Outdoor Furniture Market Size, Share & Trends Analysis Report By Material Type (Wood, Plastic, Metal), By End-use (Commercial, Residential), By Region (APAC, North America, Europe), And Segment Forecasts, 2022 - 2030

Report Overview

The global outdoor furniture market size was valued at USD 44.23 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. The growth of the global industry is primarily driven by the rising need for outdoor furniture products in hotels, resorts, open spaces, and public gardens. These trends are mainly observed in seaside areas, hill stations, scenic beauty places, and historical monuments. Thus, the increasing number of hotels and restaurants may drive industry growth during the forecast period. In addition, consumer attention is changing to enhancing outside areas to provide more aesthetically pleasing and comfortable designs in balconies, gardens, and porches, supporting industry development.

Customers are eager to spend their disposable income, especially on the design and production of outdoor furniture goods, which enhance aesthetics.COVID-19 affected global industry due to the shutting down of factories, supply chain disruptions, and a downturn in the world economy. The hospitality industry was impacted by travel restrictions and closures during the pandemic as hotels and resorts stayed closed, which had an impact on outdoor furniture sales. However, because of the pandemic, people spent more time at home, which prompted both indoor and outdoor house upgrades. During the pandemic, cushions, lights, outdoor dining furniture, and gardening supplies witnessed significant growth and ever-grown consumer attention.

Consumer demand for outdoor furniture in the residential sector is growing due to rising disposable income. Several homeowners are working on improving the look of their gardens and balconies with delightful seating areas. Moreover, the selection of furniture is heavily influenced by external climatic conditions. Good weather resistance, insect resistance, superior tensile strength, and crack-proof properties are among the key factors considered when selecting outdoor furniture. In addition, restaurants and cafes across the globe are offering outdoor dining facilities. For instance, according to a survey conducted by the National Restaurant Association in September 2021, 65% of the surveyed restaurant operators across the U.S. started offering on-premises outdoor dining in areas, such as decks, sidewalks, or patios.

This, in turn, is expected to have a major impact on the global industry and boost the demand for outdoor furniture in hotels and cafes. Online distribution channels are now playing an important role in the development of the retail and furniture industries. Online channels offer a diverse variety of brands at competitive prices, drawing a larger customer base and stimulating the growth of the industry. For instance, IKEA, a major furniture manufacturer, stated that its official website saw more than 2.1 billion visits in 2016 and became an important marketing and sales platform for the company. Furthermore, with rapid digitization, rising mobile usage, and improved internet connectivity, companies are increasingly moving from brick-and-mortar transactions to e-commerce portals.

Manufacturers are showcasing their products on numerous online platforms, such as company-owned portals and third-party retailers, to increase product exposure, especially in emerging markets. Appropriate pricing, dealer margins, a strong distribution network, and brand awareness are some of the critical factors determining the success of industry players. Customers buying outdoor furniture are looking for the right combination of luxury, elegance, and versatility. They tend to prefer items that are both elegant and trendy, as well as sturdy and easy to maintain. Furthermore, outdoor fire pit sets and conversation sets are gaining popularity, especially among millennials.

Material Type Insights

Based on material type, the global industry has been further categorized into wood, plastic, and metal. The wood material type segment dominated the global industry in 2021 and accounted for the largest share of more than 65.40% of the overall revenue. The segment is likely to remain dominant throughout the forecast period. The growing popularity of wood furniture is due to its benefits, such as robustness, improved comfort, and aesthetic appeal. Wood is among the most widely used raw materials for furniture manufacturing across the globe.

Moreover, wooden outdoor furniture is lightweight, strong, and has an aesthetic, natural appearance, making it a perfect material for making outdoor furniture. The metal segment is expected to register the fastest CAGR over the forecast period. The rapid growth can be attributed to its solid and robust material properties. Furthermore, metallic frames can be smaller and molded into more complicated shapes due to their strength, providing designers with greater style versatility. Metal is also a great choice when combined with other materials with their own aesthetic and functional benefits.

End-use Insights

In terms of revenue, the residential segment accounted for the largest share of more than 58.20% of the overall revenue in 2021. The key elements influencing the residential segment include population growth, rising per capita income, westernization, and shifting lifestyles. In addition, customer focus is changing to enhancing outside areas to produce more aesthetically pleasing and comfortable designs making a significant contribution to industry growth. Rising income levels are boosting product sales in both residential and non-residential environments in many nations. The overall industry will be propelled by the rising demand for outdoor seating options and other accessories.

Moreover, the industry expansion is being supported by the proliferation of house sales along with an increase in resorts, hotels, gardens, and restaurants. The commercial segment is anticipated to register the fastest CAGR over the forecast period. According to Travel Pulse, the U.S. had the highest number of hotel projects in 2021, with almost 669,460 rooms under construction, which accounted for 41% of all projects in the world. Dallas, New York, Los Angeles, Atlanta, and Houston had the highest number of constructions. These commercial establishments focus on achieving a sophisticated and elegant look.

Regional Insights

The Asia Pacific region is expected to register the fastest growth rate of more than 6.9% over the forecast period. International tourism is gaining strong attention in countries including China, Malaysia, South Korea, Singapore, and India. With the growing tourist activity, the sales of outdoor furniture are rising, helping in increasing the market share of the commercial segment in the region.

North America, on the other hand, accounted for the largest share of the overall revenue in 2021 and is expected to maintain the trend throughout the forecast period. The product demand in North America has increased owing to the growing trend of family dinners and gatherings at home. This trend is further supported by the rising interest in creating and maintaining the front yard and backyard gardens not only to enhance the aesthetics of the homes but also to entertain guests.

Key Companies & Market Share Insights

The industry is characterized by the presence of a few established players and new entrants. Many big players are increasing their focus on the growing trend of the market. Companies are diversifying their service offering to maintain market share.  For instance:

• In January 2021, Kimball International launched Interwoven, a furnishing brand that provides customer-centric furniture products. Interwoven joined Kimball International’s health business unit to offer a wide range of furnishings, such as lounge seating, modular casework, and recliners, suited for all types of health settings

• In April 2021, Keter partnered with an Israeli developer of thermoplastic material, UBQ Materials, to bring out multiple product lines for sustainable garden goods. This partnership will help UBQ Materials in achieving its goal of being sustainable by including 55% of recycled content in its products

Some of the key players operating in the global outdoor furniture market include:

• Inter IKEA Systems B.V.

• Ashley Furniture Industries, Inc.

• Brown Jordan Inc.

• Kenter

• Agio International Company, LTD

• Lloyd Flanders, Inc.

• Barbeques Galore

• Century Furniture LLC.

• Aura Global Furniture

• Kimball International Inc.

Outdoor Furniture Market Report Scope

Global Outdoor Furniture Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global outdoor furniture market report based on material type, end-use, and region:

• Material Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Wood

  • Plastic

  • Metal

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • UAE