Furniture - Vietnam

Vietnam

In Vietnam, the revenue in the Furniture market is projected to reach €1,252.00m in 2024.
It is anticipated that the market will experience an annual growth rate of 2.54% (CAGR 2024-2029).
The largest segment within the market is the Living Room Furniture segment, which is expected to have a market volume of €424.80m in 2024.
When compared globally, in the United States generates the highest revenue in the Furniture market, amounting to €242bn in 2024.
In terms of per capita revenue, in Vietnam generates €12.58 per person in 2024, considering the total population figures.
Vietnam's furniture market is booming due to the country's competitive manufacturing costs and increasing demand for modern and affordable home furnishings.

Key regions: Worldwide, United States, China, India, Germany

Definition:

The Furniture market covers different movable objects designed to support various human activities such as sitting, sleeping, and storing items. These objects can include chairs, tables, beds, couches, and cabinets, among others. The design and layout of furniture can have a significant impact on the comfort and functionality of a space, making it an important aspect of interior design and home decor.

Structure:

The Furniture market is divided into seven segments:

The Living Room Furniture segment focuses on furnishings such as sofas, side tables, and media cabinets typically found in the living room. This segment is divided into the following subsegments: Seats & Sofas and Cabinets, TV Stands & Side Tables.
The Bedroom Furniture segment covers furnishings and other accessories used for sleeping and the storage of clothing and other personal items. This segment is divided into the following subsegments: Beds, Mattresses, Closets, Nightstands, & Dressers, and Bedding.
The Kitchen & Dining Furniture segment covers a diverse range of products that are used to meet people’s eating, food storage and preparation needs. This segment is divided into the following subsegments: Kitchenware and Dining Tables, Kitchen Islands & Pantries.
The Outdoor Furniture segment covers products specifically designed to withstand exposure to the elements, such as rain, sun, and wind, and is often made from materials that are weather-resistant.
The Home Office Furniture segment focuses on products that ensure a good working environment at home compared to that of a traditional office. This segment is divided into the following subsegments: Desks & Chairs and Bookcases & Filing Cabinets.
The Lamps & Lighting segment covers various devices and fixtures that provide illumination in a space. This segment is divided into the following subsegments: Table & Floor Lamps, Ceiling Lights & Chandeliers, and Light Bulbs & Fittings.
The Home Décor segment covers a variety of accessories and furnishings designed to make a space more aesthetically appealing. This segment is divided into the following subsegments: Decorations, Carpets & Rugs, Candles, and Curtains & Blinds.

Additional Information:

The Furniture market consists of revenue and average revenue per capita data. Per capita figures consider the whole population. This market includes only business to consumer (B2C) sales. Business to business (B2B) sales (e. g., furniture for coffee shops, offices, etc.) are excluded in the figures shown. For more information on the displayed data, click the info button on the right-hand side of each box. In terms of key players in the furniture market, IKEA is the leading furniture company; however, with the rise of eCommerce, players such as Wayfair are gaining ground.

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Analyst Opinion

The Furniture market in Vietnam has been experiencing significant growth in recent years, driven by various factors such as changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Vietnamese customers have shown a growing interest in furniture that combines functionality with modern design. They are increasingly looking for furniture that not only serves its purpose but also enhances the aesthetic appeal of their homes. This shift in preferences has led to an increased demand for contemporary and minimalist furniture styles. Additionally, customers are also placing a greater emphasis on sustainability and eco-friendly materials, driving the demand for furniture made from recycled or renewable materials.

Trends in the market: One of the key trends in the furniture market in Vietnam is the rise of e-commerce. With the increasing penetration of the internet and smartphones, more customers are opting to shop for furniture online. This trend has been further accelerated by the COVID-19 pandemic, as people are now more inclined to make purchases from the comfort and safety of their homes. As a result, furniture retailers are investing in their online presence and expanding their e-commerce capabilities to cater to this growing trend. Another trend that has been observed in the Vietnamese furniture market is the growing popularity of multifunctional furniture. As living spaces become smaller and more compact, customers are seeking furniture that can serve multiple purposes. For example, beds with built-in storage or sofa beds that can be converted into guest beds have become increasingly popular among urban dwellers. This trend is driven by the need to optimize space and make the most out of limited living areas.

Local special circumstances: Vietnam has a young and rapidly growing population, which is a significant factor contributing to the growth of the furniture market. As more young people enter the workforce and start their families, the demand for furniture increases. Additionally, rising disposable incomes and urbanization have also played a role in driving the growth of the furniture market in Vietnam.

Underlying macroeconomic factors: Vietnam has been experiencing robust economic growth in recent years, which has had a positive impact on the furniture market. The country's strong economic performance has resulted in increased consumer spending power, leading to higher demand for furniture. Furthermore, the government's efforts to attract foreign investment and promote manufacturing have also contributed to the growth of the furniture industry, as more companies set up production facilities in Vietnam. In conclusion, the furniture market in Vietnam is witnessing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As customers increasingly prioritize functionality, modern design, and sustainability, furniture retailers are adapting to meet these demands. The rise of e-commerce and the popularity of multifunctional furniture are also shaping the market. With a young and growing population, coupled with a strong economy, Vietnam presents a favorable environment for the furniture industry to thrive.

Methodology

Data coverage:

Data encompasses B2C enterprises. Figures are based on home furnishings and furniture found in every room of the home. This market is categorized by the room where the furniture is likely to be used and consists of the following: Living Room, Bedroom, Kitchen & Dining room, Outdoor, Home Office, and Baby & Children's Furniture. The Furniture market also includes Lamps and Lighting and Home Décor because the furnishings and accessories within these categories are not specific to any room.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use national statistical offices, international institutions, in-house market research, and resources from the Statista platform. Next we use relevant key market indicators and data from country-specific associations such as consumer spending and GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing is well suited for forecasting the Furniture market with a projected steady growth. The main drivers are furniture and furnishings, carpets and other floor coverings, and consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.