South Africa Furniture Market Size, Share & COVID-19 Impact Analysis, By Product Type (Living Room & Lounge Furniture, Bedroom Furniture, Dining Room Furniture, Kitchen Furniture, and Others), By Material (Wood, Metal, Plastic, and Others), By Category (Indoor and Outdoor), By End-user (Residential, Office, Hotel, and Others), and By Distribution Channel (Specialty Store, Online/E-Commerce, and Others), and Country Forecast, 2023-2030

The South Africa furniture market size was valued at USD 2.31 billion in 2022 and is projected to grow from USD 2.38 billion in 2023 to USD 3.26 billion by 2030, exhibiting a CAGR of 4.56% during the forecast period.

Furniture serves a variety of functional and aesthetic purposes in consumer’s daily life and has a wide application in both residential and commercial places. It is designed to serve specific purposes. For instance, a dining table and chairs are functional for eating, while a desk and chair are essential for work and study. Besides, many types of furniture, such as cabinets, dressers, and shelves, offer storage space to help keep living and working spaces organized. The South Africa furniture market growth is mainly driven by the accelerating demand for sustainable home furnishing products, along with the rising trend for customized furniture products in the country. Consumers in South Africa have been showing an increased interest in products made from renewable materials, following eco-friendly business practices.  Furthermore, minimalistic and functional furniture designs have also gained popularity for the market growth. People are looking for furniture pieces that are both aesthetically pleasing and practical, especially in smaller living spaces. Therefore, customers in South Africa are opting for unique and personalized furniture pieces that suit their preferences and spaces, fostering the overall market share.

COVID-19 IMPACT

Short-run Disruptions and Changes in Consumer Demand Pattern to Restrain Market Growth

The COVID-19 significantly impacted the furniture business in South Africa, with both short-term disruptions and long-term changes in consumer behavior. During the strict lockdown periods, furniture manufacturing and distribution in the country were either halted or severely limited. This led to delays in production and shortages of raw materials and finished products, impacting the ability of businesses to meet consumer demand. Moreover, non-essential retail stores, including furniture showrooms and stores, were forced to close during lockdowns. This resulted in a significant loss of revenue for furniture retailers and limited consumers’ ability to physically shop for furniture. This has, in turn, lowered the demand of furniture in the country and thus impacted the overall growth of the South African market during 2020. For instance, according to the data published by Stats SA, trading activities of various businesses, including construction, real estate, manufacturing, and others, were severely affected in South Africa due to the spread of COVID-19 in 2020. The South African government implemented several lockdown measures, including the closure of non-essential businesses and restrictions on movement, impacting the market growth in 2020.

LATEST TRENDS

Rapid Urbanization in South Africa to Boost Market Growth

Urbanization involves the movement of people from rural to urban areas, leading to a higher concentration of population in cities and towns. Therefore, as more people live in urban spaces, there is a greater demand for housing and furnishing, including furniture, augmenting the market's growth. Moreover, urbanization often leads to increased construction and real estate development to accommodate the growing population in several open areas. It results in the undertaking of new housing projects and apartment complexes, which drives up the demand for furniture to equip these newly constructed living spaces. For instance, according to the data published by the United Nations Human Settlements Programme in April 2020, the urban population in South Africa reached 67% and is expected to reach 80% by 2050.

DRIVING FACTORS

Increasing Trend for Sustainable Products to Propel Market Growth

The furniture industry in South Africa has been showing an increasing interest in sustainability and adopting sustainable practices to address environmental and social challenges. Therefore, furniture manufacturers aim to source and use recycled materials such as FSC (Forest Stewardship Council) certified wood, reclaimed wood, or bamboo, which have a lower environmental impact compared to traditional hardwoods. Encouraging recycling and reducing waste in the production process can minimize the amount of material sent to landfills and help conserve resources. Hence, using eco-friendly finishes, adhesives, and paints can help decrease the emission of harmful chemicals and Volatile Organic Compounds (VOCs). This, as a result, increases the demand for wood-based furniture, profiling market growth. For instance, in December 2019, Statistics South Africa (Stats SA) launched a new online data portal at the ISIbalo House in Pretoria to enable tracking of the SDGs. As a provider of official national statistics, Stats SA is constantly working to find new and imaginative ways to make data accessible to stakeholders, governments, and the public.

