The global RTA furniture products market was valued at USD 28.2 billion in 2022 and is projected to expand at a CAGR of 6.3% from 2023 to 2030. The demand for RTA furniture products is expected to increase in the coming years due to the rising preference for multi-functional and modular furniture. RTA furniture products are one of the most popular options as they are easy to assemble and disassemble, and are relatively cheaper than the traditional furniture. The rising trend of urbanization and the increasing number of nuclear families are stimulating the demand for RTA furniture products. Furthermore, the growing demand for small-scale furniture and the increasing focus on aesthetics is likely to drive the market growth.

Furthermore, the increasing number of collaborations between market participants and e-commerce platforms is driving the growth of the market. For instance, in June 2021, Ikea, the largest RTA furniture manufacturer, announced its partnership with Flipkart, India’s leading e-commerce platform, to help customers access a wider range of products. This partnership is expected to open new avenues for the company in the market.

Given the growing demand for lightweight and durable furniture products, market participants are focusing on introducing new products in the market. For instance, in January 2022, Eureka launched two new styles of RTA furniture called Dutiful and Dutiful X. The new products are made of lightweight materials, such as aluminium and micro-suede, and are designed for easy storage and transportation. The company also offers a variety of colors and finishes for these products, which makes them attractive to the consumers.

In addition, the rising trend of smart homes is expected to propel the demand for RTA furniture products. The growing demand for connected home furniture, such as tables, chairs, sofa sets, and desks, is boosting the market growth. Furthermore, the increasing number of RTA furniture products with IoT-enabled features is expected to fuel the demand for these products in the coming years. For instance, in October 2021, the Chinese furniture company, U-Home, launched a smart table with a built-in projector, Bluetooth speakers, and a selection of apps. This innovative product is expected to attract more customers in the RTA furniture products market.

The ready-to-assemble (RTA) furniture segment led the market and accounted for a share of around 39.8% in 2022. The growing popularity of RTA furniture is attributed to its convenience and low cost. According to an article published by Business Insider, in April 2020, RTA furniture is becoming increasingly popular as it’s more affordable than custom furniture, is easier to transport and assemble, and can save people time. Furthermore, an increase in the number of online furniture stores and the availability of RTA furniture in a variety of colors, styles, and materials are some of the major factors driving the demand for these products.

The office furniture segment is anticipated to expand at the fastest CAGR of 8.2% over the forecast period. Growing demand from corporate offices, rising trend of working from home, and increasing adoption of modular office furniture are some of the key factors driving the market growth. According to an article published by Wonder Works, in August 2020, modular office furniture is becoming increasingly popular due to its modern and stylish designs, and its ability to be easily reconfigured and adjusted according to the changing needs of the office. In addition, rising demand for ergonomic office furniture is another factor driving the growth of the market.

The retail stores segment held a major market share of over 47.2% in 2022. The segment is further divided into independent furniture stores, departmental stores, and retail chains. The growth of the segment is mainly driven by the increasing number of retail stores in the region. According to a survey by Statista in 2020, the number of retailers increased from 6.8 million in 2016 to 7.2 million in 2020. In addition, the growing demand for ready-to-assemble (RTA) furniture is driving the growth of the segment. RTA furniture provides customers with easy-to-assemble options and convenience, as it requires minimal time to assemble and can be moved easily.

The e-commerce segment is anticipated to expand at the highest CAGR of 13.4% over the forecast period. The growth of the segment is mainly driven by the growing penetration of the internet and the increasing availability of RTA furniture on online platforms. According to a survey by Statista in 2020, the number of internet users in the US increased from 244 million in 2016 to 282 million in 2020. Moreover, online stores offer discounts, convenience, and a wide variety of products, which is driving the growth of the segment.

The flat-pack segment accounted for the largest revenue share of 77.5% in the year 2022. The increasing trend of apartment living and the rising demand for compact homes are the primary drivers for the segment. The efficient packaging and easy assembly of flat-pack furniture are playing a significant role in boosting the demand for RTA furniture. Moreover, the availability of flat-pack furniture in different colors, sizes, and shapes is also driving the segment’s growth.

