The higher aesthetic value, monetary value, and durability of wood makes it the most preferred material in the luxury furniture market, compared to other materials such as metal, glass and leather.
The research firm predicts that the global market is poised to see newer heights in the coming years as the number of high net worth individuals is increasing. Furthermore, the mushrooming real estate industry and improving disposable incomes in developing countries are also likely to propel market growth in the near future.
The market’s progress will also be a result of the emergence of the various distribution channels, especially e-commerce. The convenience of shopping and making payments has surely made a positive difference to the revenue of the global market.
Rapid urbanisation and increasing disposable incomes have been extremely important for the soaring profits of the global market. In the coming years, growing number of commercial spaces such as restaurants, hotels, and clubs are likely to be key end users of luxury furniture items as they persistently try to create luxurious experience for the customer.
Entry of various designers, focus on providing an opulent lifestyle choice to the end user, and a higher awareness about the artistic value of the luxury furniture have also been identified as the important growth drivers for the global market.
Geographically, the global luxury furniture market is segmented into Europe, Asia Pacific, Latin America, Western and Eastern Europe, Asia Pacific, Japan, and the Middle East and Africa. Of these, Europe is anticipated to the lead the pack, registering a steady CAGR of 5.1 percent over the forecast period.
On the other hand, China is projected to be the key player in the Asia Pacific region due to growing urbanisation and improving disposable incomes. The hospitality sector of the Middle East has been identified as a region that will provide the global market many lucrative opportunities in the near future.
Research and Markets offered similar views, adding that the market for wood furniture is expected to grow at a CAGR of 3.8 percent till 2022 as designing things on wood is easy and wood is a natural and easily available raw material around the world.
In Germany, the Association of the German Furniture Industry (VDM) reported a growth in furniture export from the country, but that could not offset the decrease in domestic furniture sales, resulting in further decline in the total turnover of the country’s furniture industry in the last quarter of 2017.