Green Building Initiatives to Drive Eco-Friendly Furniture Market to a Positive 6% Growth through 2030, Infers Fact.MR Study
Published : 17 Apr 2020 Industry: Consumer Goods
Modernization and incorporation of sustainable residential furniture in developing countries such as Indonesia, India, and China is set to drive sales of eco-friendly furniture. The global eco-friendly furniture market will grow 1.8X during the projection period (2020- 2030). Advancements in material science that increases product durability and recyclability are primary reasons for consumer adoption of eco-friendly furniture. Innovative business strategies such as circular business models using reclaimed wood provide the much needed strength for healthy growth of the market. Market players are leveraging industrial automation to increase production. Prevalence of e-commerce in developing countries presents gainful opportunities for eco-friendly furniture manufacturers.
Key Takeaways of Eco-friendly Furniture Market Study
- Residential applications of eco-friendly furniture hold share-wide dominance with over 66% of the total market value. Consumer trends that focus on buying eco-friendly products, coupled with strong social media presence of market players drive demand from this application segment.
- Commercial applications is the highest growth application segment with a strong 7% CAGR through 2030. Corporate Social Responsibility initiatives to reduce the carbon footprint of offices contribute to the growth of eco-friendly furniture in commercial settings.
- Offline distribution channels account for the largest market value share with over 69% of total revenues. This can be attributed to the efficacy and effectiveness of physical representation in furniture buying decisions. Brands such as IKEA are an ideal example of the prominence of offline distribution channels.
- Digitization of economies across the globe is enhancing the reach of organizations. Hence, online distribution channels offer the most attractive revenues prospects with an impressive 7.5% CAGR from 2020 to 2030.
- Europe accounts for a big part of global sales with more than 35% share of the total market value. Emphasis on sustainable manufacturing and awareness regarding harmful effects of indoor volatile organic compounds are a few factors that drive growth in this region.
- South Asia & Oceania are catapultin the global eco-friendly furniture market with an astounding 8.6% CAGR during the forecast period. Investments in urban infrastructure development in Indonesia, Singapore, and Malaysia are central to growth of the eco-friendly furniture market.
Online Distribution Channels to Bolster Growth amid Covid-19 Pandemic
Advancements in material science to develop luxury eco-friendly furniture is a top demand driver for manufacturers. For instance, Shagreen when paired with treated glass forged from brass and brushed gold is gaining traction among consumers. Green building initiatives across the globe drive capacity expansion initiatives in strategic areas. Statutory certifications such as FSC certifications are helping manufacturers differentiate their product offerings. In a highly competitive landscape, creative digital marketing and e-commerce distributions channels offer a competitive edge to eco-friendly furniture organizations.
Further, with the world battling covid-19, consumer spending on e-commerce is expected to significantly contribute to future growth of the market. Since social distancing is being widely practiced, market players stand to realize sustainable growth from online distribution channels. Tracking the recovery of countries such as the US, and China will influence the speed of financial recovery among market players. Eco-friendly furniture manufacturers are devising contingency and recovery plans that present supply chain alternatives.
Find More Valuable Insights on Eco-friendly Furniture Market
Fact.MR, in its new offering, brings to fore an unbiased analysis of the eco-friendly furniture market, presenting historical demand data (2015-2019) and forecast statistics for the period 2020-2030. The study divulges compelling insights on the eco-friendly furniture market on the basis of applications (residential and commercial), distribution channels (online and offline), and across six major regions (North America, Latin America, Europe, East Asia, South Asia & Oceania, and Middle East & Africa).
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About the Retail and Consumer Goods Division at Fact.MR
Being a consortium of a large number of sub-industries, not many market research companies are able to fulfil the requirements of consumer product clients. Though, Fact.MR retail and consumer goods analysts at Fact.MR have been categorically tracking the broader sub-industries to keep themselves abreast of the recent happenings in the market. Our practical approach to product design and pricing strategy contributes to the growth of businesses that are struggling to hit the ‘move-the-needle’ bottom line. With unmatched analytical diligence, the team at Fact.MR helps organizations design product differentiation strategies and introduce exclusive product(s) to their existing portfolio. For more consumer goods domain expertise, visit here.