Outdoor Furniture Market Size, Share & Trends Analysis Report By Material Type (Wood, Plastic, Metal), By End-use (Commercial, Residential), By Region (North America, APAC, Europe, MEA, CSA), And Segment Forecasts, 2019 - 2025

Report Overview

The global outdoor furniture market size to be valued at USD 25.0 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% during the forecast period. The growing real estate industry and the urban population are the key factors driving the market. Moreover, increasing per capita and disposable income plays an important in fueling industry growth. Furthermore, improved consumer spending power and a growing trend of traveling have resulted in increasing tourists across the world. The trends can be observed mainly in seaside areas, hill stations, and other monumental places. This, in turn, leads to an increasing number of hotels, resorts, public gardens, and open spaces, thereby propelling the demand for outdoor furniture.

Outdoor furniture finds its application majorly in residential, hotels, and resorts. Demand for outdoor furniture is growing in developing countries like India, China, Singapore, Malaysia, and Thailand. The selection of furniture depends on various factors such as weatherproof, insect resistance, fungus and pest repulsion, and crackproof. Manufacturers are shifting towards eco-friendly materials such as moso bamboo, which is stronger than oak wood.

The usage of outdoor furniture is increasing at a faster rate in the commercial sector. The growing trend of traveling, exploration of new places, and changing lifestyles are the key factors boosting the growth of the sector. Several manufacturers are concentrating on the commercial sector due to the aforementioned factors in order to maximize their sales.

Outdoor Furniture Market Trends

The market demand is anticipated to be driven by shifting customer preferences in emerging countries for residential and commercial infrastructure. Consumers are focused on renovating outside spaces such as gardens, terraces, balconies, porches, and lawns to make more pleasant and intriguing designs.

Consumers are willing to spend disposable income to enhance aesthetics and growing product diversity, notably in the design and innovation of outdoor home furnishings. This is anticipated to drive market growth.

Moreover, the open areas have good accommodation capacities, which gives an opportunity for many hotels and restaurants to expand their dining space on rooftops. This has a favorable impact on the use of outdoor furniture, and hence, many manufacturers are increasing their production capacities to grab this opportunity and meet the demand.

The materials used for manufacturing furnishing products are expensive and have a high production cost. This is expected to limit the market growth.

Material Type Insights

On the basis of material type, the product is segmented into wood, plastic, and metal. Wood is the most widely used material type for making furniture. Wood dominated the market with a share of more than 60.0% in 2018. Wood finds its application in both residential and commercial end-use sectors due to its features including durability, comfort, and a rich and natural look.

Plastic accounted for more than 15.0% share of the overall revenue in 2018. It is highly preferred among the consumer groups with an economic budget, as the material requires minimal maintenance and is lightweight. The presence of substitutes like eco-friendly products is restraining the growth of the plastic segment.

End-use Insights

The residential segment dominated the market in 2018 with a 58.6% share of the overall revenue. Growing population, increasing per capita income, westernization, and changing lifestyles are the prominent factors driving the residential segment. The commercial segment is the fastest-growing segment, registering a CAGR of 6.2% over the forecast period. The growing trend of traveling and exploring has led to an increase in the number of hotels and resorts thus, positively impacting the overall growth of the segment.

Regional Insights

North America dominated the market in 2018 with an almost 35% share of the overall revenue, registering a CAGR of 5.4% over the forecast period. The U.S. is the leading consumer of outdoor furniture in North America, thereby boosting regional growth. The presence of companies like Brown Jordan and Forever Patio, innovations in the market, and the willingness of the consumers to spend on the product are the key factors fueling the market growth in the region.

Asia Pacific is a prominent regional market, expanding at a CAGR of 6.3% in the forecast period. Developing countries like India and China and increasing tourism in countries like Singapore, Malaysia, and Thailand are the key factors fueling the market growth in the region. Thailand is among the most preferred tourism destinations, along with Singapore, which has largely driven the demand in 2016. For instance, in 2016, Thailand witnessed 32.6 million international tourist arrivals.

Leading manufacturers such as Inter Ikea Group started providing their services in countries like India and China. Ikea opened its first store in India in 2018 and the key reason behind its expansion was the rapid development in these countries in the last few years. China is growing rapidly and thus Inter Ikea Group finds it a better country to expand its business.

Key Companies & Market Share Insights

Key players operating in the market include Inter Ikea Group, Ashely Industries, Brown Jordan, Keter Group, Agio International Company Limited, and Lloyd Flanders. The market presents moderate to low entry barriers for the new entrants and the competition is driven by factors such as mergers and acquisitions, competitive advantages, and product innovation. For instance, it has been reported that Ikea may adopt online platforms such as Amazon and Flipkart in the near future.  The industry share is fragmented globally due to the presence of a large number of players in the market.

Leading manufacturers are expanding their geographical presence in order to gain maximum market share. The establishment of strategic partnerships with buyers in order to develop new products is projected to remain a critical success factor over the next few years. Taking into account all the above-mentioned factors, manufacturers are likely to focus on product innovation, catering particularly to the hotels, resorts, and residential sectors.

In the coming years, online platforms will play a vital role in order to gain a competitive advantage for a company. Various online platforms such as Pepperfry, Home center, and Urban Ladder that sells furniture online are growing rapidly. Companies need to start selling their products through these channels in order to sustain in the market in the coming years. The leading companies sell their products through their own websites and they have their own supply chain system in order to deliver the quality to the fullest and to gain a competitive edge over others.

Recent Developments

• In June 2022, IKEA and Sabine Marcelis unveiled the first products, which include two luminous lamps from the VARMBLIXT line and are estimated to be released in Spring 2023.IKEA and Sabine Marcelis have teamed up to celebrate the beauty of light in the home and its good impact on health

• In June 2022, IKEA launched a new collection created in partnership with nine Latin American designers. IKEA is announcing this collection to commemorate its heritage after retail branches in Mexico and the Dominican Republic. The firm is about to openstores in Peru, Colombia, and Chile

• In 2019, Brown Jordan International, Inc. announced the acquisition of Castelle Furniture Co., Inc.'s assets as well as its Costa Rican activities. The deal creates a company with consolidated net sales of almost $400 million, combining top suppliers and providing outdoor casual furniture to the household and hospitality sectors

Outdoor Furniture Market Report Scope

Global Outdoor Furniture Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global outdoor furniture market report on the basis of material type, end-use, and region.

• Material Type Outlook (Revenue, USD Billion, 2015 - 2025)

  • Wood

  • Plastic

  • Metal

• End-use Outlook (Revenue, USD Billion, 2015 - 2025)

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • India

    • China

  • Middle East Africa

    • UAE

  • CSA

    • Brazil