Home Furnishing Market Size, Share & Trends Analysis Report By Product (Home Furnishing, Home Textile, Home Flooring), By Type (Indoor, Outdoor), By Distribution Channel (Specialty Store, Online), By Region, And Segment Forecasts, 2025 - 2030

Home Furnishing Market Summary

A stable housing industry encourages renovations and new home purchases, boosting sales of decor products. Rising disposable incomes, especially in emerging economies like China and India, further enhance consumer spending on home aesthetics. Shifting consumer tastes toward sustainability and eco-friendly products are influencing purchasing decisions. As awareness of environmental issues grows, consumers increasingly seek decor items made from sustainable materials. Additionally, trends such as DIY home improvement projects and personalized decor options are gaining traction, encouraging consumers to invest in unique and customizable items that reflect their styles. With urban living spaces becoming smaller, there is an increasing demand for furniture that serves multiple purposes. Consumers seek stylish yet functional solutions that maximize space while enhancing aesthetic appeal. As more people live in smaller homes, innovative storage solutions that combine functionality with design are becoming essential. The incorporation of innovative technologies into home furnishing is becoming more prevalent.

Consumers seek convenient products, such as intelligent lighting and automated furniture solutions. Manufacturers respond to consumer demands with multifunctional furniture that maximizes space utilization while maintaining aesthetic appeal. The limited indoor space has resulted in growing interest in outdoor decor. Urban consumers invest in outdoor furniture and decor to enhance their balconies and patios, creating additional living areas that reflect their style.

The increase in rental living is also expected to be a key market driver shortly. Urban areas often see a high proportion of rental properties due to high real estate costs. Renters typically move more frequently, leading to a demand for affordable, lightweight, and easily movable furniture. Rental markets encourage furniture that is easy to disassemble and reassemble. Flat-pack furniture from companies like IKEA has thrived in this environment. Renters also look for budget-friendly yet durable options, emphasizing affordability without sacrificing design.

While e-commerce has expanded the home furnishing industry, it also presents significant challenges, especially for traditional brick-and-mortar stores. The shift to online shopping demands robust digital infrastructure, including user-friendly websites, secure payment systems, and efficient delivery options.

Consumer Survey & Insights

Radial, an e-commerce logistics provider, conducted a consumer survey focused on e-commerce and the home furnishings industry in 2024. It has been observed that U.S. consumers prefer to buy during traditional holiday periods (26%) and sales periods like Presidents Day or Independence Day (21%). We also see many consumers making purchases when they redecorate (28%), during promotional events (28%), or-most commonly when they need (34%).

In addition to this, Baby Boomers are more likely to buy home furnishings as needed (45%) and much less likely to buy things when they move (15%). On the other hand, Gen Z consumers purchase most during the holidays (65%) or when moving (53%). And Gen Z likes to purchase during promotional events to get better deals. Gen X and Millennials want to buy during the holidays or when redecorating a space.

Trump Tariff Insights

The Home Furnishings Association (HFA) is North America’s largest organization devoted specifically to the needs and interests of home furnishings retailers. According to HFA, on 12th May 2025, the White House announced a significant development in tariffs: The United States and China have agreed to a 90-day tariff cease-fire, reducing import levies and providing temporary relief for supply chains ahead of the back-to-school and holiday shopping seasons. The U.S. will cut its tariff on Chinese goods from 145% to 30%, while China will reduce its tariff from 125% to 10%.

Short-Term Relief for Retailers:

The immediate reduction in tariffs provides a much-needed respite for retailers heavily reliant on Chinese imports. Companies like Wayfair and RH, which saw their shares jump by over 21% and 17% respectively, stand to benefit from lower import costs. This relief is timely as retailers prepare for critical sales periods like back-to-school and the holiday season.

