Australia Furniture Market Size, Share, Trends & Report | 2034

January 3, 2025 olivia_123

Australia Furniture Market Outlook

The Australia furniture market size is experiencing steady growth, bolstered by an increasing demand for innovative, stylish, and functional home furnishings. According to the report by Expert Market Research (EMR), The Australia furniture market size reached USD 2.98 billion in 2024. The market is expected to grow at a CAGR of 3.1% between 2025 and 2034, reaching USD 3.87 billion by 2034.

The Australian furniture market is primarily driven by the continued growth in the real estate sector, rising household spending, and increasing awareness of the importance of aesthetic and functional furniture in both residential and commercial spaces. A significant factor contributing to this growth is the increasing trend of homeownership, as more people invest in their homes and prioritize the improvement of living spaces. Additionally, the popularity of home renovations and DIY projects, influenced by lifestyle trends, is also propelling the demand for furniture. The rapid expansion of e-commerce platforms in the furniture sector has further accelerated the market’s growth, enabling consumers to explore a vast variety of products at their fingertips.

Australia Furniture Market Share

The Australian furniture market is highly segmented, with residential furniture, office furniture, and outdoor furniture being the primary categories. Residential furniture holds the largest share of the market, driven by increased demand from homeowners and renters seeking to enhance their living spaces. Within the residential segment, living room furniture, such as sofas, chairs, and coffee tables, is the most popular category, reflecting the importance of comfort and style in modern Australian homes.

The office furniture segment is also witnessing significant growth, particularly as businesses continue to invest in creating comfortable and productive work environments for their employees. With the rise of hybrid work models and flexible office spaces, demand for ergonomic and multifunctional office furniture has surged, further contributing to the market’s expansion. Additionally, outdoor furniture is gaining popularity due to the country’s favorable climate, with consumers increasingly looking to invest in garden furniture, patio sets, and outdoor lounges to create comfortable outdoor living areas.

Large international brands such as IKEA, Harvey Norman, and Freedom Furniture dominate the market, while smaller and specialized companies continue to thrive by offering unique and customized furniture options. As online shopping becomes more prevalent, many local and international furniture companies have shifted their focus to enhancing their digital presence, offering a seamless online shopping experience. This has allowed brands to reach a wider customer base, particularly in regional and rural areas where access to traditional brick-and-mortar stores may be limited.

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Drivers of Growth

Several factors are driving the growth of the Australian furniture market. One of the key drivers is the ongoing expansion of the real estate sector. As Australia’s population continues to grow, particularly in urban areas, demand for new housing and renovations remains strong. The construction of new homes and the growing trend of homeownership have led to increased demand for residential furniture. Additionally, consumers are increasingly viewing furniture as an investment in their lifestyle, with a growing emphasis on quality and long-lasting products that can complement their living spaces for years to come.

Another significant driver of growth is the rising disposable income among Australian consumers. As the economy stabilizes and disposable incomes increase, more individuals are opting for higher-quality, premium furniture. Consumers are now more willing to spend on furniture that not only enhances their home aesthetic but also promotes comfort and well-being. The growing awareness of the importance of sustainable living and eco-friendly furniture options has further accelerated the demand for responsibly sourced products.

The increasing shift towards e-commerce and digital platforms is also playing a pivotal role in the growth of the Australian furniture market. With more consumers opting for the convenience of online shopping, furniture retailers have expanded their online offerings to cater to the changing preferences. This digital transformation has made it easier for consumers to compare products, read reviews, and make purchases without stepping into a physical store. The rise of direct-to-consumer models and online marketplaces, such as eBay and Amazon, has further expanded the market’s reach, offering a wide range of furniture products at competitive prices.

Australia Furniture Market Trends

A few key trends are currently shaping the Australian furniture market. One of the most notable trends is the increasing demand for sustainable and eco-friendly furniture. Australian consumers are becoming more conscious of the environmental impact of their purchases, and as a result, there is a rising demand for furniture made from sustainable materials such as reclaimed wood, bamboo, and recyclable metals. Many furniture brands are responding by adopting eco-friendly manufacturing practices and offering products that align with the growing trend of sustainability. This includes using environmentally responsible materials, reducing carbon footprints, and ensuring products are recyclable or biodegradable.

Another significant trend is the growing popularity of multifunctional and space-saving furniture, particularly in urban areas where living spaces are becoming smaller. With the rise of apartment living and compact homes, consumers are increasingly seeking out furniture that can serve multiple purposes. This includes items such as convertible sofas, extendable dining tables, and modular shelving units that can be easily customized to suit different needs. The demand for adaptable and flexible furniture solutions is expected to continue as space constraints become more common in Australian households.

The trend of personalizing living spaces through furniture is also on the rise. Consumers are increasingly seeking furniture that reflects their unique tastes and lifestyles, leading to a surge in demand for bespoke and custom-designed pieces. This trend has led to the growth of local artisan furniture makers, who offer unique and handmade items that cater to niche market segments. The popularity of bespoke furniture is expected to continue as consumers place greater emphasis on individual expression and personalization in their home décor.

Additionally, the rise of smart furniture and technology-integrated pieces is another trend that is gaining momentum. Furniture that incorporates technology, such as built-in charging ports, wireless speakers, and integrated lighting, is increasingly appealing to Australian consumers. With the growing use of smart devices in the home, consumers are looking for furniture that enhances their lifestyle and integrates seamlessly with their digital needs.

Australia Furniture Market Segmentation

The market can be divided based on type, store type, ownership, and region.

Market Breakup by Type

Home Furnishing
Furniture

Market Breakup by Store Type

Inclusive Retailers /Dealers
Exclusive /Retail Showrooms

Market Breakup by Ownership

Independent Stores
Retail Chains

Market Breakup by Region

New South Wales
Victoria
Queensland
Australian Capital Territory
Western Australia
Others

Challenges and Opportunities

Despite the optimistic outlook for the Australian furniture market, several challenges remain. One of the main challenges is the rising cost of raw materials, which has led to increased production costs for furniture manufacturers. This, in turn, has put pressure on the pricing strategies of companies, particularly those in the mid-range segment. Rising shipping costs and supply chain disruptions, exacerbated by global trade tensions and the ongoing effects of the COVID-19 pandemic, have further complicated the situation. Manufacturers will need to address these challenges by finding more efficient ways of sourcing materials and optimizing their supply chains to maintain profitability.

Another challenge is the intense competition within the market, particularly from online marketplaces and direct-to-consumer brands. As more consumers turn to e-commerce for their furniture needs, traditional retailers must find ways to adapt to the changing retail landscape. Providing exceptional customer service, creating personalized experiences, and offering competitive pricing will be essential for established furniture brands to maintain their market position. Additionally, the proliferation of online reviews and social media has increased the pressure on brands to deliver high-quality products and maintain a strong reputation.

However, there are several opportunities in the market. The increasing demand for sustainable and eco-friendly furniture presents an opportunity for manufacturers to tap into a growing segment of environmentally conscious consumers. Additionally, the rising popularity of smart furniture offers an opportunity for brands to innovate and integrate technology into their product offerings. The growing trend of remote work and hybrid working models also presents an opportunity for office furniture manufacturers to expand their product lines with ergonomic, stylish, and functional office furniture solutions for home offices.