Friday, 6 May 2016

Luxury Furniture Market - Global Industry Analysis, Growth, Trends, Forecast 2024

Global Luxury Furniture Market: Overview

Luxury furniture consists of furniture made from high-quality materials and reputed manufacturing processes. Unlike other highly prized items, luxury items such as luxury furniture may rely on traditional manufacturing processes rather than advanced processes to retain the commercial allure of the traditional processes. This is often accompanied by the manufacturer having a long tradition of producing luxury items, thereby adding to the appeal of the luxury item.

Luxury furniture enhances the aesthetic value of both residential and nonresidential establishments. This is the prime factor driving the demand for luxury furniture. The rising purchasing power of consumers all over the world has helped increase the demand for a wide variety of luxury items; luxury furniture is a major segment of luxury items.

Global Luxury Furniture Market: Drivers

The increasing GDPs of developing countries and the steady economic resurrection seen in developed countries following the recent economic troubles have boosted the demand for luxury furniture as a fashion statement.

In this regard, the global luxury furniture market has been helped significantly by the rapid spread of urbanization in developing Asia Pacific, South American, and Middle Eastern countries. The increasing number of HNWIs in countries such as China, India, Saudi Arabia, Kuwait, and Qatar has also helped augment the demand for luxury furniture.

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The booming global construction industry has also directly aided the growth of the global luxury furniture market. With high number of residential and commercial construction projects springing up all over the world, the global luxury furniture market is expected to experience corresponding growth in demand. Luxury furniture adds to the appeal of residential as well as commercial complexes, making them more inviting for visitors. This has propelled the demand for luxury furniture across the world.

Global Luxury Furniture Market: Restraints and Opportunities

The global luxury furniture market is majorly restrained by the lack of skilled workers in developing regions. Even for multinational giants, exporting expertise can be tough business. The lack of experts in emerging markets such as Asia Pacific and Latin America has thus emerged as a major restraint in the global luxury furniture market.

The rise in the prices of key raw materials required in top-notch manufacturing processes has also hampered the global luxury furniture market. This has been compounded by the restrictions on the use of certain materials, which have been shown to be harmful to the environment. Due to the environmental awareness of the modern consumer, this has emerged as a major restraint in the global luxury furniture market. However, R&D channels in order to make the manufacturing process more cost-efficient and eco-friendly have already been put in place by most luxury furniture giants. This can thus be pointed out as a key opportunity for major players in the global luxury furniture market.

Global Luxury Furniture Market: Geographical Dynamics

Europe has emerged as the largest contributor to the global luxury products market, led by the traditional importance accorded to craftsmanship and luxury products in the region. Asia Pacific is also set to become a dominant force in the global luxury furniture market in the near future. Demand from China, Japan, South Korea, and India is expected to increase rapidly in the coming years, hand in hand with the economic prosperity these countries are expected to witness in the coming years.

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