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Outdoor Furniture Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global outdoor furniture products market is expected to reach USD 140 billion in 2023, growing at a CAGR of 4.5% during the forecast period. The growth of the market is driven by increasing demand for outdoor furniture products from the hospitality sector and growing awareness about the importance of outdoor furniture. Furthermore, the rising living standards of people and the growing trend of spending on home décor are resulting in the increasing demand for outdoor furniture products.
The increasing demand for modern designs and comfortable furniture is driving the market for outdoor furniture. Furthermore, the increasing popularity of modular furniture is driving the demand for outdoor furniture, as the modular furniture is easy to assemble, store, and transport. Additionally, the rising popularity of DIY (Do-It-Yourself) furniture is further driving the demand for outdoor furniture, as DIY furniture is easy to install and assemble, and can be customized as per the user’s requirements.
Furthermore, the increasing trend of spending on home décor is driving the demand for outdoor furniture. According to a survey by the American Home Furnishings Alliance, in June 2020, the average American household spent approximately $2,300 on home décor products. Moreover, the increasing trend of spending on luxury outdoor furniture products is further driving the growth of the market. The increasing number of resorts and hospitality sector is also driving the demand for outdoor furniture products.
In addition, the increasing demand for eco-friendly products is driving the demand for outdoor furniture made from recycled materials. For instance, in June 2021, Poly-Wood, a leading outdoor furniture company, launched a new line of outdoor furniture made from recycled plastic bottles. Furthermore, the increasing focus of the market players on enhancing the aesthetic appeal of outdoor furniture is further driving the market for outdoor furniture. For instance, in January 2021, Kettal launched a new outdoor furniture range inspired by the art of origami. The range features new seating and dining collections made up of woven fabrics and metal structures.
Product Insights
The patio furniture segment led the market and accounted for a share of around 34.2% in 2022. Increasing number of rooftop gardens, balconies, and patios has been driving the demand for outdoor furniture, globally. According to an article published by the National Gardening Association, in April 2020, the number of rooftop gardens has increased by 45% in the last 5 years. Furthermore, macro-level factors such as rising disposable income among consumers and mushrooming growth of distribution channels are bolstering the demand for outdoor furniture brands worldwide.
The outdoor furniture accessories segment is anticipated to expand at the fastest CAGR of 8.9% over the forecast period. Growing demand for outdoor furniture sets such as outdoor sofas, recliners, and sectionals, rising trends for outdoor furniture décor, and the emergence of various outdoor furniture accessories brands are some of the key factors driving the outdoor furniture accessories market growth revenue. According to an article published by the National Association of Home Builders, in March 2020, 62% of homeowners said they were likely to invest in outdoor furniture accessories in the next year. In addition, increasing awareness regarding the importance of outdoor furniture décor is another factor driving the growth of the market.
Distribution Channel Insights
The outdoor furniture products market is mainly driven by the retail stores segment which captured the largest market share of over 40.5% in 2022. This is mainly due to the presence of a wide range of furniture and accessories from leading brands in these stores which provides customers with a superior shopping experience. In addition, customers can view the product in person, touch and feel the texture, and compare the price of different products before making a purchase. Furthermore, the presence of retailers in both online and offline mediums is further driving the growth of the segment.
The online segment is anticipated to expand at the highest CAGR of 10.2% during the forecast period. The growth of the segment is mainly attributed to the rising trend of shopping through e-commerce websites and apps, which offers convenience and discounts on a wide range of products. Moreover, customers can view all the available products on a single platform, compare the prices & features of different products, and purchase the product that best suits their requirements. Furthermore, companies are launching their own e-commerce websites and apps to reach out to a larger base of customers.
Type Insights
The residential segment dominated the outdoor furniture market in 2022, accounting for a revenue share of 57.1%. The continuing demand for outdoor furniture from the residential sector is expected to remain consistent over the forecast period, owing to the increasing trend of outdoor living. The increasing trend of outdoor living has been further boosted by the recent covid-19 pandemic, which has kept people confined to their homes, leading to an increased demand for outdoor furniture.
