2022
9
UK Living and Dining Room Furniture Market Report 2022
2022-12-20T03:08:53+00:00
OX1100547
2195
158746
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Report
en_GB
“After experiencing a recovery during 2021, the short-term outlook for those involved with living and dining room furniture is expected to be challenging. Both expenditure and a propensity to purchase…

UK Living and Dining Room Furniture Market Report 2022

£ 2,195 (Excl.Tax)

Report Summary

“After experiencing a recovery during 2021, the short-term outlook for those involved with living and dining room furniture is expected to be challenging. Both expenditure and a propensity to purchase high-ticket items will be impacted. In surviving such challenges, a focus on value and exploitation of trends such as online demands and sustainability should be considered.”

– Neil Mason, Retail Category Director, November 2022

Key issues covered in this Report:

  • The impact of COVID-19, and more recently the cost-of-living crisis, on the market for living and dining room furniture.
  • Opportunities and new demand from this disruption.
  • The impact of this on the retailing landscape.
  • Consumer preferences towards expenditure and interest in particular types of living and dining room furniture as well as sources of information and attitudes towards furniture.

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
        • Executive Summary

            • The five-year outlook for living and dining room furniture
              • Figure 1: Living and dining room furniture* outlook, 2022-27
            • The market
              • Market size and forecast
                • Figure 2: Expenditure on living and dining room furniture*, revenues, 2017-27
              • Furniture for the living room is by far the largest market
                • Figure 3: Segmentation of the living and dining room furniture market, by value, at current prices, 2021
              • Pandemic boosts the profile of pureplay online retailers
                • Figure 4: Estimated channels of distribution for living and dining room furniture, by value, 2017 and 2021
              • Government intervention helps maintain crucial housing market
                • Figure 5: Monthly UK residential property transactions, 2021-22
              • Companies and brands
                • Traditional retailers are suffering increased pressure from online
                  • Investment as a way of strengthening resilience is proving popular
                    • Retailers respond to market pressures with different strategies
                      • Confidence fails to return to advertising budgets post-COVID
                        • Figure 6: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, 2017-22
                      • The consumer
                        • Open-plan layouts for kitchens, living and dining rooms are popular
                          • Figure 7: Type of living room, 2022
                        • Separate dining spaces most likely to be associated with older adults
                          • Figure 8: Type of dining room, 2022
                        • Income has a major impact on amount spent on furniture
                          • Figure 9: Expenditure on living and dining room furniture, 2022
                        • As sales soften retailers need to focus on where the strongest opportunities exist
                          • Figure 10: Living and dining room furniture purchases, by room, 2022
                        • Young adults are an important market for multiple purchases
                          • Figure 11: Living and dining room furniture purchases, by product, 2022
                        • Popularity of different channels of communication apparent by age
                          • Figure 12: Information on living and dining room furniture, by source, 2022
                        • Addressing the issue of value is key for younger consumers
                          • Figure 13: Attitudes towards living and dining room furniture, 2022
                      • Issues and Insights

                        • Recession set to blunt growth prospects
                          • Good potential to exploit opportunities with young buyers
                            • Key items of living and dining room furniture remain in vogue
                            • Market Size and Performance

                              • Consumer expenditure set to fall as UK enters recession
                                • Recent expenditure has been stronger than pre-pandemic levels
                                  • Figure 14: Market size for living and dining room furniture*, 2017-22
                              • Market Forecast

                                • Demand set to suffer as UK enters recession
                                  • Figure 15: Living and dining room furniture* outlook, 2022-27
                                • Expenditure is set to soften during 2023…
                                  • …with uncertainty persisting
                                    • Flexible purchasing and sustainability set to colour consumer thinking
                                      • Furniture will face competition from other demands
                                        • Retail sales fall back during 2022
                                          • Figure 16: Expenditure on living and dining room furniture*, revenues, 2017-27
                                        • Home office is likely to benefit from working from home
                                          • Learnings from the last economic slowdown
                                              • Figure 17: The living and dining room furniture market, by value, 2007-12
                                            • Forecast methodology
                                            • Market Segmentation

