China Furniture Market
The furniture industry in China has undergone a dynamic change from traditional operations to technology driven industry over the last few years 2010-2015. The growth in the furniture industry in past decades was phenomenal and was quite evident through consistent surge in exports. In 2010, the China furniture market was valued at USD 40.9 billion which has increased to USD ~ billion in 2015 growing at a CAGR of ~% during the period. The furniture industry in China has been immensely driven by its ability to provide best quality furniture products at best affordable prices without compromising on the quality standards and low cost skilled workforce. With the substantial growth in the real estate industry, technology and increasing growth rate in tourism from ~% in 2011 to ~% in 2015 had led to inauguration of many new public and private construction projects, automation in the manufacturing process and increase in the number of hotels, bars & restaurants in country.
Additionally, China was recognized as the largest furniture exporter in the world and exported ~% of its production to other nations in 2015. Total furniture export value increased from USD ~ billion in 2010 to USD ~ billion in 2015 at a CAGR of ~% during the period. It has also been forecasted that the furniture market of China will increase at a CAGR of ~% during 2016-2020 to be valued at USD ~ million.
Residential Furniture Market
In Furniture industry, residential furniture market has dominated the domestic furniture industry with a share of ~% in 2015. The major reason attributed to the increase is availability of large variety of products in residential furniture product line than the number of products in non-residential furniture product line. Residential furniture products are offered at a broader price range which contributes to larger demand and results in higher percentage share to the revenue of domestic furniture market in China.
The residential furniture market had increased from USD ~ billion in 2010 to USD ~ billion in 2015, growing at a CAGR of ~% during the period. In China, an increasing number of consumers especially mid to high end consumer groups have been witnessed to embrace for new living concepts. These consumer groups have showcased their preferences towards environment-friendly furniture, such as odor and formaldehyde-free products, whose price tends to be higher than other furniture products. This has been the major reasons for elevation in Residential furniture demand in China. In residential furniture, Bed room furniture had dominated the market with share of ~% in overall residential furniture market followed by living room, dining room & kitchen furniture in 2015. Bed has contributed largely in terms of sales revenue in product category list of residential furniture segment. Other important categories are Sofa, Sofa Sets, Dining tables, Central Chairs and others. In residential sector, integrated furniture contributed to ~ % share in 2015 in terms of sales revenue. Wooden furniture and Metal furniture contributed ~ % and ¬~ % share respectively. The major contributor in revenues for residential furniture is southern province followed by eastern province, western province & northern province of China. It has been expected that the residential furniture market of China will increase at a CAGR of ~% during 2016-2020 to reach USD ~ million.
Parents in China have showcased rise in preferences for customized and ready to made furniture for their children, backed by improvement in living standards and surge in purchasing power among the Chinese population. Implementation of "selective two children" policy in 2013 and ~ million population of children aged 0-14 in 2014 has elevated the children's furniture market at USD ~ billion during 2015. Children furniture market had witnessed a tremendous growth rate in past few years. The market had increased at a CAGR of ~% during 2010-2015. The market had increased to USD ~ billion in 2015.
China online furniture industry had grown from USD ~ billion in 2010 to USD ~ billion in 2015. The online furniture Industry had increased at CAGR of ~% during 2010-2015. Rising urbanization had triggered the E-commerce industry in China. The number of internet users has increased from ~ million in 2011 to ~ million in 2015. The rise in e-commerce industry had contributed to the increase in the online furniture industry in China.
Non- Residential Furniture Market
Non- residential furniture market in China comprises of furniture products that are used in offices, hospitals, hotels, restaurants, shopping malls and other public places. In 2010, the non-residential market was worth USD ~ billion which had increased to USD ~ billion in 2015. The market had grown at a CAGR of ~% during 2010-2015. The growth in the hospitality sector and travel & tourism industry will enhance the structure of hotel industry in the country, which will lead to the growth of non-residential furniture market in China. Non-Residential furniture market was primarily guided through office and industrial furniture during 2015, which was followed by hotel and retail furniture. The other furniture market in non-residential segment encompasses hospital furniture, school college furniture and others. Customized based and contract based furniture plays an important role in Non-Residential sector. The star hotels, resorts, bars & restaurants mostly prefer customized furniture as the furniture can be designed as per their needs and it can be synced with the interiors. The other normal class hotels, bars, restaurant prefer contract based furniture over customized furniture as the customized furniture are expensive and they take more time for installation than contract based furniture. It has been forecasted that the non-residential furniture market will grow at a CAGR of ~% from 2016-2020 to be valued at USD ~ million in 2020.