Eco-Friendly Furniture Market

Eco-friendly Furniture Market to Multiply 1.8X Through 2030, Market to Battle Financial Impact of COVID-19 in Near Term

Increasing emphasis on developing environment friendly infrastructure strengthens the demand for eco-friendly furniture in buildings and residential complexes. The global eco-friendly furniture market will keep generating revenues at a steady 6% CAGR during the forecast period (2020 - 2030).

Stringent government regulations pertaining to carbon emissions is furthering the adoption of eco-friendly furniture in building and construction projects. High disposable income of generation Z and millennial consumers is accelerating the demand for eco-friendly furniture in residential end-uses.

Superior product features such as low volatile organic compounds (VOCs) as eco-friendly alternatives garner a larger consumer base.

Residential Eco-Friendly Furniture to Significantly Enhance Profit Pools

Residential applications of eco-friendly furniture is expanding revenue pools in the market. Consumer awareness about alarming levels of pollution through landfills and dumping grounds is accelerating the demand for recyclable furniture products.

Heightening demand for reduction of carbon emissions and effective waste management systems is driving the adoption of recyclable eco-friendly furniture. Corporates across the globe are realizing the role of office ambience in improving employee productivity and output when coupled with benefits of eco-friendly workplaces in engaging and attracting the right talent from tier-1 business schools.

The commercial segment exhibits the highest growth between the two types of applications, at an impressive 7% CAGR during the forecast period.

High-Growth Opportunities in South Asia & Oceania, Europe Leads Global Sales

Europe emerges as the largest market for eco-friendly furniture, accounting for more than 35% of the total market value. This can be attributed to favorable statutory research, and policies that bolster growth for manufacturers. For instance, a European Respiratory Review cites exposure for indoor VOCs as a major concern for respiratory diseases. Similarly, the Landfill Directive regularly updates waste management laws to reduce pollution effectively.

When coupled with surging demand for eco-friendly alternatives across products and services, the sales of eco-friendly furniture will continue to increase at a healthy pace. East Asia and South Asia & Oceania together account for over 36% of the total market value. South Asia & Oceania offer the most lucrative growth opportunities, exhibiting a stellar 8.6% CAGR between 2020 and 2030.

Multiplying eco-friendly housing projects in countries such as Australia, Indonesia, and Singapore are driving the demand for subsequent installation of eco-friendly furniture. Consumer preference for eco-friendly furniture on the back of, proliferation of e-commerce and rising disposable income of consumers will continue to present remunerative opportunities.

COVID-19 Impact on Eco-friendly Furniture Market

Trade suspension to contain the spread of coronavirus poses constraints to the regular functioning of the eco-friendly furniture market. Import and export across the globe is prioritizing healthcare equipment such as medicines, ventilators, face masks, and sanitizers.

Social distancing practices have slowed offline sales of eco-friendly furniture. However, market players are strategizing recovery plans that leverage the shift towards online shopping post the pandemic.

Enhancing product safety and hygiene will be a competitive strategy to differentiate product offerings. Market players will benefit by leveraging industrial automation technologies to increase production capacity and encourage independent manufacturing practices.

As the global economy recovers from COVID-19, fast recovering countries such as Indonesia, and Singapore will offer remunerative opportunities. For the time being, regular interaction with consumers is a popular marketing strategy. Manufacturers are leveraging social media websites and digital marketing to build gainful consumer relationships.

Circular Business Models to Shape Competition

The eco-friendly furniture market is highly competitive with the presence of many small and medium sized enterprises. Competition is driven by adoption of circular business models by market players. Long loop, clean loop, and cascading loop models are prevalent manufacturing and reproduction methods.

Certifications such as FTC certified wooden frames, and increasing adoption of reclaimed wood in public and private sector furniture products are a few sustainability measures. Companies are leveraging advanced industry 4.0 technologies to enhance production capacities. Penetration of high-potential regions using e-commerce methods of distribution is another factor that drives increased competition.

Global Eco-friendly furniture Market: In-Depth Assessment on Key Segments

The global Eco-friendly furniture market is segmented on the basis of application, distribution channel, and region.

• By Application :

  • Residential
  • Commercial

• By Distribution Channel :

  • Offline
  • Online

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa

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