The furniture market in China has experienced significant growth over the past few decades, driven by rapid urbanization, rising disposable incomes, a growing middle class, and changing consumer preferences. As China continues to expand economically and modernize its infrastructure, the demand for furniture, both for residential and commercial use, has surged. With a diverse range of products ranging from home furniture to office furniture, China’s furniture industry is one of the largest globally, contributing to the country’s economic development and becoming a major player in the global furniture export market.

This report provides an in-depth look at China’s furniture market, covering its market size, growth drivers, key segments, trends, and major players.

Overview of China’s Furniture Market

China’s furniture market is vast and varied, encompassing a wide array of products for both domestic and commercial purposes. The market has been driven by the rapid urbanization of the country, which has led to increased demand for residential and office spaces, as well as the growing middle class, which has shifted towards more modern and stylish furniture products. The furniture industry in China includes a range of materials such as wood, metal, plastic, glass, and fabric, and covers categories such as home furniture, office furniture, and outdoor furniture.

Market Size and Growth

In 2023, the total value of China’s furniture market was estimated at approximately USD 65 billion. The market is characterized by robust domestic demand, strong export activity, and a diverse consumer base ranging from budget-conscious buyers to affluent consumers seeking high-end designer products.

• The residential furniture segment, which includes living room, bedroom, kitchen, and other home furniture, was valued at about USD 35 billion in 2023, accounting for roughly 50% of the total furniture market.
• The office furniture market in China, including desks, chairs, storage, and commercial office furniture, was valued at approximately USD 12 billion, with strong growth driven by increasing demand from the growing business and commercial sectors.
• Outdoor furniture and specialty products (such as custom-made furniture and premium designer pieces) made up the remaining portion of the market, estimated at USD 18 billion in 2023.

The market for furniture in China is expected to grow at a compound annual growth rate (CAGR) of 7-9% over the next five years, fueled by increasing demand for both residential and commercial furniture, urban expansion, and the growing trend of e-commerce.

Key Drivers of Growth in the Furniture Market

Several factors have contributed to the growth of the furniture market in China. These include the rising disposable incomes of urban populations, government policies supporting the construction of residential and commercial spaces, increasing interest in interior design, and the rapid rise of e-commerce platforms.

Rising Disposable Incomes and Expanding Middle Class

The economic growth in China has contributed to a steady rise in disposable incomes, particularly in urban areas. As the country’s middle class expands, more consumers are able to afford higher-quality, stylish, and durable furniture. The growing wealth of Chinese households is pushing the demand for furniture beyond basic, functional items to more aesthetically appealing and customizable options.

• In 2023, approximately 60% of China’s population lived in urban areas, with incomes growing at an annual rate of 6-8%. As a result, there is an increasing willingness to invest in home improvement and stylish furniture.
• Rising disposable incomes have led to increased spending on non-essential goods, including furniture, with consumers seeking higher-quality, design-driven products that reflect their evolving lifestyles.

With greater financial capacity, Chinese consumers are increasingly focused on quality and design in their furniture purchases, expanding opportunities for both domestic and international brands to cater to this growing demand.

Urbanization and Rapid Growth of Residential and Commercial Real Estate

Urbanization is one of the most significant drivers of demand for furniture in China. The rapid migration from rural areas to urban centers has led to a surge in demand for housing, which in turn drives demand for furniture. As more people settle in cities, the demand for modern furniture that fits smaller living spaces and apartments has increased.

• By 2023, over 900 million people lived in urban areas, and the urbanization rate exceeded 60%. This trend is expected to continue, creating significant demand for residential furniture, particularly in tier 1 and tier 2 cities.
• The commercial real estate sector, including office buildings, retail spaces, and hospitality establishments, has seen tremendous growth, further increasing the demand for office furniture, hotel furnishings, and other commercial furniture products.

The ongoing trend of urbanization and the continued development of residential and commercial real estate will continue to drive demand for furniture across China.

E-commerce Growth and Digitalization

The rapid growth of e-commerce in China has had a profound impact on the furniture market. Online furniture sales have grown exponentially in recent years, fueled by the rise of digital platforms, the increasing internet penetration in China, and the convenience of online shopping.

• The online furniture market in China was valued at approximately USD 15 billion in 2023, representing nearly 25% of the total furniture market. E-commerce platforms such as Taobao, JD.com, and Tmall are key players in the online furniture space.
• The ease of browsing a wide range of products, reading reviews, and comparing prices has made e-commerce an increasingly popular method for purchasing furniture, especially among younger, tech-savvy consumers.

