Asia-Pacific Luxury Furniture Market Size

APAC Luxury Furniture Market Analysis

The Asia-Pacific Luxury Furniture Market size is estimated at USD 30.11 billion in 2024, and is expected to reach USD 37.62 billion by 2029, growing at a CAGR of 4.55% during the forecast period (2024-2029).

Furniture is required to decorate the interiors and exteriors of homes, hotels, and offices. The quality of material used, aesthetic value, comparative price, and sophistication in design are some of the key factors that differentiate luxury furniture from non-luxury furniture. Expert and inventive craftsmen use high-quality materials like metal, wood, glass, plastic, and leather to create luxury furniture.These luxury furnishings are designed with zero margin of error, thereby prolonging their durability.

Because of the COVID-19 outbreak, supply chains were messed up, there was a shortage of materials, and contracts were canceled to keep costs down.The lack of labor is also hampering the overall expansion of the luxury furniture market, particularly in countries including India, China, and Japan. The outbreak of the COVID-19 pandemic acted as a massive restraint on the luxury furniture manufacturing market in the Asia-Pacific region in 2020. This may slow down the industry's growth during the forecast timeframe. Sales dropped by almost 70% as consumers had little opportunity to explore luxury furniture products. Major luxury furniture production happens in Italy, and all the Italian factories, including small and family-based fabriqueries, have temporarily shut down, which resulted in a decline in sales in the market.

Asia-Pacific consumers have had more money to spend because the economies of different countries in the region have been slowly but steadily getting better.This high disposable income and inclination of consumers toward luxury furniture fuel market growth. The growing popularity of luxury indoor furniture, such as bedrooms, bathrooms, kitchens, and other types of furniture, is likely to augment the sales of luxury furniture in the domestic segment.

The market is witnessing an increase in demand for luxury furniture made from premium woods such as mahogany and alder. Also, the real estate and construction industries are expected to grow substantially in this region. In addition to this, urbanization and the improving lifestyles of individuals are some of the important factors responsible for the prominent growth of the Asia-Pacific luxury furniture market. Moreover, the rise in the need to manufacture eco-friendly luxury furniture is expected to offer lucrative opportunities for market expansion in the forthcoming years. However, factors such as the increasing cost of raw materials, specifically wood and leather, would limit the Asia-Pacific luxury furniture market's growth.