Australia Furniture Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia Furniture Market Trends

The Australia furniture market offers a wide range of designs, from contemporary to traditional, appealing to diverse tastes. Many brands prioritize sustainability by using eco-friendly materials, and local manufacturing helps reduce carbon footprints, lower shipping costs, and create jobs, enhancing consumer choice and environmental responsibility, thus driving Australia furniture industry growth. In May 2024, the Federal Government introduced Australia’s first national Environmentally Sustainable Procurement Policy (ESPP) covering construction services, textiles, ICT goods, and furniture. This initiative aims to increase local demand for recycled products, reduce greenhouse gas emissions, and improve product longevity, affecting approximately 2% of federal construction contracts.

The growth of the Australia furniture market is driven by innovation, integrating new technologies and design trends to cater to contemporary consumer preferences. Many designs focus on comfort, reflecting a laid-back lifestyle. Furthermore, the rise of e-commerce provides consumers with easier access to a wider variety of furniture, improving their shopping experience. In July 2023, Amart Furniture began a digital transformation to upgrade its eCommerce platform, transitioning to Salesforce Commerce Cloud (SFCC) and Salesforce Marketing Cloud. This change aimed to improve customer experience, necessitating that the team manage the solution independently while ensuring smooth inventory and pricing visibility across over 70 stores.

Australia Furniture Market Growth

The Australia furniture market is adopting innovative design trends that prioritize multifunctional and space-saving solutions for urban living. Additionally, many brands offer customisable options, enabling consumers to personalise their furniture, which boosts customer satisfaction and fosters brand loyalty. In September 2024, JR Bespoke Designs highlighted how custom-made furniture is transforming the at-home dining experience. By using sustainable materials and traditional craftsmanship, they create beautiful, environmentally-conscious pieces. Focusing on comfort and ergonomics, bespoke furniture enhances relaxation and fosters conversation. Their meticulous attention to detail and customization establishes new industry benchmarks, enabling the creation of unique dining spaces that align with clients’ visions, thereby contributing to the growth of Australia furniture market revenue.

Heightened environmental awareness is driving the demand for sustainable furniture, with consumers opting for eco-friendly materials and practices. Concurrently, support for local manufacturing is rising, reducing shipping costs and carbon footprints while promoting Australian craftsmanship and creating job opportunities in the Australia furniture market. In July 2023, Valiant, an Australian furniture hire and styling company, introduced an eco-friendly rental range crafted from post-consumer recycled plastics. The company provides high-quality, circular-driven furnishing solutions for interiors, workplaces, and events, repurposing ocean, and landfill plastics into rental furniture.

Australia Furniture Market Insights

• The Australian Bureau of Statistics reported that the value of new residential construction rose by 19.4% to reach $7.14 billion in January 2024.
• Data from the Australian Bureau of Agricultural and Resource Economics indicates that wood product imports reached $6.9 billion during the 2022-23 period.
• According to industry reports, non-residential building values increased by 12.4% to $4.92 billion in January 2024 compared to December 2023.

Industry News

April 2024

IKEA Australia unveiled a new range of gaming furniture. Previously, they collaborated with ROG on a gaming-specific line but chose to develop an original collection named BRÄNNBOLL, launched in September 2023, which featured modular designs aimed at a wider gaming audience.

March 2024

IKEA Australia launched IKEA Kreativ, a free AI-driven mixed-reality tool that simplifies room design by scanning spaces, removing existing items, and allowing users to experiment with IKEA furniture. With more than 50 pre-loaded showrooms, customers can discover new design concepts.

Australia Furniture Market Drivers

Technological Integration

The Australia furniture market is transforming as brands incorporate smart features into their offerings. This includes items like smart desks with charging stations and sofas with Bluetooth speakers, catering to consumers' desire for convenience and connectivity. Additionally, advancements like virtual and augmented reality, along with AI design tools, are enhancing the shopping experience, allowing customers to visualize products in their homes before buying. This technological integration is shaping the future of furniture design and retail, boosting the Australia retail industry revenue. In February 2024, King Living introduced in-store and virtual consultation technology at its Kingston Bentall Centre showroom, enabling customers and interior designers to book 45-minute sessions with sales staff to explore modular furniture solutions and experience features like smart charging stations and motion-controlled lighting.