The commercial segment is expected to grow at the highest CAGR of 11.2% over the forecast period. The increasing trend of outdoor dining and leisure activities in the commercial sector is anticipated to drive the growth of the segment. For instance, hotels, restaurants, and resorts prefer outdoor furniture to increase the attractiveness of their establishment. Moreover, the increasing trend of urbanization is expected to further drive the demand for outdoor furniture in the commercial sector.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 34.9% in 2022. This is attributed to the fact that many European countries have favorable climatic conditions for outdoor activities. This has increased the popularity of outdoor activities among consumers, which in turn has led to an increase in the demand for outdoor furniture. Furthermore, the presence of prominent players, such as IKEA, Keter, and Gloster Furniture, is further contributing to the growth of the market.
North America is expected to be the second largest market in the coming years. The growing preference among consumers for outdoor living is expected to drive the demand for outdoor furniture in this region. Furthermore, the presence of prominent players in the region, such as Trex, Home Depot, and Walmart, is further contributing to the growth of the market. Additionally, the rising popularity of outdoor recreation activities, such as camping, hiking, and fishing, is further expected to increase the demand for outdoor furniture in the region.
Financial Projections
In this part of the outdoor furniture products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your outdoor furniture products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an outdoor furniture products business comes from direct sales, wholesale sales, retail sales, and the sale of related products or services. Here you will find a list with a description of each of them and other possible sources of profit such as online sales, subscription services, and third-party sales.
Projecting Expenses
In this section, all the regular expenses related to keeping the outdoor furniture products business running will be described. The list of operating expenses includes materials and supplies, wages, rent, insurance policies, advertising, taxes, web hosting, and others.
Key companies & market share insights
Some of the key companies operating in the outdoor furniture market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, IKEA launched the STOCKHOLM series of outdoor furniture, which includes chairs and tables.
– In September 2022, Home Depot launched the Westwood collection of outdoor furniture, which includes tables, chairs, and loungers.
– In October 2022, Walmart launched the outdoor furniture collection, which includes a variety of chairs and tables.
Some of the prominent players in the outdoor furniture market include:
– IKEA
– Home Depot
– Walmart
– Wayfair
– Target
– Lowe’s
– Crate & Barrel
– Pier 1 Imports
– Ashley Furniture Industries
– RH
Global Outdoor Furniture Market Segmentation
This report forecasts 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 products market based on product, material, application, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Chairs
– Tables
– Benches
– Loungers
– Others
2. Material Outlook (Revenue, USD Million, 2017 – 2030)
– Wood
– Plastic
– Metal
– Wicker
– Others
3. Application Outlook (Revenue, USD Million, 2017 – 2030)
– Residential
– Commercial
– Hospitality
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What Factors are driving the market for Outdoor Furniture?
[A]: The increasing demand for outdoor furniture products is driven by an increase in the number of people spending more time outdoors due to the COVID-19 pandemic. Additionally, increasing disposable income and the desire for people to create better outdoor spaces for entertaining, relaxation and socializing are driving the market growth.
[Q]: Who are the Key Players in the Outdoor Furniture Market?
[A]: Some of the key players operating in the outdoor furniture market include Brown Jordan International Inc., Keter Plastic Ltd., Kingsley-Bate, LLC, Hanamint Corporation, Royal Botania, Gloster Limited, Agio International Co., Inc., Grosfillex, Inc., and SunVilla Home Furnishings, Inc.
[Q]: What is the Potential for Product Innovation?
[A]: Product innovation is one of the major factors contributing to the growth of the outdoor furniture market. Companies are introducing new products with innovative designs, materials, and technologies to meet the ever-changing customer preferences. Additionally, the use of advanced materials such as metals, plastics, and alloys are contributing to the development of high-performance outdoor furniture.
[Q]: Which Region Offers the Largest Opportunity for Sales of Outdoor Furniture?
[A]: North America is expected to be the largest regional market for outdoor furniture products, with an absolute dollar opportunity of $7.51 B (USD). This is attributed to the presence of key players in the region, increasing disposable income and a shift towards outdoor living.
[Q]: What are the Recent Trends in the Outdoor Furniture Market?
[A]: Companies are introducing furniture with advanced features such as multi-functionality, water resistance, and portability to meet the changing needs of customers. Additionally, the growing popularity of online shopping and the introduction of new products with advanced technologies are some of the key trends in the industry.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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