Eco-friendly Furniture Market (2023 - 2030)

Eco-friendly Furniture Market Summary

In addition, with higher spending capability and improved infrastructure facilities, the need for comfort in the household has boosted the demand for furniture, including eco-friendly ones.

However, the COVID-19 pandemic has impacted the growth of the market. In the wake of the COVID-19 pandemic, customers display increased awareness, concern, and habit-formation behavior toward the environment. Consumers have increased their purchase frequency and are willing to pay more for sustainable products. This shows growing consumer awareness toward sustainability due to covid-19, which continues to favor market growth.

Moreover, the rising adoption of sustainable materials in furniture production to support the environment continues to drive the market. In addition, increasing adoption of eco-friendly housing projects by firms across countries such as Australia, China, Singapore, the U.S., and Canada, owing to client demand as well as the prominence of environmental regulations remain the key drivers of demand for sustainable interiors in the residential sector. This scenario continues to boost the application of environmentally friendly furniture as well as furnishings in the commercial and residential sectors.

Governments around the world continue to promote the construction of green buildings, mainly with the provision of funding and through various other incentives as well. For instance, in October 2021, the U.K. government announced new funding of 440 million pounds for green construction projects as part of a much larger net zero announcement. Incentives for achieving green building certifications are also provided by other countries. The U.S., for instance, has state incentive programs for LEED certification.

In addition, increased health risks caused by traditional furniture which releases harmful pollutants such as volatile organic compounds (VOCs) and causes allergies, migraines, and asthma continues to drive demand for eco-friendly interiors. This, in turn, has raised the preference for eco-friendly furniture produced with a minimal amount of chemicals. Therefore, consumers continue the adoption of sustainable furniture products.

With an increasing aim to reduce emissions, the rising prominence of sustainability as a prevalent trend in home design and renovation gains traction in the market. Growing acceptance of eco-friendly workplaces has also added to the growth of the market in the commercial sector. According to EPA, 8.5 million tons of office furniture is dumped into landfills each year. Therefore, there is high availability of sustainable materials to produce various types of furniture such as reclaimed wood, rubberwood, bamboo, rattan, and wicker.

Application Insights

In terms of revenue, residential applications dominated the market with a share of 55.8% in 2022. Rising awareness among consumers towards sustainable production of furniture products has largely influenced the adoption of eco-friendly furniture in residential spaces. Consumer inclination towards selecting furniture for their homes made from recyclable materials that do not harm the environment and society.

Commercial application is expected to register a CAGR of 9.3% from 2023 to 2030. Companies promote an eco-friendly environment in their production, workplaces, and services. Sustainable practices in the workplace are likely to have a positive impact on the employees’ mindset and health, improving their productivity. Moreover, an increase in the number of hotels, restaurants, and cafés practicing sustainability favors the growth of the market.

Distribution Channel Insights

In terms of revenue, the offline segment dominated the market with a share of 65.3% in 2022. Offline stores offer customers the opportunity to experience the look and feel of the furniture in-person, which aids them to select furniture according to their requirements. Retail stores that offer furniture create a demo home or office environment in the store, helping customers visualize furniture in their home or office space. In addition, the product assortment of eco-labeled and certified furniture in the store also helps consumers compare the differences and appeal of the eco-friendly product with traditional furniture.

The online distribution channel is estimated to grow at the fastest CAGR of 9.7% over the forecast period. Rapid digitization continues to accelerate the adoption of online shopping. For instance, according to E-commerce Europe, the internet penetration of EU-27 countries increased from 83% in 2017 to 89% in 2020. In addition, the application of online delivery services by product manufacturers for consumers, with options such as flexible payment options and doorstep delivery is expected to drive the growth of the segment. For instance, online eco-friendly furniture giants such as Inmod; VivaTerra; Amazon.com, Inc.; and Knoll, Inc. provide a large variety of home furnishings about eco-friendly furniture to consumers with post-purchase assistance.

Regional Insights

North America dominated the market with a share of 43.4% in 2022. Consumers are becoming increasingly environmentally aware, which may affect their buying decisions when it comes to residential furniture. For instance, according to IBM’s 2020 report, 80% of North American respondents said that they would want to know the origin of the products, and over 69% of them were ready to pay a premium for recycled products.

Asia Pacific region is expected to witness expansion at a CAGR of 10.5% from 2023 to 2030. Increasing infrastructural activities in developing countries such as China and India have propelled the hospitality sector, particularly hotels and resorts. It helps garner greater attention of consumers towards innovative furnishings and their adoption in everyday life. Moreover, the growing popularity of outdoor furniture such as bamboo chairs, teakwood center tables, and beach beds in residential as well as commercial spaces also furthers demand for eco-friendly furnishings in the region.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Many big players continue to increase their focus on the growing trend of eco-friendly furniture. Players in the market are diversifying the service offering to maintain market share. For instance:

• In June 2022, Vestre opened its ‘world’s most sustainable factory’, The Plus, in Norway. This manufacturing unit will act as a global showcase for sustainability and the highly-efficient manufacturing of eco-friendly furniture.

• In July 2021, Sabai launched an initiative, Repair Don’t Replace, to encourage consumers to repair their sofa, ottoman, loveseat, or sectional for a minor issue with particular components, instead of replacing them. This is to prolong the lifespan of Sabai’s furniture.

Some prominent players in the global eco-friendly furniture market include:

• Vermont Woods Studios

• Cisco Brothers Corporation

• Sabai

• Greenington

• Lee Industries, Inc.

• Williams-Sonoma, Inc.

• La-Z-Boy Inc.

• Vestre

• KING Furniture Pty Ltd

• Maiden Home

• Ashley Furniture Industries, Inc.

• Ethan Allen Global, Inc.

• Roche Bobois

• Inter IKEA Systems B.V.

Eco-friendly Furniture Market