In general, the global furniture market is valued at approximately 640 billion dollars based on data from 2023 and based on the growth rate of between 3.7 % to 5 % (CAGR) the market is expected to reach 920 billion dollars by 2029. The value of the Australian furniture market alone is valued at approximately USD 8 Billion in 2019 and is predicted to be valued at USD 8.78 Billion by 2025.
Among the main drivers for the growth of the industry include favourable economic conditions attributed to rapid urban development, increased demand from the residential sector and also increased demand from the commercial sphere for office furniture.
Non-residential or commercial sectors that have been encouraged via government policies and lower interest on mortgages have also resulted in an environment that is conducive for players in the furniture industry. Another driver that has been overlooked and has played a significant role in pushing furniture demand over the last few years includes the demand for ergonomic furniture such as ergonomic office chairs and tables.
Among the primary players within the Australian home furniture, office furniture and ergonomically designed furniture that are leading the market forward include IKEA, Steelcase Australia, Herman Miller Haworth Australia, Nick Scali and Knoll Inc. among others.
The positive growth tangent of the industry has resulted in these main players in the industry adopting competitive strategies which include ergonomically designed office chairs and office tables, product innovation and even acquisitions that would increase the company’s presence in Australia which is critical towards registering sound returns.
Nick Scali for instance recently moved to acquire specialist UK-based furniture retailer Anglia Home Furnishings Ltd (Fabb Furniture) for £2.00 and subsequently absorbed all debt belonging to Fabb Furniture amounting to about AUD 6.9M.
According to the company’s CEO Anthony Scali, the acquisition of Fabb is an opportunity that will enhance the company’s presence in other countries apart from Australia and New Zealand for the first time. The strategic objective is to gain an instant entry point into the UK’s furniture market with the current 21 store networks established in key locations.
According to a recent report that was published in Businesswire, Melbourne office furniture suppliers are segmented according to not just point of sale and raw materials, but also by product type that ranges from standard home furniture, institutional furniture, office furniture, exclusive custom-designed furniture and ergonomic furniture which has grown steadily due to new policies that has been prioritised by OSHA.
The report also indicates a renewed interest in the wood segment which is dominating the Australian market share of more than 50% and this phenomenon is expected to continue during the forecast period due to the benefits of wood furniture which include durability, cost-effectiveness and ease of maintenance which are elements that are perfect from a marketing perspective.
Both, home furniture and office furniture (especially ergonomic office furniture) is expected to grow faster than other furniture categories which would lead to competitive discount pricing among industry players. The games are about to begin!