Minimalism and Space-Saving Solutions

The Australia furniture market is thriving as minimalism becomes a prominent trend, with consumers favouring simple, functional designs that maximize space. As urban living areas shrink, the demand for stylish yet practical furniture is increasing. Popular solutions like multi-functional and modular designs enable consumers to optimize their spaces without compromising aesthetics. This trend in the Australia furniture market indicates a wider cultural movement towards decluttering and simplified living, encouraging brands to design versatile pieces that cater to contemporary needs while preserving a sleek, modern look. In June 2024, Bolia launched its flagship store in Melbourne, introducing a new Scandinavian aesthetic. The brand emphasizes what it calls “New Scandinavian Design,” featuring a “timeless” minimalist style inspired by nature and linked to the global design community. All Bolia products come with a 10-year warranty, and interior designers can access trade discounts.

Opportunities in the Australia Furniture Market

E-Commerce Growth

The Australia furniture market is transforming due to the rise of e-commerce, which offers consumers greater convenience and access to a broader range of products. Online shopping platforms are gaining popularity, enabling customers to browse, compare, and purchase furniture from home. Retailers are investing in user-friendly websites, virtual showrooms, and augmented reality tools to enhance the online shopping experience. Consequently, e-commerce is changing how consumers discover and acquire furniture, resulting in significant growth in the Australia furniture industry. Oz Things, a newcomer to the Australian online furniture market, launched in September 2022 with a wide array of products. With over 7,000 items and new additions each week, Oz Things sought to become the go-to destination for online furniture shopping in Australia. The company featured a diverse selection, including bedroom suites, dining tables, sofas, armchairs, home office furniture, outdoor settings, and more. Additionally, Oz Things offered free shipping on selected items, with delivery available throughout Australia.

Market Restraints

The Australia furniture market faces several challenges, including high competition from numerous local and international brands, which can drive prices down and hinder new entrants. Rising costs of raw materials and manufacturing affect profit margins, while supply chain disruptions lead to inventory shortages. Additionally, shifting consumer preferences towards sustainability requires costly adaptations from brands.

Economic fluctuations, such as inflation and interest rates, impact consumer spending on furniture. Compliance with local regulations presents further hurdles, and traditional retailers struggle to compete with the convenience and lower prices offered by e-commerce giants. Addressing these issues is vital for success in this evolving market.

Australia Furniture Industry Segmentation

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

Market Breakup by Material

• Wood
• Plastic
• Glass
• Metal
• Others

Market Breakup by Product Type

• Beds
• Sofa and Couch
• Cabinets and Shelves
• Chairs and Stools
• Others

Market Breakup by End Use

• Residential
• Commercial

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Furniture Market Share

By End Uses Analysis

The Australia furniture market is thriving, particularly through the residential sector, which provides homeowners with personalized options that reflect their unique tastes and lifestyles. This furniture is designed for comfort, enhancing the overall living experience, and making homes more welcoming. The Australia furniture market dynamics and trends are being influenced, particularly due to the popularity of space-saving and multifunctional pieces, which are ideal for smaller spaces. Durable, high-quality materials enhance longevity while supporting local manufacturers fostering community development and showcasing Australian craftsmanship. In October 2023, the US modern furniture chain Blu Dot opened a showroom in Collingwood, Melbourne. The store features Blu Dot's signature modern and playful designs, offering stylish furniture and home accessories focused on quality and affordability to attract Australian consumers.

The Australia furniture market is thriving, particularly due to commercial furniture, which is designed for durability in high-traffic areas like offices and retail spaces. This type of furniture enhances a business's professional image, attracting customers. Ergonomic designs focus on employee comfort, increasing productivity and well-being. Many suppliers offer customisable solutions tailored to specific business needs, and adherence to safety standards reduces liability, contributing to the furniture demand growth. In July 2022, Sydney-based venture Recess launched its ergonomic office furniture line, focusing on work-from-home solutions like stand-up desks, chairs, and accessories. They introduced The Nook, a soundproof booth that won an Australian Good Design Award for its sustainable materials and functional design, featuring ventilation, a desk, and LED lighting.

