Asia-Pacific Luxury Furniture Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Luxury Furniture Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia-Pacific luxury furniture market's sales are stimulated by a combination of positive factors, and it is expected to register a CAGR of more than 6% during the forecast period 2021-2026.

The COVID-19 outbreak has disrupted supply chains, caused a shortage of materials, and terminated contracts to control expenses. The lack of labor is also hampering the overall luxury furniture market expansion, particularly in countries including India, China, and Japan. The outbreak of the COVID-19 pandemic acted as a massive restraint on the luxury furniture manufacturing market in the Asia-Pacific region in 2020. This may slow down the industry growth during the forecast timeframe. Sales dropped by almost 70%, as consumers had little opportunity to explore luxury furniture products. Major luxury furniture production happens in Italy, and all the Italian factories, including small and family-based façonniers, have temporarily shut down, which resulted in a decline in sales in the market.

Furniture is required to decor the interiors and exteriors in homes, hotels, and offices. The quality of material used, aesthetic value, comparative price, and sophistication in design are some of the key factors that differentiate luxury furniture from non-luxury furniture. Luxury furniture is manufactured by skilled and creative craftsmen using superior quality materials such as metal, wood, glass, plastic, and leather. These luxury furnishings are designed with zero margin error, thereby prolonging their durability. Consumers in Asia-Pacific have witnessed an increase in disposable income due to the slow but steady improvement in economic conditions of various countries in the Asia-Pacific region. This high disposable income and inclination of consumers toward luxury furniture fuel the market growth. The growing popularity of luxury indoor furniture, such as bedroom, bathroom, kitchen, and other types of furniture, is likely to augment the sales of luxury furniture in the domestic segment. The market is witnessing an increase in demand for luxury furniture made from premium wood such as mahogany and alder. Also, the real estate and construction industry is expected to grow substantially in this region. In addition to this, urbanization and improving lifestyles of individuals are some of the important factors responsible for the prominent growth of the Asia-Pacific luxury furniture market. Moreover, the rise in the need to manufacture eco-friendly luxury furniture is expected to offer lucrative opportunities for market expansion in the forthcoming years. However, factors such as the increasing cost of raw materials, specifically that of wood and leather, would limit the Asia-Pacific luxury furniture market's growth.

Key Market TrendsGrowing Demand for Luxury Home Furniture Products through E-commerce

Increasing internet penetration, growing disposable income, digitalization, and developing economies are the major factors to boost online commerce in the Asia-pacific region. Online luxury furniture sales are expected to see an upward growth worldwide, and the Asia-Pacific region is also witnessing a surge in online sales of luxury furniture products. For instance, in the Asia-Pacific region, countries, like India and China, are counted as the biggest e-market for furniture purchased online, and these numbers are expected to increase further in coming years. Key benefits of online retailing are increased choice and a higher level of personalization which may stimulate the purchase decisions of customers. The rising digitalization of luxury furniture and interior shopping offers immense potential to retailers, and many players such as IKEA and Amazon are investing heavily to increase their online presence in household e-commerce.

The Residential Segment in the Asia-Pacific Region is Driving the Market

Developing economies, growing disposable income, and the focus on aesthetics and urban lifestyles are further leading to higher usage of high-end furniture products. Rapid urbanization and industrialization across the region and the rising permeation of online retailing in developing countries manipulate customers to acquire luxury furniture. An increase in the awareness of modern lifestyle and the demand for eco-friendly furniture are expected to boost the market growth. Urbanization is enhancing the growth of the market, with all major countries and developing countries across the region witnessing a rise in their urban population, which fuels the demand for premium products like luxury furniture. The installation of luxury furniture can improve a home’s appearance and boost its value. Luxury furniture made from wood and metal is gaining popularity among consumers due to its high aesthetic value and durability. The rise in eco-friendly and multifunctional luxury furniture is also supporting market growth in developed economies. Residential remodeling and replacement may continue to account for luxury furniture demand, as homeowners replace older furniture with newer products that offer enhanced visuals.

Competitive Landscape

The report covers major international players operating in the Asia-Pacific luxury furniture market. In terms of market share, a few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Shanghai JL&C Furniture Co. Ltd
PT. Wirasindo Santakarya
McMichael Furniture
IKEA
Kovacs Design Furniture
De Bruin
Judge Furniture Ltd (DBJ)
Dynamic Furniture Industries (M) Sdn Bhd
Far East Furniture
Falcon Incorporation PTE Ltd
Shanghai Casagi Furniture Ltd
Wegmans Furniture Industries Sdn Bhd

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