Upholstered Furniture Market Size, Share & Industry Analysis, By Type (Sofas and chairs, Beds and Mattresses, Others), By End-use (Households/Residentials, Commercials), By Distribution Channel (Offline retail, Online retail) And Regional Forecast, 2024-2032

Upholstery has gained a broad presence in the global furniture market in the modern world. It is described as a craft used for covering works on seating and chairs for soft furniture, including the fixed fabric. Apart from providing smooth fabric covers over the seating surfaces, it is also used to support the furniture through springs and coils. Modern manufacturers have innovated home furnishings and introduced upholstered furniture with wide varieties of shapes, sizes, and aesthetic appeal with pure craftsmanship. The materials include cotton, linen, silk, polyester, and leather used in crafting an upholstered fabric, and the product is often lightweight and has the property of resilience. The growth in the purchasing power of the consumers and improvements in the standard of living has raised a substantial demand for upholstered furniture. Consumers prefer stylish comfort and luxury in their residential spaces, which has created enormous growth opportunities for the segment's growth over the past years.

The rapid urbanization and advancements in lifestyle have created numerous growth opportunities for the real estate industry, which is expected to boom in the forthcoming years. Expected growth in the number of housings in towns and cities will increase the demand for home furnishings, including upholstered furniture. It has also witnessed significant growth due to the increasing demand for office and commercial spaces, including hotels and restaurants. For instance, India's real estate sector is contributing 6-7 percent to the country's total Gross Domestic Product (GDP), the real estate sector in India is expected to reach a market size of $ 1 trillion by 2030 and contribute 13% to the country's GDP by 2025, according to India Brand Equity Foundation (IBEF) report. Moreover, The upholstered furniture industry is expected to boom in the upcoming years with home modernization and lifestyle trends due to its comfort factor. Upholstery furniture such as dining chairs, sofas, couches, and lounges finds wide usage across residential and commercial spaces. It gives a distinctive appeal because of its versatile nature and long-lasting quality.

The manufacturing and production of upholstered furniture products require skillful laborers to deliver craftsmanship and add a finishing touch. Due to the absence of skilled laborers, the production process gets hampered, which restrains the market growth.

Key Market Driver -

The growth in the real estate industry has created significant growth opportunities for the upholstered furniture market.

Key Market Restraint -

Lack of skilled labor for production hinders the demand for upholstered furniture

Key players covered:

Rowe Furniture, American Manufacturing Furniture, Inc., IKEA, Norwalk Furniture, Delta Furniture, Craftmaster Furniture, Hughes Furniture, and Century furniture are significant players in the market.

The global upholstered furniture market is segmented based on type, end-use, distribution channel, and geography.

By type, the market is segmented into sofas and chairs, beds and mattresses, and others. The chairs and sofas segment is expected to witness substantial growth in the forecast period because of the increasing trend for flexible and modular furniture options. The sofas come in a range of designs such as Corner shaped, U-shaped, and chaise sofas with tailored designs and clean lines that provide an unmatched beauty to the interior spaces of households as well as commercial spaces. These sofas and chairs offer luxury and comfort for the users to spend time on various activities such as napping, reading, lounging, or watching a movie. With exquisite leather and plush fabric furnishings and contemporary finishes, the U-shaped and the Corner-shaped sofas find greater adoption in households. They are expected to uplift the segmental growth further.

By application, the market is segmented into residential and commercial.  The residential sector is estimated to foresee significant growth in the market in the upcoming period, which can be attributed to the growing number of modernized homes and buildings and an increase in the purchasing power of consumers. The upholstered furniture is a perfect accessory for home décor and acts as an ideal living room and outdoor seating space. The upholstered furniture, such as comfy sofas and chairs, can be converted into a bed for sleeping and lounging in households. These products are often compact and accommodate three or four people with comfort. Because of their cozy appeal, it elevates greater demand across households.

Based on the distribution channel, the market is segmented offline and online. The offline segment is anticipated to hold lucrative growth opportunities in the market owing to a higher preference among users towards specialty and branded retail outlets. It allows the consumers to a first-hand look at the products, which helps ensure the quality and specifications and create an impression towards it. Moreover, the supermarkets and the furniture stores stock up several furniture items under one roof, making it convenient for the users to buy accordingly. Also, the in-store demonstrations about the products by sales specialists often create a great engagement for the customers to make a purchase decision which can positively influence the segment's growth.

Regional Analysis:

By geography, the global upholstered furniture market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The North American region is anticipated to hold a dominant share in the market in the forecast period 2021-2028. The growth is attributable to the increased construction spending from high-end consumers and rising demand for home décor. The market exhibits a strong pull from strong distribution channels catering to a broader consumer base across the region. The increase in residential innovation and the rise in disposable income of the consumers have triggered the demand for such products. The industry manufacturers pose a high level of integration, with major manufacturers involved in processing raw materials. Major manufacturers in the North American region include Ashley Furniture Industries, Inter IKEA Group, American Furniture Installation, etc. Canada and Mexico are considered to be the major export markets for U.S. manufacturers. For instance, in September 2018, U.S based 'The Home Depot' has announced express delivery service across 35 markets in the U.S. The move was aimed at strengthening its service portfolio.

The Asia Pacific market is also projected to grow significantly in the forecast period 2021-2028. The positive impact on the demand of the upholstered furniture market is due to the low production cost of raw materials such as synthetic fibers and polymers and the broad presence of small and large-scale manufacturers across the region. According to a World Bank study, the furniture industry is projected to grow by 20 % every year. Moreover, a significant part of this growth is likely to come from Asia's rapidly growing consumer markets, implying a considerable increase in the Indian furniture sector. Furthermore, strong suppliers and distribution channels in this region have positively influenced regional growth. The Indian furniture industry is likely to transform into a more organized and competitive sector in the coming years with the entry of global players in the market and the emergence of prominent retail players. Furthermore, there is an abundant supply of raw materials and labor for processing final products.

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Segmentation

Key Industry Developments:

• In August 2018, IKEA aims to acquire 20% share of India's organised furniture market by opening 50 stores in the country. The company may invest up to $2 billion to set up brick and mortar stores, e-retail platform and other infrastructure in the country.


• In April 2019, Century Furniture proudly unveiled the highly anticipated Carrier and Company Collection during the High Point International Furniture Market. With over fifty designs, the collection includes bedroom, dining, and occasional as well as a range of upholstery with an uplifting mix of scale, materials and finishes.