predictions for Rattan Furniture Demand
Specifically, the FMI report predicts that the demand for global rattan furniture products in 2024 will again show positive growth, ranging from 5-7%, compared to the 6% predicted for 2023.
Design Innovation and Material Combinations
The optimistic return of global rattan furniture demand is supported by contemporary design innovations in rattan furniture products, as well as the combination of rattan and non-rattan materials. These factors contribute to keeping rattan furniture relevant and in demand.
Factors Influencing Global Furniture Demand
Several key factors influence the fluctuation in demand for furniture products, both globally and domestically. Let’s casually explore these factors:
Global Economic Conditions
Macro-level global economic conditions significantly impact worldwide furniture demand. During a recession, demand tends to slump, while in good economic times, demand soars. For example, in 2022, global economic growth slowed due to inflation and the energy crisis in Europe, affecting furniture demand. Predictions for 2024 suggest an economic improvement, potentially leading to positive furniture consumption.
Lifestyle Trends and Home Renovation
Modern lifestyle trends and the prevalence of home and office renovation and redecoration activities contribute to the ongoing demand for various types of furniture over time. For instance, the current trend leans towards minimalism and natural aesthetics, boosting the demand for simple and natural wooden or rattan furniture.
Raw Material and Transportation Costs
The availability of raw materials and transportation costs also influences furniture prices. Scarcity of raw materials and high transportation costs due to an energy crisis can trigger an increase in furniture prices, potentially decreasing consumer demand for high-priced products.
Furniture Manufacturers Must Adapt
The dynamic nature of the Global Furniture Market Demands quick adaptation from industry players to remain competitive and sustainable. Actions such as innovative furniture design to stay relevant to market trends, diversification of raw materials, and optimizing resilient supply chains help ensure smooth production with controlled costs.
With a solid ability to adapt to various situations, the furniture industry can continue to grow and contribute optimally to both the global and local economies. So, keep calm and furnish on!