Accelerating Furniture Product Innovation to Expand Market Growth

The economic growth of the South Africa furniture market is also driven by innovation and technical enhancements, which decrease the costs of manufacturing furniture products, enabling higher output. Expanding product innovation in the market can be a key strategy for furniture manufacturers to stay competitive, attract more customers, and increase their market share in the long run. In addition, it also allows companies to explore new and sustainable materials for furniture production. Innovation in materials can lead to more durable, eco-friendly, and visually appealing furniture pieces, thereby creating profitable prospects for the overall market. For instance, in February 2023, PG Bison, a South African home furnishing company, launched a range of locally manufactured decorative wood-based furniture products with new designs and colors.

RESTRAINING FACTORS

Fluctuation in the Prices of Raw Materials to Hinder Market Growth

In South Africa, the cost of lumber depends on many factors, including the type of lumber, the size and quality of the lumber, and current market conditions. The most commonly used wood type in South Africa is pine. Pine is a versatile wood that can be used for a variety of purposes, including construction, furniture, and flooring. Therefore, the price fluctuations of these types of woods used in furniture making directly affect the demand for furniture in the country. Besides, changes in forest management practices, climate-related events, and other factors can affect the supply of wood, leading to price variations of intermediated goods. For instance, in October 2022, GreaterGood SA, a magazine company in South Africa, published that the price of pine timber costs from USD 26 to USD 78 per cubic meter, whereas the cost of oak lumber costs up to USD 105 per cubic meter.

SEGMENTATION

By Product Type Analysis

Living Room & Lounge Furniture Segment Growth Driven by Customization Option in Lounge Furniture

Based on product type, the market is divided into living room & lounge furniture, bedroom furniture, dining room furniture, kitchen furniture, and others. The living room & lounge furniture segment is estimated to lead the market during the forecast period. The growing popularity of high-density foam-based cushions and lounges of corner designs among households for maximum seating space requirements is driving product revenues nationwide. In addition, increasing consumer preference for modular lounge suits designed with interchangeable parts to customize furniture as per the seating necessity is favoring the lounge segmental growth.

Bedroom furniture segment has been estimated to be the second largest segment in the overall market. With the rise of remote work and online learning, bedrooms are often used as home offices or study areas. This creates a need for office furniture such as desks, chairs, and storage solutions in bedrooms.

By Material Analysis

Wood Segment Growth Augmented by Increasing Consumption of Wood Products in Households and Commercial Places

By material, the market is divided into wood, metal, plastic, and others. The wood segment holds a major South Africa furniture market share due to the significant consumption of wood furniture among households and public settings in South Africa. In addition, growing households’ preference for locally sourced premium pine & eucalyptus furniture and indigenous hardwoods is accelerating the wood segmental growth. As per the data published by the South African Furniture Initiative (SAFI), as of 2020, wood material accounts for around 70% of the South African furniture manufacturing industry’s material requirements.

On the other side, other material segment (plywood, steel) has been projected as the second largest segment, owing to their wide usage for making decorative furniture products.

By Category Analysis

Indoor Segment Growth Boosted by Rising Home Decoration Trend

By category, the market is segregated into indoor and outdoor. The indoor segment is anticipated to dominate the market during the projected period. The large demand for different kinds of bedroom, living room, and kitchen furniture products among South African households for their regular indoor seating needs mainly results in the indoor segment holding a major market share. In addition, evolving Do-It-Yourself (DIY) home decoration & renovation trends and increasing demand for multi-colored sofas & seating among middle-income South African households are accelerating indoor segmental revenues.

The outdoor segment has also gained popularity in recent years. People are increasingly embracing the idea of outdoor living, using their outdoor spaces as extensions of their homes. This trend has spurred the demand for comfortable and stylish outdoor furniture to create inviting outdoor living areas.