E-commerce is expected to continue to grow rapidly in China, creating new opportunities for both local and international furniture brands to reach a broader customer base.

Changing Consumer Preferences and Interior Design Trends

Chinese consumers are becoming increasingly sophisticated in their tastes and preferences when it comes to home décor and furniture. The rise in interest in interior design, particularly among younger generations, has driven the demand for high-quality, designer furniture that is both functional and aesthetically appealing.

• In 2023, approximately 45% of furniture consumers in China expressed a preference for personalized or custom-made furniture that reflects their individual tastes.
• The demand for contemporary, minimalist, and environmentally conscious furniture is growing, with a focus on sustainable materials, space-saving designs, and multifunctional furniture that caters to the modern urban lifestyle.

Changing consumer preferences toward more design-forward, customizable furniture are driving growth in the market, particularly for higher-end, niche products.

Key Segments of the Furniture Market

The furniture market in China can be broadly divided into several key segments, each with its distinct growth drivers and consumer base. These segments include residential furniture, office furniture, outdoor furniture, and specialty furniture such as custom-made and luxury products.

Residential Furniture

Residential furniture is the largest segment in China’s furniture market, encompassing furniture for the living room, bedroom, kitchen, and other areas of the home. As the primary driver of furniture demand, residential furniture has seen significant growth in recent years.

Market Size and Demand

In 2023, the residential furniture segment in China was valued at approximately USD 35 billion, making up about 50% of the total furniture market. This category includes sofas, chairs, tables, beds, storage units, and more, with consumers increasingly seeking modern, stylish, and multifunctional products that cater to their space and design preferences.

• The growing trend of small and multifunctional furniture pieces, driven by space limitations in urban apartments, has made compact and adaptable furniture increasingly popular.
• The demand for environmentally friendly materials such as sustainable wood and non-toxic paints is also growing, as Chinese consumers become more aware of sustainability in home furnishings.

Residential furniture will remain the dominant segment in China’s furniture market, with continued demand driven by urbanization, increasing disposable incomes, and changing preferences.

Office Furniture

Office furniture is another significant segment of China’s furniture market, driven by the growing number of businesses, the expansion of the service sector, and the increasing demand for ergonomic and stylish office designs.

Market Dynamics

The office furniture market in China was valued at approximately USD 12 billion in 2023. This segment includes a wide range of products, including desks, chairs, storage systems, and partition systems, which are essential for both traditional office spaces and modern co-working environments.

• The demand for ergonomic office furniture, such as adjustable desks and comfortable chairs, has increased due to the growing focus on employee wellness and productivity.
• The rise of the gig economy and remote working has also led to an increase in demand for home office furniture, as more people set up dedicated workspaces at home.

Office furniture will continue to grow in China, driven by the expansion of both traditional and flexible work environments and a focus on modern office aesthetics.

Outdoor Furniture

Outdoor furniture is an emerging segment in China’s furniture market, driven by an increasing interest in outdoor activities and the growing popularity of private outdoor spaces such as patios, balconies, and gardens.

Market Insights

In 2023, the outdoor furniture segment was valued at approximately USD 3 billion. Consumers in urban areas are increasingly investing in outdoor furniture as they seek to create functional and aesthetically pleasing outdoor spaces.

• Products such as garden tables, chairs, loungers, umbrellas, and storage units are in high demand, particularly in major cities like Beijing, Shanghai, and Shenzhen, where private outdoor spaces are highly valued.
• The demand for sustainable, weather-resistant, and low-maintenance materials in outdoor furniture is growing, as consumers seek durable products that can withstand China’s diverse climate conditions.

The outdoor furniture segment is expected to experience continued growth, driven by the increasing popularity of outdoor living spaces and a desire for more luxurious home environments.

Specialty Furniture

Specialty furniture includes products such as custom-made furniture, luxury furniture, designer pieces, and furniture for niche markets. This segment caters to consumers who seek personalized, high-end, or unique pieces that match their individual tastes.

Market Trends

In 2023, the specialty furniture segment was valued at approximately USD 8 billion, with a growing focus on high-end, luxury products. Consumers in tier 1 and tier 2 cities are particularly attracted to luxury and custom-designed furniture, as they seek products that reflect their social status and design preferences.

• The luxury furniture market in China is growing rapidly, with international luxury brands like Fendi, Gucci, and Louis Vuitton expanding their presence in the furniture market.
• Custom-made and bespoke furniture, including tailored living room sets, premium sofas, and high-quality storage solutions, are becoming increasingly popular among affluent consumers.

Specialty furniture, driven by demand for luxury, custom design, and high-quality materials, will continue to expand, catering to China’s growing number of affluent consumers.