                                              • Over half of consumer expenditure is directed towards upholstery
                                                • Figure 18: Segmentation of the living and dining room furniture market, by value, at current prices, 2021
                                              • Communal living boosts products such as upholstery…
                                                • …while at the same time impacting on the dining sector
                                                  • Upholstery sales up at £5 billion
                                                    • Figure 19: Segmentation of the living and dining room furniture market, by value, at current prices, 2017-22
                                                  • Price competition impacts on the upholstery sector
                                                    • Figure 20: Segmentation of the living and dining room furniture market, by value, at current prices, 2017 and 2022
                                                • Channels to Market

                                                  • Online specialists strengthen share of the market
                                                    • Category specialists and general furniture retailers are under pressure
                                                      • Revitalised high street category sees winners and losers
                                                        • Figure 21: Estimated channels of distribution for living and dining room furniture, 2017 and 2021
                                                    • Market Drivers

                                                      • Inflation is the key concern for consumers and brands…
                                                        • …and despite government support, energy prices are still a major concern
                                                          • Rising interest rates mean that the pressure will move up to middle- and higher-income households
                                                            • High inflation and rising interest rates will weigh down the post-COVID recovery
                                                              • Consumer spending power will be curbed
                                                                • Unemployment is at a near-50 year low
                                                                  • Consumers’ financial wellbeing has fallen from the highs of 2021…
                                                                    • Figure 22: Household financial wellbeing index, 2016-22
                                                                  • …and most people are feeling the effects of price rises
                                                                    • Inflationary pressures and negative growth set to deliver short-term shock to the economy
                                                                      • Figure 23: Real GDP and RPI forecasts, 2022-27
                                                                    • Government interventions to stimulate the housing market
                                                                      • Figure 24: Monthly UK residential property transactions, 2021-22
                                                                    • Households expand 6.3% over the past decade
                                                                      • Figure 25: Number of UK households, 2011-21
                                                                    • Fall in profile of renters has potential to boost home expenditure
                                                                      • Figure 26: England housing tenure, 2010/11-2020/21
                                                                    • Different property styles will affect both furniture choice and demand
                                                                      • Figure 27: Type of dwelling lived in, 2022
                                                                    • Demand for credit expands during 2022
                                                                      • Figure 28: Consumer credit excluding student loans, January 2021-September 2022
                                                                  • Market Share

                                                                    • DFS Furniture proving successful in taking on IKEA
                                                                      • Online sellers continue to make gains
                                                                        • Sluggish performance for other specialists
                                                                          • General homeware retailers outperform department stores
                                                                            • Figure 29: Estimated market shares of the living and dining room furniture market, 2017-21
                                                                        • Launch Activity and Innovation

                                                                          • IKEA gets Kreativ with new virtual reality app
                                                                            • Figure 30: IKEA Kreativ, 2022
                                                                          • Quality and value from John Lewis as cost-of-living crisis and online growth are addressed
                                                                            • IKEA using store capacity to assist with demand for online purchasing
                                                                              • Ethics move up the agenda
                                                                                • Figure 31: DFS Vegan furniture range, 2022
                                                                            • Competitive Strategies

                                                                              • Addressing the issue of sustainability
                                                                                • Believing in the physical retail experience
                                                                                  • Focusing on value during the current cost of living crisis
                                                                                    • Diversification to maximise opportunities
                                                                                      • Continuing investment in digital technology
                                                                                      • Advertising and Marketing Activity

