Small Space Furniture: Market Overview
In today’s world, small space living has emerged as the new normal. As urbanization gathers momentum, the need for urban housing is surging rapidly. By 2050, over 6 billion people will reside in urban dwelling, with a major chunk of this population being concentrated in cities across the developing world.
Against this backdrop, the nature of housing is bound to undergo a metamorphosis. The trend of studio apartments and small-sized houses is already widespread in countries such as Japan and Singapore.
Consequently, the demand for small-space furniture has witnessed a major upsurge and will remain on a high pedestal during the 2020-2030 forecast.Small-space furniture is manufactured using a range of materials such as glass, wood, leather and plastic.
Most of this furniture is portable, thus making it easier to accommodate more space for navigation and movement within the house. Going further, small space furniture is also touted as a frontrunner of sustainable living.
Small space furniture typically include foldable beds, retractable and mounted tables, island kitchens, ottomans, foldable kitchens, compact coffee tables, wardrobes, portable book shelves and expanding tables to name a few.
Small Spaces Necessitate Smart Solutions- Credible Developments Underway to Design Smart Small Space Furniture
As apartment sizes shrink, the nature of furniture demanded is also shrinking. As a result, manufacturers are increasingly seeking to introduce solutions to address the problem of small spaces. Therefore, the concept of multifunctional furniture and transformable rooms have acquired precedence.
For instance, a table and chair can serve a dual function of offering seating while working or dining. When not using them, these tables and chairs can serve as a bookshelf or storage drawers as well.
With respect to transformable rooms, arrangements such as convertible beds and sofa are becoming increasingly common.
Also, modular couches are becoming highly popular. As space constraints increase, high demand for flexible furniture has bolstered demand for portable sofas, beds and dining furniture.
These add a high degree of versatility, permitting individuals to alter the room layout for different purposes. They also come in different designs, appealing to consumers’ aesthetic indulgences.
Wooden Furniture to Hold Sway across the Forecast Period, Steel Furniture Remains Most Preferred Option
Wood is anticipated to acquire major traction, generating substantial revenue throughout the upcoming decade’s forecast. Wooden furniture is extremely durable, requires minimum maintenance and prevents undesired deterioration through rot and decay.
They do so by secreting natural oils as effective barriers against external agents. Moreover, they impart antiquity to the house.However, steel furniture is anticipated to remain the dominant choice in terms of small space furniture material. High corrosion resistance and robustness are the key drivers behind its surging popularity.
Additionally, it imparts a modern outlook to the home environment. It is also very environmentally friendly as steel can be easily recycled.
Demand for Residential-Grade Small Space Furniture to Upsurge
As rent prices are skyrocketing, people, especially millennials, are seeking inexpensive accommodation facilities. This often involves compromising on the living space, which compels them to seek smaller houses.
Against this backdrop, sales of small space furniture are expanding manifold since the past few years. This has accelerated sales of smart furniture as well.
Expansion is also underway across the commercial sector. Just like residences, offices, hotels, restaurants and other commercial settings are becoming increasingly remote.
This is happening in order to reduce overhead costs in terms of rent and maintenance. Rising demand for more office space is expected to bode well for the commercial segment.
E-commerce to Emerge as the Frontrunner in Small Space Furniture Marketing
Offline sales channels have largely dominated the furniture landscape, with consumer preferring to visit specialized furniture stores. These stores enable consumers to experience first-hand the quality and feel of the different materials used in constructing them.
Moreover, effective after-sales services are attracting more buyers, thus heightening their revenue prospects.However, with the proliferation of the internet, consumers are becoming digitally empowered. Access to smartphones and other hardware devices make shopping easier, leading to a major tilt in consumer purchasing behavior.
This has prompted manufacturers to open their own online portals or partner with leading retail platforms to remain afloat in the market.
Asia-Pacific to Emerge as the Kingpin of the Global Small Space Furniture Market
The Asia-Pacific region is home to 3/5th of the global population, around 4.3 billion people. Most of them reside in China and India. By 2050, this number is forecast to climb to 5 billion. Consequently, the demand for housing and construction is bound to accelerate, pushing up demand for household furniture.
With such a large population base, small-space living is acquiring significant ground. People prefer to reside in studio apartments or two-bedroom flats. Owing to the space constraints, investments in small-space furniture such as foldable beds and multi-purpose tables have gathered momentum in this region.
