Global Furniture Contract Manufacturing Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Furniture Contract Manufacturing Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Contract manufacturing is when a contract manufacturer enters an agreement with another company to make certain components or products over a specified period of time. Recognized as a form of outsourcing, a contract manufacturer may enter a business agreement with a company to produce parts, components, or whole products for the company to their specifications. The manufactured products are then used by the company in its own manufacturing process or to complete its own products. A furniture contract manufacturer means a company that produces furniture under contract for another company under the label or brand name of that company.

Market Overview:

The latest research study on the global Furniture Contract Manufacturing market finds that the global Furniture Contract Manufacturing market reached a value of USD 175583.25 million in 2022. It’s expected that the market will achieve USD 262028.97 million by 2028, exhibiting a CAGR of 6.9% during the forecast period.

Marketing channel sales will be affected differently

The distribution channel segment is divided into offline and online, the offline segment is dominating the market currently, and due to emergence of COVID-19, the online market witnessed a significant growth in 2020. The COVID-19 Outbreak has led to a decline in offline passenger flow, and the advantages of e-commerce companies have become prominent. During the epidemic prevention and control period, some furniture contract manufacturing enterprises did not carry out internet marketing and promotion for their business, so they encountered great resistance in undertaking business. For enterprises that fail to make good use of network promotion means, there is almost no market development during the epidemic period, and the original offline market development plan is disrupted, and the epidemic will face fierce market homogenization competition, which is expected to have a great impact on the company's business throughout the year.

Affect the normal operation of the industry

The impact of COVID-19 on the furniture contract manufacturing industry will involve all major links and all entities in the industry chain. The company's management efficiency has declined, commuting has been severely hindered, production plans have been severely hindered, network expansion has been delayed, marketing has been delayed, brand adjustments have been forced, market sales have declined, and company and employee revenue have declined. The government has also put forward higher requirements for the production and operation of enterprises. Although various industries around the world are gradually resuming work, production and demand will not pick up rapidly and substantially, and will require a certain recovery period.

Advances in Innovation and technology for furniture

Emerging trends that have a direct impact on the dynamics of the Global furniture contract manufacturing industry include the increasing penetration of new and more sustainable and durable raw materials. Furniture was earlier made of wood, plastic or metal. Manufacturers are now focusing on developing furniture with more stable, sustainable, and durable materials like engineered wood, molded tables, and high-pressure laminates, which is creating a positive outlook for the market. Manufacturers are using new and more sustainable and durable raw materials for furniture production to make tables, chairs, and benches, etc. On account of these factors, the market is expected to experience moderate growth during the forecast period. Advances in innovation and technology for Furniture drive consumption, which is beneficial to the development of the industry.

Fierce competition

With major manufacturers and suppliers in the furniture contract manufacturing industry competing at globally, the intensity of competition within the Furniture contract manufacturing industry has increased. The vendors adopt strategies like price premiums to stay competitive in the market. Meanwhile, the local vendors in developing nations are providing tough competition to the global players based on product pricing. The fierce competition is not conducive to the sustainable development of the industry. At the same time, small companies or small retailers enter the business consequently as venturing into a furniture contract manufacturing business does not require immense capital or investment. However, this leads to the proliferation of sub-standard or duplicate products which then hampers the competitive scenario in the market as established furniture contract manufacturing manufacturers are compelled to lower the price of their products, which ultimately impacts their profit margins and sales volumes. The fierce competition is not conducive to the sustainable development of the industry.

Region Overview:

Europe dominated the Furniture Contract Manufacturing market in 2021, with a market share of 33.57%.

Company Overview

Yotrio Group is one of the major players operating in the Furniture Contract Manufacturing market, holding a share of 0.45% in 2021.

Yotrio Group

Yotrio Group was founded in 1992 and is the world leading manufacturer of outdoor leisure furniture. As a furniture manufacturer integrating design, development, production and sales, Yotrio Group is committed to providing users with quality, comfortable and beautiful new leisure garden experience, so that thousands of families can enjoy a better and more comfortable sunny home life.

Kuka Home

KUKA HOME, a leading home furnishings brand in China, has a global reputation as one of the world largest and most respected furniture manufacturers. With over 6000 brand stores and wholesale customers in 120 countries, KUKA product can be found in millions of homes around the world. KUKA HOME is listed on the Shanghai Stock Exchange.

Segmentation Overview:

By type, Wooden segment accounted for the largest share of market in 2021.

Wooden

Wooden outdoor furniture is lightweight, long lasting, and offers an aesthetic & natural appeal, thereby fueling market revenue. Due to advantages such as superior comfort, eco-friendliness, strength, and aesthetic appeal, wood is one of the most popular material options in furniture, which is widely used for the production of furniture for residential and commercial sectors.

Metal

Metal furniture is a type of furniture that uses metal parts in its construction. There are various types of metal that can be used, such as iron, Carbon steel, aluminium, and stainless steel. Aluminum or stainless steel is a great and popular mental material choice because it is lightweight, easy to clean.

Application Overview:

The market's largest segment by application is the segment Residential, with a market share of 66.75% in 2021.

Residential

Residential use accounted for a large share of market revenue in 2020 because of the higher use of furniture in different areas of the residence and the adoption of luxurious amenities by the builders and architects that ultimately affect the demand for furniture positively. Living & bedroom dominates the rest of segments with respect to revenue generation owing to the presence of consumers that are particular in the purchase of right kind of furniture to give a rich, aesthetic look to their living room. Besides, the growing popularity of luxury indoor furniture such as bedrooms, bathrooms, kitchens, and others is likely to augment the sales of furniture in the residential segment.

Commercial

The hospitality segment is registered the largest share in revenue in commercial usage of furniture and is expected to continue its dominance over the forecast period. In order to provide better servicing experiences to customers, hotels and restaurants install furniture which subsequently impacts market demand significantly. Traditional as well as modern furniture designs are receiving high acceptance thus attributing towards the growth in this segment.

Government

Government segmentation such as the Navy and Department of Defense will turn to furniture contract manufacturers for a comprehensive portfolio of furniture solutions for private and shared offices, lobbies and reception areas, cafes and learning spaces, and more.

Healthcare

Furniture for healthcare is designed specifically to assist staff and ensure the comfort, safety and health of patients, which is extensively used in hospitals and health care centers. Hospital furniture makes up everything other than a hospital bed or treatment table. Hospital furniture includes stretcher trolleys, hospital bed, bed side table, operating table, blood donor chair and many more, fulfilling the need of the patients and caregivers.

Key Companies in the global Furniture Contract Manufacturing market covered in Chapter 3:

HHC Changzhou Corp.
Lii Hen Industries Berhad
Minh Duong Furniture
Xilinmen Furniture
UE Furniture
Gilmore Furniture Inc.
Huisen Household
Yotrio Group
Latitude Tree Holdings Berhad
Zhejiang Henglin Chair Industry
Poh Huat Group
ZOY Home Furnishing
LY Corporation Limited
Kuka Home

In Chapter 4 and Chapter 14.2, on the basis of types, the Furniture Contract Manufacturing market from 2018 to 2029 is primarily split into:

Wooden
Metal
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Furniture Contract Manufacturing market from 2018 to 2029 covers:

Residential
Commercial
Government
Healthcare
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)