The hospitality furniture market includes all fixtures used for commercial purposes in spaces such as restaurants, hotels, or commercial areas that demand more luxurious furnishings. This market offers furnishings that are significantly different from residential products. They typically resist wear and tear, are longer-lasting and are more durable overall. Still, they are stylish and often elegant, creating a level of sophistication for spaces.
Market Size Explored
The hospitality furniture market exceeded $545.78 billion in 2020. It is expected to grow by 5.4 percent CAGR from 2021 through 2027. IBy 2027 the industry is likely to see 62,496.5 kilotons in volume. That’s a growth rate of 4.8 percent and significantly faster than other markets.
What’s Leading the Growth in the Industry?
Many factors contribute to the growth of the furniture market. That includes the overall growth of residential projects around the world. This industry accounts for various products, including sofas and lounge furniture for hotel rooms, wardrobes for clothing, tables, chairs, and even luxurious beds. It includes everything from dressing tables in penthouse apartments to the furniture used in outdoor dining. Many organizations also seek out customized and themed furniture to fit their spaces, which creates more demand for products year over year.
The growth of smart-city developments along with the construction industry is helping to increase projected growth in the market, considered substantial growth in many areas. By some reports, smart-city projects are likely to interest technology investments by more than $158 billion by 2022.
This type of infrastructure growth is likely to create more demand for furniture in the coming years. Factors such as the economy’s advancement and emerging country growth and development may also play a role in this area.
Key factors that support the growth of the furniture market also include the more demand by consumers within the hospitality area. With increasing disposable income, especially in some urban areas, there is new demand for furniture products to meet demands in hotels, office spaces, and restaurants. The demand for new looks and mix-material styles also fuels growth in this market. Industry leaders continue to make updates to furniture, especially with custom pieces, to accommodate modern trends, which often determines just how sought after these hospitality businesses are by consumers.
The Pandemic’s Impact
It’s important to note that the furniture market’s growth is still somewhat limited as COVID-19 shortages and supply chain backlogs limit success overall. The limited labor market in some areas may also impact the industry if they are unable to produce products to meet consumer demand.
The drop in tourism noted by the hospitality industry in 2020 improved significantly at the end of 2021 and the start of 2022, which may further create improvements for the furniture market in the coming years.
The furniture market looks bright with numerous reasons for projected growth. That’s still an improvement should the slowdowns in the supply chain improve in the coming months to years.