                                                                                        • Investment fails to recover after collapse in 2020
                                                                                          • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, 2017-22
                                                                                        • Support during 2021 was broadly spread throughout the year
                                                                                          • Figure 33: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, by month, 2020 and 2021
                                                                                        • DFS dominates despite spend falling back
                                                                                          • Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure on living and dining room furniture, by advertiser, 2017-21
                                                                                        • Television strengthens its position as interest in press advertising wanes
                                                                                          • Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure on living and dining room furniture, by media type, 2017 and 2021
                                                                                        • Nielsen Ad Intel coverage
                                                                                        • Types of Living Space

                                                                                          • Two thirds of homes have a separate living room
                                                                                            • Figure 36: Type of living room, 2022
                                                                                          • Open-plan kitchen and living room favoured by city dwellers
                                                                                            • Older adults more likely to have a separate living room
                                                                                              • Most dining is done in combined spaces
                                                                                                • Figure 37: Type of dining room, 2022
                                                                                              • Older adults also more likely to have a separate space for dining
                                                                                                • Less wealthy most likely to not have a dining room
                                                                                                • Expenditure on Living and Dining Room Furniture

                                                                                                  • Only six in 10 adults spent money in the last year
                                                                                                    • Figure 38: Expenditure on living and dining room furniture, 2022
                                                                                                  • Young adults are most likely to have bought furniture…
                                                                                                    • …with older adults a challenging opportunity
                                                                                                      • Improvements are needed to encourage rural buyers
                                                                                                        • Less affluent are an important group for smaller purchases
                                                                                                          • New homeowners represent the best opportunities
                                                                                                            • Figure 39: Expenditure on living and dining room furniture, by time in home, 2022
                                                                                                          • Apartment dwellers are likely to spend less
                                                                                                            • Figure 40: Expenditure on living and dining room furniture, total versus flat/apartments, 2022
                                                                                                        • Living and Dining Room Furniture Purchases

                                                                                                          • Living rooms dominate consumer interest
                                                                                                            • Figure 41: Living and dining room furniture purchases, by room, 2022
                                                                                                          • Products associated with relaxation and dining dominate
                                                                                                            • Figure 42: Living and dining room furniture purchases, by product, 2022
                                                                                                          • Relaxation is a priority for the young…
                                                                                                            • …while dining furniture is sought by wealthier households
                                                                                                              • Repertoire analysis supports multiple demands from young adults
                                                                                                                • Certain items of furniture are popular with those living in flats and apartments
                                                                                                                  • Figure 43: Expenditure on living and dining room furniture, total versus flat/apartments, 2022
                                                                                                                • Sofas are a key purchase for those who have a new home
                                                                                                                  • Figure 44: Expenditure on living and dining room furniture, total versus those less than a year in their current home, 2022
                                                                                                                • Most major items of furniture have benefited from a recent uptick in purchasing
                                                                                                                  • Figure 45: Living and dining room furniture purchases, by product, percentage point change in purchasing, 2020-22
                                                                                                              • Information on Living and Dining Room Furniture

                                                                                                                • Retailers are key sources for information
                                                                                                                  • Figure 46: Information on living and dining room furniture, by source, 2022
                                                                                                                • Social media interest polarised towards young adults…
                                                                                                                  • …as retailers’ websites present the best prospects for older adults
                                                                                                                    • Professionals have an opportunity to be instructors
                                                                                                                    • Attitudes towards Living and Dining Room Furniture

                                                                                                                      • Expenditure is set to fall despite importance of living and dining space
                                                                                                                        • Figure 47: Attitudes towards living and dining room furniture, 2022
                                                                                                                      • Families are likely to be seeking out value
                                                                                                                        • Multipurpose living is here to stay
                                                                                                                          • Young adults want something different
                                                                                                                            • Continuing interest in homeworking
                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                • Abbreviations
                                                                                                                                  • Consumer research methodology
                                                                                                                                  • Appendix – Forecast Methodology

                                                                                                                                    • Market forecast and prediction intervals
                                                                                                                                      • Figure 48: Market forecast and prediction intervals for living and dining room furniture, 2022-27
                                                                                                                                    • Market drivers and assumptions
                                                                                                                                      • Forecast methodology

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