The pre-assembled segment is expected to expand at the highest CAGR of 10.3% over the forecast period. The pre-assembled RTA furniture usually requires no assembly and is easy to use. These features attract customers who do not want the hassle of assembling the furniture. Moreover, the availability of pre-assembled RTA furniture in various designs and styles is driving the segment’s growth.

Europe is expected to hold the largest market share in the near future. This growth is attributed to the presence of several world-renowned furniture brands, such as IKEA, HOMESENSE, and FRENCH CONNECTION. Furthermore, the region has witnessed substantial growth in the online furniture market. This growth is driven by the increasing trend of e-commerce and the emergence of online furniture stores. In addition, countries in Europe such as the UK and Germany have experienced a surge in demand for ready-to-assemble (RTA) furniture due to its convenience and lower cost.

Asia Pacific is expected to witness the highest growth in the coming years. This growth is mainly attributed to the presence of numerous local manufacturers in the region. Furthermore, the region has witnessed a rise in disposable income, which has led to the increasing adoption of RTA furniture products among the middle-class population. Furthermore, the increasing population in the region has led to the emergence of new markets, such as India, which is driving the growth of the RTA furniture market.

In this part of the RTA 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 RTA Furniture Products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for an RTA Furniture Products business comes from the sale of furniture products. Other possible sources of profit include shipping and handling fees, warranty and repair services, product customization, and other services related to the sale of furniture products.

Projecting Expenses
In this section, all the regular expenses related to keeping the RTA Furniture Products business running will be described. The list of operating expenses includes wages, overhead costs, rent, utilities, insurance policies, advertising, and others. Additionally, expenses for manufacturing and purchasing furniture products, as well as shipping and handling expenses, must be taken into account.

Some of the key companies operating in the Ready-To-Assemble (RTA) 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 July 2022, IKEA launched the SLATTUMU collection of bedroom furniture including beds, bedside tables, and dressers.

– In August 2022, Wayfair launched the PERFECTLY PLANNED collection of office furniture including desks, bookcases, and filing cabinets.

– In September 2022, Walmart launched the BEDROOM IN A BOX collection of bedroom furniture including beds, nightstands, and dressers.

Some of the prominent players in the RTA furniture market include:

– IKEA
– Wayfair
– Walmart
– Target
– Amazon
– Overstock
– Home Depot
– Lowe’s
– Ashley Furniture Industries
– Sauder Woodworking Co.

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 RTA furniture products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Bedroom Furniture
– Living Room Furniture
– Kitchen Furniture
– Office Furniture
– Outdoor Furniture

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Offline
– Online

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Standard
– Customized

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Major Drivers of the RTA Furniture Market?
[A]: The major drivers of the RTA furniture market include the increasing demand for convenience and aesthetics, growing disposable incomes across major countries, growing urbanization and the associated change in lifestyle choices, and the increasing popularity of online shopping for furniture. Furthermore, the increasing disposable income of individuals leading to higher spending on RTA furniture and the increasing trend of customization of furniture are expected to drive the growth of the RTA furniture market during the forecast period.

[Q]: Who are the Key Players in the RTA Furniture Market?
[A]: The key players in the RTA furniture market include IKEA, Alibaba Group, Wayfair Inc., Havertys, Ashley Furniture Industries, Inc., Home Depot, Walmart, Target, and Kmart.

[Q]: What are the Trends in the RTA Furniture Market?
[A]: The trend in the RTA furniture market is the increasing focus on sustainability, with manufacturers focusing on creating RTA furniture made from eco-friendly materials and offering customization options. Additionally, manufacturers are focusing on developing products that are easy to assemble and install, as well as on expanding the product portfolio by adding new products to meet the changing customer preferences.

[Q]: What are the Opportunities in the RTA Furniture Market?
[A]: The opportunities in the RTA furniture market include product differentiation through customization, introduction of new and innovative furniture designs, and expansion of product portfolio to meet the changing customer needs. Additionally, partnerships and collaborations with online retailers and e-commerce platforms are expected to create potential growth opportunities for the RTA furniture market during the forecast period.