The European furniture industry is entering a new era of growth and innovation, with the market projected to reach USD 387 billion by 2034, rising from USD 251.6 billion in 2024, according to a new report by Market.us. The study forecasts a compound annual growth rate (CAGR) of 4.4% over the next decade, driven by sustainability, digital transformation, and evolving consumer lifestyles.
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Sustainability leads market transformation
Environmental responsibility has become a defining feature of the European furniture market. The report highlights that 89% of UK consumers consider sustainability and ethical practices important when purchasing furniture or homeware. Manufacturers across the continent are responding by investing in eco-certified materials, recyclable designs, and circular production models.
"European buyers are not just seeking furniture; they're seeking values," the report notes, adding that eco-friendly production and traceable sourcing have become competitive necessities rather than optional add-ons.
E-commerce and digital integration accelerate growth
The rise of online furniture retail continues to reshape the market. Nearly one in five EU internet users purchased furniture or home accessories online in 2024. Retailers are enhancing customer experience through augmented reality (AR) and virtual visualization tools, allowing consumers to preview designs in their homes before purchase.
Direct-to-consumer (D2C) furniture brands are gaining ground, offering personalized, affordable, and fast-delivery options that appeal to younger demographics.
Key market segments
- Material: Wood remains the most preferred material, commanding 49.2% of the market share in 2024, followed by metal, plastic, and hybrid composites.
- Category: Indoor furniture leads with 78.3%, fuelled by home renovation and décor trends.
- End-use: Residential furniture dominates at 59.5%, supported by urban housing development and the rise of modular interior solutions.
Emerging design trends
The study points to the growing influence of Scandinavian and minimalist aesthetics, emphasising clean lines, neutral tones, and multi-functional design. Compact living spaces across Europe are fuelling demand for smart and modular furniture, including convertible sofas, foldable tables, and built-in storage systems.
The circular economy model is also gaining traction, with brands introducing refurbishment programs and furniture rental or subscription services—such as NORNORM, which recently secured €50 million to expand its sustainable office furniture platform.
Leading players and industry moves
European icons including Roche Bobois, BoConcept, B&B Italia, Poltrona Frau, and IKEA continue to set the pace. IKEA's parent, Ingka Group, recently announced a €1.5 billion investment to eliminate fossil fuels and strengthen circular operations across its European network. Meanwhile, materials innovator PaperShell AB is driving change with cellulose-based composites that replace traditional plastics.
Challenges ahead
Despite positive momentum, the market faces headwinds. Volatile raw material prices, stringent environmental regulations, and competition from low-cost imports are squeezing margins. Supply chain instability across borders adds further uncertainty.
Still, analysts remain optimistic. "Europe's furniture market is evolving into a benchmark for sustainable and smart design," the report concludes. "Brands that blend craftsmanship with digital innovation are well positioned for the decade ahead."
More information:
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