Australia Home Furniture Market Report and Forecast 2024-2032

Australia Home Furniture Market Size

The Australia home furniture market value is expected to grow at a CAGR of 3.2% between 2024 and 2032.

Australia Home Furniture Market Growth

The Australia home furniture industry growth is driven by several key factors. The expansion of furniture manufacturers and retail outlets has significantly contributed to increased market revenues, spurred further by rising urbanisation and demand from residential, hospitality, office, and industrial sectors. Moreover, the proliferation of e-commerce and online sales platforms like Pottery Barn and Zanui has transformed the market, offering consumers convenience, choice, and competitive pricing.

The Australia home furniture market dynamics and trends are enhanced by the shift towards digital transactions, which aligns with evolving lifestyle trends and changing consumer preferences that prioritize both functionality and aesthetics. Sustainability considerations have also shaped the market dynamics, with a growing preference for eco-friendly and responsibly sourced furniture.

Leading manufacturers are responding to this trend by adopting eco-conscious practices and materials. Furthermore, the incorporation of advanced technologies in furniture design, including smart and multifunctional pieces, aligns with consumer demand for innovative, connected furnishings, thereby driving the Australia home furniture market demand.

Australia Home Furniture Market Analysis

The favourable economic environment, including rapid urban infrastructure development and government policies, has further boosted furniture demand. Despite challenges like volatile raw material prices, the market remains buoyant due to increasing urban populations and evolving consumer spending patterns. The combination of these factors highlights the strength and potential of growth in the Australia home furniture industry, with an ongoing focus on sustainability, technology integration, and consumer-oriented design.

Australia Home Furniture Industry Outlook

The Australian Bureau of Statistics reports that from March 2016 to March 2024, the total value of residential building work in Australia has shown a fluctuating but generally stable trend, ranging from AUD 21 billion to AUD 25 billion. A significant peak was observed around March 2020, surpassing AUD 24 billion. This surge contributed to the Australia home furniture industry revenue, as newly designed or updated furniture aligns with modern aesthetics, enhancing visual appeal and consistency with contemporary design trends.

According to Master Builders Australia, New South Wales saw approximately 50,000 new dwellings started in 2019, evenly split between detached houses and apartments. By 2021, new dwelling starts escalated to nearly 70,000, primarily due to a significant rise in detached house construction. Projections for 2025 to 2026 indicate that new dwellings will increase to nearly 60,000 by 2026, fuelled by balanced growth in both detached houses and apartments.

Additionally, during the 2020-21 period, residential building work in New South Wales was mainly driven by new detached houses, which represented 46% of the total activity. New apartments and units played a substantial role, making up 38% of the residential construction market. Residential alterations and additions made up the remaining 16%, indicating significant interest in home improvements and renovations, which boosts the Australia home furniture market revenue as the choice of furniture is crucial for enhancing functionality in these updated spaces. Customising or updating furniture can optimise space usage, improve organisation, and adapt to new room layouts.

According to the Australian Bureau of Statistics, the "Proportion of Detached Construction Activity by State" data from March 2022 to December 2022 showed Victoria leading in detached construction activity, accounting for 32% of the total. New South Wales (including ACT) followed with 24%, while Queensland contributed 19%. Western Australia and South Australia reported 13% and 9% respectively, with Tasmania and Northern Territory at the lower end with 3% and 0%. Victoria's dominance corresponded with its 25% share of Australia's population and a significant 29% of HomeBuilder applications. Western Australia and South Australia exhibited notable construction activity relative to their smaller population shares of 11% and 7%, respectively, supported by 16% and 10% of HomeBuilder applications.

Australia’s home furniture market offers a wide variety of styles and options, catering to diverse consumer preferences and needs.

• Established local manufacturers provide high-quality products and contribute to the market's stability and reliability.

• Increasing homeownership rates drive demand for new furniture, supporting the growth of the Australia home furniture market.

Furniture prices can be high due to material and manufacturing costs, potentially limiting affordability for some consumers.

• The market is highly competitive, with numerous domestic and international players, which can pressure profit margins.

• Dependence on global supply chains can lead to disruptions and delays in product availability.

Expanding online sales channels can reach a broader audience and enhance convenience for consumers.

• Increasing demand for eco-friendly and sustainable furniture presents opportunities for the Australia home furniture market differentiation and innovation.

• Rising interest in home renovations and interior design drives demand for new and updated furniture products.

Economic downturns can impact consumer spending and reduce demand for non-essential furniture items.

• Changes in import tariffs and trade policies could affect the cost and availability of foreign-made furniture.

• High competition and market saturation may lead to reduced profit margins and increased marketing costs.

Key Players in the Australia Home Furniture Market and Their Key Initiatives

Lama Furniture

• Launched a new range of lounges featuring premium fabrics to meet the growing demand of the Australia home furniture market.

• Opened a new showroom in Melbourne.

Design Furniture Co Pty Ltd.

• Opened a new showroom in Adelaide, enhancing customer experience.

• Launched a range of customizable modular furniture.

Grazia and Co Pty Ltd.

• Launched the Collaborative Collection, featuring designs from leading Australian architects and designers.

• Opened a flagship showroom in Melbourne.

King Furniture Australia Pty Ltd.

• Launched a sustainable furniture line emphasizing eco-friendly materials.

• Introduced augmented reality (AR) app for customers to visualize furniture to capture the Australia home furniture market opportunities.

Australia Home Furniture Industry Segmentation

“Australia Home Furniture Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Bedroom Furniture

• Lamps and Lighting Furniture

• Living Room and Dining Room Furniture

• Kitchen Furniture

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Speciality Stores

• Online Retail Stores

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Australia Home Furniture Market Share

Wood furniture provides enduring appeal with diverse colours and grain patterns, long-lasting durability suitable for multiple generations, versatile designs for various aesthetics, extensive customization options, eco-friendly features through sustainable sourcing and recyclability, and enhanced ease of use, driving growth in the Australian home furniture industry.

Metal furniture is valued for its exceptional durability and resistance to damage, modern and minimalist designs ideal for small spaces, low maintenance requirements, fire resistance for added safety, and often cost-effective solutions for long-term value, further boosting demand in the Australian home furniture market.

Leading Companies in the Australia Home Furniture Market

Key players in the home furniture market in Australia design, manufacture and offer comfortable, innovative, and sustainable products in the market.

• Lama Furniture

• King Furniture Australia Pty Ltd.

• Design Furniture Co Pty Ltd

• Australian Furniture Makers Pty Ltd

• Grazia and Co Pty Ltd

Key Highlights of the Report

Australia Home Furniture Market Report Snapshots

Australia Home Furniture Market Size

Australia Home Furniture Market Growth

Australia Home Furniture Market Analysis

Australia Home Furniture Market Share

Australia Home Furniture Companies