Recognizing this trend, governments are relaxing business laws and regulations, thus enabling major market players to establish their operations across the continent.
They are endowed with several tax incentives and favorable reimbursement policies, leading to increased output and high profit margins. Thus, the Asia-Pacific region is expected to register impressive growth in the coming years.
With respect to commercial grade furniture, Europe is anticipated to hold major sway, due to heightened tourism which in turn is driving the hospitality sector, thereby creating demand for small space furniture in hotels and resorts.
Also, the presence of leading manufacturers across France, Germany and Italy will generate major revenue pools, being primary export hubs.
COVID-19 Accelerates Online Furniture Sales, Conventional Retailing Witnesses Drastic Dip
The novel coronavirus pandemic has adversely impacted the global economy, forcing businesses to enter into a hiatus for an indefinite time period. As governments continue to impose restrictions, the global small space furniture market is headed towards a prolonged depression. A resurgence is not anticipated anytime soon.
With calls for maintaining social distancing, visits to furniture stores has dramatically fallen, leading to a dip in sales. This has majorly affected revenue inflow and disrupted profit margins of prominent players, as they are left with unsold inventory in their retail outlets. This is forcing them to incur depreciation costs.
Fortunately, manufacturers have found a way around this and have been working to effectively leverage online retailing platforms. Prominent manufacturers are forging partnerships with Amazon, Flipkart, Alibaba and e-Bay to market their products.
Additionally, they are contributing their revenue toward eliminating the pandemic. For this, they have set up relief funds to assist frontline health workers.
Thus, a V-shaped growth trajectory is anticipated for the market. The slump will exist at least until the latter half of 2021, after which growth prospects will gradually improve. A full recovery is only possible when a proper vaccination or drug is introduced in the market.
Global Small Space Furniture Market- Competitive Landscape
The global small space furniture market is characterized by the presence of multiple players, rendering is highly competitive in nature. Some prominent players include IKEA, Walmart, Target Corporation, Crate & Barrel, HomeLane, Godrej Interio, Apt 2B, Joss & Main and Wooden Street among others.
These players are investing in providing small space solutions across different geographical regions. For instance, IKEA offers its kitchen island solution, comprising of four cabinets measuring 30 cm and 80 cm respectively, a custom-cut work top and a rolling trolley. This ensures that users have an enjoyable working experience as well as save space.
The company also offers smart bathroom-cum-laundry solutions in the form of stackable SORTERA bins and an adjustable drying rack in the shower or above the bathtub, thus eliminating the need to acquire a separate laundry spot. Other solutions involve a walk-in closet within a bedroom and an all-purpose living room.
On a similar plane, HomeLane offers the Kivaha 4-seater, Cayman and Altura coffee table sets which consist of compact seating stools which can easily fit under the table when not in use. The company also manufactures the Blaine wall mounted dining table, the Kowloon sofa cum bed and the Travis sofa cum bead.
Companies are also concentrating on forging collaborations with players from other verticals to offer diverse products to consumers. For instance, IKEA partnered with Adidas Group in 2018 to introduce a sports based home décor products line.
Market players are also leveraging the trend of environmental sustainability to manufacture low-cost eco-friendly products by avoiding the usage of toxic chemicals during the manufacturing process. For instance, Cisco Home offers eco-friendly seating, bedroom and lighting accessories and are FSC-certified.
Small Space Furniture Market- Prominent Players
- Crate & Barrel
- Wooden Street
- West Elm
- Godrej Interio
- Resource Furniture
- Pottery Barn
- Ethan Allen
- Design Within Reach
- Apt 2B
- Joss & Main
- Urban Outfitters
- Target Corporation
- North America (US & Canada)
- Latin America (Brazil, Mexico & Rest of Latin America)
- Europe (EU-5, Russia, Poland & Rest of Europe)
- Asia-Pacific (China, Japan, India, Singapore, South Korea, Australia, New Zealand & Rest of APAC)
- Middle East & Africa (GCC, Northern Africa, South Africa & Rest of MEA)
- The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
- The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
- The report also maps the qualitative impact of various market factors on market segments and geographies.
Small Space Furniture Market- Segmental Analysis
By Furniture Type
- Living Room
By Distribution Channel
- Offline Channels
- Online Channels
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