By End-user Analysis

Residential Segment Growth Propelled by Wide Usage of Lounge and Bedding Furniture Products by Households

By end-user, the market is segmented into residential, office, hotel, and others under the end-user segment. The residential segment is anticipated to lead the market during 2023-2030. The increase in the residential infrastructural facilities in South Africa and significant household demand for sophisticated sofa sets, lounge, and bedding products for their daily seating needs result in the residential segment holding a major market share. As per the data published by the Centre for Affordable Housing Financial in Africa (CAHF), a member organization of the South African Local Government Association (SALGA), around 6.7 million South African residential properties made up 71% of the total residential property market value in 2021. As per the same source, residential housing-related transactions in South Africa reached 51,028 in 2020.

The other segment (colleges and schools) is also expected to hold a major share in the overall market during the forecast period. Educational institutions are incorporating technology into the classroom, which requires furniture designed to accommodate devices such as laptops, tablets, and interactive whiteboards. This has led to a shift from traditional fixed desks and chairs to more flexible and versatile furniture that supports different teaching and learning styles.

By Distribution Channel Analysis

Others Segment Growth Boosted by Availability of a Wide Variety of Products

Based on distribution channels, the market is divided into specialty store, online/e-commerce, and others. The others (supermarkets & hypermarkets, convenience stores, wholesale stores, and others) segment is estimated to lead the market throughout the forecast period. Household consumers and commercial furniture clients can better ensure the quality of the furniture while shopping from supermarket retailing shops. This aspect is likely to support the product demand at these stores.  Furthermore, the growing expansion of furniture supermarkets & convenience stores, and wholesale shops offering diverse furniture products is driving these stores’ product sales in the country. For instance, as of December 2021, Woolworths Holdings Limited, a South African supermarket company, increased its retail presence to 299 full-line supermarket stores, 194 food stand stores, and 52 fashion, beauty, and home-only stores nationwide.

The specialty store is the second largest segment in terms of distribution channel. Specialty stores focus on a specific type of furniture, such as vintage, contemporary, or ergonomic office furniture. They often have in-depth knowledge about the materials, designs, and craftsmanship relevant to their niche. This expertise allows them to provide superior customer service and product recommendations.

KEY INDUSTRY PLAYERS

Flourishing E-commerce Sector and Establishments of Furniture E-retailing Portals to Surge Market Growth

The rise of e-commerce and online platforms provided both large and small-scale companies with new avenues to reach customers in every part of the country. This also reduces the barrier to entry for local manufacturers, as this helps them to get access to a broader customer base without the need for a physical store. Also several SMEs have been establishing e-retailing businesses to offer new and innovative products and hence generate more revenue in the near future, hence opening up beneficial business breaks to the South African market. For instance, according to Stats SA, South Africa's online retail market share has grown to 2.8% in 2020, double the percentage in 2018.

LIST OF KEY COMPANIES PROFILED:

• MillerKnoll, Inc.(U.S.)


• OKAMURA CORPORATION (Japan)


• Oppein Home Group Inc. (China)


• Sorelle (South Africa)


• Steelcase Inc. (U.S.)


• Ashley Furniture Industries Inc. (U.S.)


• Inter IKEA Group (U.S.)


• Motani Lounge Pty. Ltd. (U.K.)


• Adamsons Furniture Manufacturers (U.S.)


• Bravo Brands (Pty) Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• June 2023– Herman Miller's brand 'MillerKnoll' launched a new set of furniture products to display at the Fulton Market Design Days in Chicago. This has led the company to increase its brand image in the market of South Africa.


• October 2022 – Ashley, an indoor furniture company, partnered with River Logic, a leading provider of advanced regulatory analytics technology platforms, to implement a technology platform that optimizes network design. The company aims to improve its extended supply chain optimization to the next level through this partnership.


• July 2021 – Ashley, an indoor furniture company, entered the market by introducing a new category, Ashley Baby & Kids. This product launch includes expanding the range of styles and designs, as well as enhancing the visibility of the children's furniture brand in South Africa.


• May 2021 – Herman Miller, a global furniture company, launched an improved new retail website tailored for customers looking for a supported and seamless shopping experience. This has helped the company capture a wider consumer base in South Africa.


• April 2021 – Herman Miller, a global furniture company, launched the 'Post-Pandemic Office Collection' designed to fit the future of work. Through the launch of this collection, the company was able to generate huge revenue from the residential sector. 

REPORT COVERAGE

The market report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and application usage areas. Besides this, the market research report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation