Growing demand for flexible designs and the rising importance of aesthetics will lead to increased demand for office furniture

Office Furniture Procurement Intelligence

Developing a strategic procurement plan for office furniture is crucial for two main reasons. First, to ensure that organizations procure good quality cost-effective items that meet the requirements of employees and supports a productive work environment. The second reason is that this strategy will help in effective space utilization and thereby promote better work collaboration. The market size was estimated at USD 62.3 billion in 2023. North America held the largest share of the global industry in 2023, accounting for 32%. This growth is attributed to an increased need for flexible designs and user comfort, high requirements for bespoke items, rising importance towards aesthetics, and increasing usage of biodegradable products. Asia Pacific is poised to witness the fastest growth rate during the forecast period due to the rapid expansion of urban areas, rising demand for innovative products, expansion of co-working spaces, and high adoption of e-commerce platforms.

Office furniture is used by a wide range of end-users to enable employee comfort, enhance space optimization, facilitate storage and organization, and improve employee collaboration. Key end-users include corporates, educational institutes, healthcare facilities, hospitality, and retail spaces. For instance, educational institutes utilize these products in classrooms, common areas, and storage units. On a similar note, retail spaces deploy these products in Point-of-Sale (POS) areas and checkout counters.

Key technologies influencing the growth of furniture products include smart chairs, collaborative tables, modular workstations, smart standing desks, and polyester hybrid powder coatings. Modular workstations are flexible solutions comprising various interchangeable components such as desks, partitions, and storage units. They provide users with versatile configurations, thus enabling them to adapt to different layouts and spatial constraints. Moreover, they facilitate efficient use of office space and promote employee collaboration by supporting seamless rearrangement of work areas.

Key suppliers that provide office furniture compete based on top-line growth, personalization features, pricing strategies, lead time reduction, and adherence to regulatory standards. Buyers in this industry have diverse options in terms of product variety, budget flexibility, ancillary services, and post-purchase support. Regulatory laws in several countries require suppliers to comply with rigorous standards related to product durability, performance, safety, recycling of materials, and environmental impact.

Several variables impact office furniture prices. Key elements affecting the prices include raw material price fluctuations, transportation and logistical expenses, compliance and quality control, and product innovation. Prices of frequently used raw materials such as plastic, wood, metal, and glass undergo significant variations based on feedstock and energy costs. For instance, the prices of Polyvinyl Chloride (PVC), a commonly used plastic in these products, declined in the U.S. from USD 750/MT in November 2023 to USD 715 /MT in January 2024.

The COVID-19 pandemic caused substantial disruption in the global office furniture industry. During the pandemic, demand for these items from end-users such as corporates and educational institutes dropped considerably, due to adoption of work-from-home model and educational institutes shutting down during lockdowns. However, demand from healthcare facilities witnessed significant growth due to a rise in patients and visitors. Since 2023, the demand has improved considerably and is projected to increase further during the next few years. Post the pandemic, key suppliers are increasingly utilizing specialty stores to sell products in this industry, due to benefits such as enhanced expertise, focused selection, knowledgeable staff, and a curated customer experience.

One of the best procurement practices is to compare prices offered by multiple suppliers, assess the range of items provided, evaluate the experience level of suppliers, compare client testimonials, evaluate the geographical service capabilities of suppliers, and compare the lead time of suppliers.

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Office Furniture Sourcing Intelligence Highlights

• The office furniture market includes a fragmented landscape, with vendors engaged in vigorous competition.

• Due to the intense market competition, buyers within the market have significant negotiating power and possess the flexibility to switch to better alternatives.

• India and China are favored as low-cost or best-cost countries for sourcing & procurement of office furniture due to their reasonable costs of raw material, labor, equipment, packaging and labeling, and logistics.

• The key cost components comprise raw materials, labor, equipment, packaging and labeling, and transportation and logistics. Other costs include rent and utilities, general and administrative, sales and marketing, quality control, compliance, and taxes.

Office Furniture Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2024 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

As per the office furniture procurement intelligence report, Grand View Research has identified the following key cost components:

• Raw materials

• Labor

• Equipment

• Packaging and labeling

• Transportation and logistics

• Others

  • Rent and utilities

  • General and administrative

  • Sales and marketing

  • Quality control

  • Compliance

  • Taxes

Raw materials form the largest key cost component of office furniture.

Office Furniture - Key Suppliers

• Global Furniture Group

• Haworth Inc.

• Herman Miller, Inc.

• HNI Corporation

• Humanscale Corporation

• Kinnarps AB

• Krueger International, Inc.

• Okamura Corporation

• Steelcase Inc.

• Vitra International AG