By Product Types Analysis

The Australia furniture market is thriving, as beds are crucial for restful sleep, which enhances overall health and well-being by providing necessary support. With a wide range of styles available, consumers can choose designs that suit their personal preferences and their home decor. Many beds also feature storage solutions, maximising space in smaller homes. Durable, well-made beds represent a wise long-term investment, further driving the Australia furniture market. In September 2024, Koala introduced a new sofa bed that serves as both a stylish chaise lounge and a queen-sized bed, perfect for adult sleepovers. It features hidden storage accessible by lifting the chaise seat cushion, ideal for compact living spaces.

The Australia furniture market is flourishing, as sofas and couches offer a variety of styles and materials that provide versatility for different living spaces. These pieces encourage social interaction by creating welcoming areas for family and friends to gather, strengthening connections. Sofas are also ideal for relaxation, whether for watching TV or reading, enhancing the cosy atmosphere of the home. Many contemporary designs come with multifunctional features like sofa beds and recliners, addressing various needs, thus affecting the demand of the Australia furniture market. In March 2022, Australian brand King and designer Charles Wilson adapted their Zaza sofa for outdoor use, enabling it to fold into a bed. The modular two- or three-seater features deep seats and flexible arm and backrests for customizable comfort.

Australia Furniture Market Regional Insights

The Australia furniture market varies by region, reflecting different demographics and trends. New South Wales is at the forefront with its modern, luxury designs. Victoria presents a blend of traditional and contemporary styles, prioritising multifunctional and sustainable choices. In Queensland, there is a strong emphasis on outdoor furniture suitable for the warm climate.

The Australian Bureau of Statistics indicates that from March 2016 to March 2024, the total value of residential building work in Australia fluctuated but remained generally stable, ranging between USD 21 billion and USD 25 billion, with a notable peak of over USD 24 billion in March 2020. In 2020-21, New South Wales experienced 46% of its residential building activity from new detached houses, with new apartments making up 38% and renovations at 16%. This surge in residential construction has increased the demand for stylish and functional furniture, contributing significantly to the growth of the Australia furniture market as new homes are built and existing ones are updated.

Competitive Landscape

Key players in the Australia furniture market are driving growth by specialising in the design and manufacture of innovative furniture solutions for educational and commercial settings. They provide a diverse array of products, such as desks, chairs, and collaborative furniture, emphasising functionality and adaptability to improve learning and work environments, all while prioritising quality and sustainability.

Key Industry Players

Amart Furniture Pty Ltd: Founded in 1981 and headquartered in Brisbane, Australia, it specialises in providing affordable and stylish furniture for homes. The company offers a wide range of products, including living, dining, and bedroom furniture, catering to diverse customer needs and preferences across Australia.

Steelcase Inc.: Established in 1912 and based in Grand Rapids, Michigan, Steelcase is a global leader in office furniture and workspace solutions. The company focuses on innovative designs that enhance productivity and employee well-being, emphasizing sustainability and adaptability to meet the evolving needs of modern work environments.

MillerKnoll, Inc.: It was formed in 2021 through the merger of Herman Miller and Knoll, with headquarters in Zeeland, Michigan. The company specialises in high-quality furnishings and design solutions for workplaces and homes, combining craftsmanship with innovative designs to create functional and aesthetically pleasing environments.

Greenlit Brands Pty Limited: Established in 2013 and headquartered in Melbourne, the company operates various retail brands, including Fantastic Furniture. The company focuses on providing affordable furniture and homeware, offering a wide selection of stylish products that cater to Australian consumers' diverse tastes and needs across the home furnishings market.

Other key players in the Australia furniture market report include Resero Pty Ltd, BFX Furniture, Forty Winks Franchising Pty Ltd, and Nordic Design among others.

Recent Development

October 2023

The luxury outdoor furniture brand Olan Living launched in Australia, offering customers a sustainable and luxurious outdoor furniture experience. Sustainability was central to Olan Living’s values, as it sourced wood exclusively from FSC-certified suppliers and aimed to reduce its carbon footprint through innovative, eco-friendly packaging solutions.

June 2023

Australian furniture brand Coco Republic launched its online store in the U.S. at cocorepublic.com. The website featured a range of home furnishings, including sofas, dining tables, chairs, bedroom, and outdoor furniture, as well as lighting, rugs, and décor, reflecting a natural indoor-outdoor design aesthetic aligned with Australian and Californian lifestyles.