Major Players in China’s Furniture Market

The furniture market in China is highly competitive, with both domestic and international players. Leading companies in the market include local manufacturers, global furniture brands, and design-driven retailers catering to various consumer segments.

IKEA

IKEA is one of the largest and most recognized furniture brands in China, known for its affordable, functional, and stylish furniture. The Swedish brand has successfully captured a significant share of the market, particularly in urban areas.

• In 2023, IKEA’s revenue from its Chinese operations was estimated at USD 3.5 billion, with the majority of sales coming from its home furniture range.
• IKEA’s business model, which focuses on self-assembly, affordability, and a wide product range, has resonated with Chinese consumers seeking modern and cost-effective furniture.

IKEA remains a dominant force in China’s furniture market, leveraging its global brand and localized offerings to meet the demand for functional and stylish home furnishings.

Shenzhen Matsuoka

Shenzhen Matsuoka is a major Chinese manufacturer of home and office furniture, offering a wide range of products from affordable to mid-range designs. The company’s focus on quality and functionality has helped it establish a strong presence in both the domestic and international markets.

• In 2023, Shenzhen Matsuoka’s revenue from furniture sales was approximately USD 1.5 billion, with its products being sold through both online platforms and physical stores.
• The company has expanded its product offerings to include smart furniture and eco-friendly options, catering to the growing demand for innovative and sustainable products.

Shenzhen Matsuoka is a key player in China’s competitive furniture market, known for its affordable pricing and quality products.

La-Z-Boy

La-Z-Boy, an American furniture brand, has established a strong foothold in China, particularly in the luxury and premium furniture segments. The brand’s reputation for comfort and high-quality craftsmanship has made it popular among affluent consumers.

• La-Z-Boy’s revenue from China was approximately USD 500 million in 2023, with sales primarily driven by its high-end recliners and living room furniture.
• The brand has expanded its presence through both standalone stores and partnerships with local retailers, catering to China’s growing middle class and luxury consumer base.

La-Z-Boy’s continued success in China is fueled by its focus on comfort, design, and premium quality.

HUAWEI Furniture

HUAWEI Furniture is a fast-growing Chinese brand that focuses on high-end, design-driven furniture products. The company is known for its innovative designs, which combine technology and style to create modern furniture solutions.

• In 2023, HUAWEI Furniture reached USD 400 million in revenue, with a growing presence in tier 1 cities and a focus on luxury and custom furniture.
• The company has been expanding into both the residential and office furniture sectors, with an emphasis on smart, tech-integrated furniture pieces.

HUAWEI Furniture represents the rise of China’s homegrown furniture brands, catering to affluent, tech-savvy consumers seeking stylish, functional products.

Challenges Facing the Furniture Industry in China

Despite its strong growth, China’s furniture industry faces several challenges, including supply chain disruptions, rising raw material costs, competition from both domestic and international brands, and environmental concerns.

Supply Chain Disruptions

China’s furniture industry has been affected by global supply chain disruptions, particularly in the procurement of raw materials such as wood, steel, and plastics. These disruptions have led to price increases and delays in production, which could affect overall market growth.

• The global shortage of shipping containers and logistics bottlenecks have impacted the transportation of materials, resulting in higher costs and longer lead times.
• Manufacturers may need to adapt by diversifying their supply chains or using more locally sourced materials to mitigate the impact of global supply chain disruptions.

Environmental Regulations and Sustainability

As consumers become more eco-conscious, there is increasing pressure on furniture manufacturers to adopt sustainable practices. This includes using renewable materials, reducing waste, and minimizing carbon footprints.

• The Chinese government has introduced stricter environmental regulations for the furniture industry, encouraging the use of sustainable materials and energy-efficient manufacturing processes.
• The demand for environmentally friendly furniture is expected to increase, with consumers increasingly seeking products that align with their values of sustainability.

Furniture companies will need to invest in sustainability initiatives to stay competitive in the market and meet regulatory requirements.

Future Outlook for China’s Furniture Industry

The furniture industry in China is expected to continue its strong growth trajectory, driven by urbanization, rising incomes, and changing consumer preferences. The market will continue to evolve, with growing demand for premium and eco-friendly furniture, increased online shopping, and innovations in design and technology.

• The residential furniture segment will remain the largest market driver, with increasing demand for high-quality, stylish products that cater to urban lifestyles.
• E-commerce will continue to expand, with more consumers turning to online platforms to purchase furniture, taking advantage of convenience and a wider product selection.

With continued growth, technological innovation, and changing consumer demands, China’s furniture market is poised to remain a key player in the global furniture industry.