10 Key Furniture Manufacturing Trends for 2021

AUSTIN, Texas - April 23, 2021 - PRLog -- We take a look at the 10 most important trends that will drive the industry forward in 2021.

Trend 1: Office Furniture Sales Shift Away From Traditional Office Lines To Meet Demand For Work From Home And Residential-Oriented Products

The Coronavirus pandemic hit the $12.5 billion office furniture business especially hard in the past year as many office customers shut their doors in favor of allowing their employees to Work from Home.

Not all furniture market segments suffered as much of a downturn as office furniture, however; for example, laboratory furniture sales have maintained momentum thanks to increased investment in biotech research and clinical testing laboratories.

But the big breakout sales star has been residential-oriented furniture products, as employees upgraded their home office environments to make them more productive and functional, and renovated their living quarters (including outdoor areas) to make them a more comfortable environment for enjoying many months of "lockdown."

Analysts at Quintana Research and Consulting predict the global home office furniture market segment will see compound annual growth rates of around 7.5% during 2020-2026 – which points to the long-lasting impact of the WFH trend.

Trend 2: E-Commerce Sales Take Off As Augmented Reality And Visualization Tools Assist In Furniture Product Personalization And Purchasing Decision

According to Statistica, e-commerce revenue will reach $2.7 trillion in 2021, with the average user spending just over $700 annually.

Overall, E-commerce CAGR is projected to increase by 6.29% between now and 2025. And user penetration will also grow substantially – from an estimated 50.8% of shoppers using e-commerce today to more than 63% by 2025.

Many analysts point to the Coronavirus lockdown over the past year as one of the reasons major e-commerce giants have grown so spectacularly over the past year – Amazon's revenue is nearing $400 billion, Walmart's revenue is north of $550 billion, and Ikea's parent holding company reports revenue of over $45 billion.

The rapid update of e-commerce sales in the home furnishings market is causing quite a few retail companies to restructure their operations.

For example, at Williams Sonoma (whose customer-facing brands include Williams Sonoma, Pottery Barn, and West Elm), president and CEO Laura Alber recently announced in an earnings conference call that "E-commerce accelerated sequentially to a record net comp of over 49%, and we were pleased to see our store performance improved throughout the quarter to a net negative 11% comp. Even more encouraging is the retail demand comp at negative 4%."

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