United States Luxury Furniture Market Size

US Luxury Furniture Market Analysis

The United States Luxury Furniture Market size is estimated at USD 9.69 billion in 2024, and is expected to reach USD 10.71 billion by 2029, growing at a CAGR of 2.02% during the forecast period (2024-2029).

Luxury furniture enhances the aesthetic value of establishments, such as homes, hotels, offices, and other indoor or outdoor areas. The US luxury furniture market significantly benefits from the economic growth of the country. The rise in consumers' spending power and high demand for housing are the primary growth drivers of the luxury furniture market in the United States. Consumers in the region are inclined toward eco-friendly furniture, owing to the increase in environmental awareness. However, a rise in the costs of raw materials, such as wood and leather, may restrain the market growth. Online retailing and an increase in the demand for multifunctional furniture present significant opportunities for the growth of the US luxury furniture market. The demand for handcrafted authenticity, rather than mass-produced pieces is rising in the luxury furniture market and the use of metals in interesting ways is trending with colors turning away from rose gold toward gold, brass, or blackened metals, used in sculptural or massed ways. With real GDP expected to grow by 4.4% overall in 2021 as the trend of economic recovery continues across the United States, it is expected that the home furnishings industry will also witness strong growth in 2021, which will, in turn, give a strong boost to the furniture industry.

The luxury furniture industry has highly suffered the impact of the COVID-19 pandemic. It is expected that the market may take a longer recovery time, based on the concerns expressed by some luxury interior designers and furniture brands. One of the major impacts of COVID-19 on the furniture industry is on the supply chain. To overcome this hurdle, furniture brands need to develop an effective supply chain response plan to mitigate the risks and prepare for any further interruption that the COVID-19 outbreak may cause. The market for luxury experiences, like travel, dining, and entertainment, has grown at a much faster pace than that of luxury goods such as furniture in recent years nonetheless, this all came at a stall in 2020 amidst the pandemic situation. The furniture industry is also witnessing increased investments in 2021. For instance, Ashley Furniture Industries is confronting the United States furniture industry's challenges head on, unleashing the largest single investment in the company's 75-year history.