Manufacturers Face Strategic Decisions:

Manufacturers are confronted with the task of reassessing their supply chains. While the reductions alleviate some cost pressures, the remaining 30% tariff on Chinese goods still represents a significant expense. This scenario prompts manufacturers to consider diversifying their sourcing strategies, potentially shifting production to countries like Vietnam, India, or Brazil.

Moreover, the truce’s temporary nature may deter long-term investments in new supply chain infrastructures. Manufacturers must weigh the benefits of immediate cost savings against the risks of future tariff escalations.

Product Insights

Home furniture accounted for a revenue share of 50.76% in 2024. Growing urbanization is expected to be a key driver for market growth. As urbanization accelerates, more people are moving to cities. The United Nations projects that by 2050, 68% of the global population will reside in urban areas, up from 55% today. This shift is driving demand for residential furniture as new housing developments emerge to accommodate growing populations. Infrastructure improvements, including residential construction and smart city initiatives, often accompany rapid urbanization. These developments necessitate various furniture types to fit modern living spaces, particularly in densely populated areas.

The demand for other home furnishing products is expected to grow at a CAGR of 10.0% from 2025 to 2030, driven by rising consumer interest in personalized and multifunctional decor items such as room dividers, wall art, and decorative accents. Increasing urbanization and smaller living spaces fuel demand for space-saving and modular accessories. Additionally, eco-conscious consumer preferences steer growth toward sustainable, artisanal, and ethically sourced furnishings. Digital-first shopping behaviors and social media influence are accelerating the discovery of niche, design-forward brands. Technology-integrated decor, like smart lighting and voice-assisted furnishings, is a key trend in enhancing modern living environments.

Distribution Channel Insights

Sales of home furnishing through online channels held a revenue share of 34.94% in 2024. Fueled by the growing convenience and accessibility of e-commerce platforms. Consumers increasingly value the ability to browse various products from the comfort of their homes, supported by detailed product descriptions, reviews, and virtual room visualizations. The rise of fast delivery services, easy return policies, and augmented reality features that help with product placement further boost online sales. Additionally, consumers are drawn to exclusive online collections, personalized shopping experiences, and the ability to compare prices and trends effortlessly. Social media and influencer marketing also play a significant role in shaping consumer preferences and driving traffic to online stores.

Sales of home furnishing through specialty stores are set to grow at a CAGR of 9.3% during the forecast period, driven by the increasing demand for curated, high-quality products and personalized shopping experiences. Consumers gravitate toward specialty stores for their expertise in specific home furnishing categories, such as eco-friendly materials, luxury items, and custom-made furniture. The desire for unique, premium products that align with individual tastes and home aesthetics drives this growth. Additionally, in-store experiences like design consultations, hands-on product trials, and exclusive collections enhance customer engagement. As sustainability and craftsmanship gain importance, specialty stores focusing on artisanal and ethically sourced items are well-positioned to capitalize on evolving consumer preferences.

Type Insights

The indoor home furnishing segment held a robust revenue share of 92.44% in 2024. There is a strong emphasis on bringing the outdoors inside, using natural materials like wood and stone, as well as indoor plants and living green walls. Homes are designed for multiple functions, combining living, working, and socializing spaces. This trend includes multifunctional furniture and rooms that can easily transition between different uses. Sustainability is a significant concern for consumers, leading to increased demand for eco-friendly products made from recycled materials or sustainably sourced goods.

The outdoor home furnishing segment is expected to grow at a CAGR of 10.2% from 2025 to 2030. There is a noticeable shift toward bright, bold colors and playful patterns in outdoor furnishing. Designers encourage homeowners to experiment with mixing florals, stripes, and vibrant hues to create lively outdoor spaces. The demand for comfortable, durable outdoor seating continues to rise. Homeowners are moving away from traditional plastic furniture to plush couches, sectionals, and chairs made from performance fabrics that withstand the elements while providing comfort.

Regional Insights

North America home furnishing market held a share of 36.67% in 2024. Consumer preference has shifted toward home environments, with many investing in home improvements and furnishings to create comfortable and functional living spaces. This trend is linked to the perception of homes as a key to physical and mental well-being, driving demand for various home furnishings. A robust housing market, characterized by rising construction and sales of new homes, is a significant driver. Increased household formations and the demand for single-family and multifamily units are fueling the need for furniture and decor.

U.S. Home Furnishing Market Trends

The home furnishing industry in the U.S. accounted for a revenue share of 67.56% in 2024. Consumers are spending more on stylish and high-quality furniture, with the average annual expenditure on furniture per consumer unit increasing significantly from USD 355 in 2010 to USD 750 in 2023. This trend indicates more substantial growth potential for the market as disposable incomes rise. The rise of remote work has increased demand for home office furniture as consumers adapt their living spaces for work and leisure. This shift has spurred sales across various furniture segments.

The expansion of e-commerce platforms has transformed how consumers shop for home furnishings. Online sales have surged, with many consumers appreciating the convenience of home delivery and a broader selection of online products. As homes become smaller due to urbanization and changing family structures, there is a growing demand for multifunctional and space-saving furniture solutions. Consumers are increasingly looking for compact and easily movable items that maximize utility. 

Asia Pacific Home Furnishing Market Trends

The home furnishing industry in Asia Pacific is expected to grow at a CAGR of 10.0% from 2025 to 2030. Growing urbanization is expected to remain a key driver for market growth in the region. Asia is experiencing significant urban migration, with the population projected to rise from 56.9% in 2022 to 68% by 2050. This influx into cities creates a heightened demand for housing and, consequently, for home furnishings to fill these new living spaces.

Asian countries are witnessing rapid economic growth and increasing disposable incomes. This financial uplift allows consumers to invest more in home furnishing, enhancing their living environments with stylish and comfortable options. The expanding middle class in countries like China and India is driving demand for quality home furnishings as these consumers seek to improve their living standards and home aesthetics.

Key Home Furnishing Companies Insights

Key players operating in the home furnishing market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.

Recent Developments

• In March 2025, Wayfair Inc., the destination for all things home, today announced a new standard in home shopping with the launch of Wayfair Verified, a program designed to give customers a shortcut to the best items in the Wayfair catalog across every style and price point. This trusted seal of approval highlights the company's most trusted products-carefully evaluated and selected by Wayfair product specialists for quality and value, making it easier than ever for shoppers to outfit their homes with confidence.

• In March 2024, Ashley Home, Inc. and Resident Home Inc. announced the signing of an agreement, under which Ashley Home, Inc., an affiliate of Ashley Global Retail, LLC (collectively, "Ashley"), will acquire Resident Home Inc. ("Resident"). The transaction, which was unanimously approved by the Board of Directors of both companies, provides Resident, a leading digital retailer and wholesaler of mattresses and bedding accessories, with an opportunity to expand its home furnishings assortment and global footprint. Through Ashley's affiliate company, Ashley Furniture Industries, LLC ("AFI"), the Resident will experience improved sourcing and efficiencies to foster additional growth in both its direct-to-consumer and wholesale businesses.

• In May 2023, Williams-Sonoma, Inc., the world’s largest digital-first, design-led, and sustainable home retailer, announced the launch of a new brand in the company’s portfolio, GreenRow. Internally designed and developed, the new brand specializes in utilizing sustainable materials and manufacturing practices to create colorful, vintage-inspired, heirloom-quality products. GreenRow’s debut assortment features living, bedroom, and dining furniture as well as rugs, bedding, bath, baby, lighting, pillows, throws, curtains, table linens, dinnerware, and décor.

Home Furnishing Market Report Scope

Global Home Furnishing Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global home furnishing market report based on product, type, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Home Furniture

  • Home Textile

  • Home Flooring

  • Wall Decor

  • Others

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Indoor

  • Outdoor

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • South Korea

  • Central & South America

    • Brazil

  • Middle East and Africa (MEA)

    • South Africa