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Executive Summary
- Opportunities for the furniture market
- Consumers are still keen to spend…
- … with stores strengthening confidence
- Second-hand furniture makes further inroads
- Health and wellbeing poised to gain from the recovery of consumer confidence
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- The worst is likely behind
- Living and dining furniture continues to take the lead
- Store-based specialists continue to take the lion’s share
- Graph 1: estimated channels of distribution for furniture, 2022 and 2023
- Housing market sees signs of recovery
- Graph 2: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-24
- Caution in the market continues
- Graph 3: “Do you think the UK cost of living crisis is….”, 2024
- But households remain more positive about their financial prospects
- Graph 4: the financial confidence index, 2016-24
- What consumers want and why
- A gradual shift away from smaller-basket spending
- Graph 5: furniture expenditure, 2022-24
- Living room reclaims the top position
- Graph 6: rooms purchased for, 2021-24
- Online continues to be the primary purchase channel
- Graph 7: channels of purchase, 2019-2024
- IKEA is the clear market leader
- Graph 8: retailers used, 2024
- Overall satisfaction with individual elements of the purchase is high
- Graph 9: elements of satisfaction with retailers last used for furniture purchase, 2024
- Consumers look for ways to stretch their money
- Graph 10: furniture buying behaviours, 2024
- Cautious spending continues
- Graph 11: furniture spending intention, 2024
- Almost two thirds would want to have an input in furniture features
- Graph 12: furniture interests, 2024
- Retailer activity
- Lowering the barrier to purchase
- Leveraging technology to streamline online shopping
- Adspend falls from 2023 high
- Graph 13: total above-the line, online display and direct mail advertising expenditure on furniture, 2020-23
- IKEA at the top of its game
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Market Dynamics
- Market size
- The market continues to struggle
- Graph 14: consumer spending on furniture, 2019-24
- Demand grows increasingly polarised
- Market forecast
- Uncertainty remains ahead
- But the worst is likely behind
- Market segmentation
- Living and dining furniture continues to take the lead
- Channels to market
- Store-based specialists continued to take the lion’s share
- Graph 15: estimated channels of distribution for furniture, 2022 and 2023
- Macro-economic factors
- Inflation is on the wane
- Graph 16: annual rate of inflation, CPI & household furniture, 2023-24
- Wages have risen ahead of prices for almost a year
- Graph 17: real wage growth, annual % in wage growth vs inflation, 2020-24
- Interest rates expected to fall in 2024, but borrowing pressures will remain
- Housing market sees signs of recovery
- Graph 18: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-24
- Home ownership edges up
- Graph 19: England housing tenure, 2018/19-22/23
- Consumer sentiment
- Consumer sentiment: the recovery has slowed
- Graph 20: the financial wellbeing index, 2016-24
- Households remain more positive about the prospect for their finances
- Graph 21: the financial confidence index, 2016-24
- Caution in the market continues
- Graph 22: “Do you think the UK cost of living crisis is….”, 2024
- Most consumers expect to spend the same across multiple categories in 2024
- Graph 23: spending expectations for 2024 compared to 2023
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What Consumers Want and Why
- What they spend
- Engagement levels on the rise
- A gradual shift away from smaller-basket spending
- Graph 24: furniture expenditure, 2021-24
- More people spend over £500 on furniture than under
- Instalment methods enable consumers to take on bigger-ticketed projects
- Graph 25: payment methods used on home purchasing, 2023
- Purchasing activity led by more affluent consumers…
- Graph 26: furniture spending in excess of £500 in the past year, by household income, 2023-24
- … and first-time home buyers
- Graph 27: furniture purchasing activity, by age, 2023-24
- Renters become keener to invest…
- Graph 28: furniture expenditure by private renters, 2021-24
- … as do city dwellers
- Graph 29: furniture expenditure of £500 or over, by area, 2022-24
- Rooms they buy for
- Living room reclaims the top position
- Graph 30: rooms purchased for, 2021-24
- Bedroom is the priority for new movers
- Graph 31: rooms purchased for, by time in current home, 2024
- Space dictates furniture spending
- Graph 32: rooms purchased for, by description of current home, 2024
- An uptick in multiple room purchases
- Graph 33: repertoire analysis of rooms purchased for, 2023 and 2024
- How they buy furniture
- Online continues to be the primary purchase channel…
- Graph 34: channels of purchase, 2019-24
- … with websites most popularly used
- Graph 35: channels of purchase, 2023-24
- Online shopping grows in appeal with affluent shoppers…
- Graph 36: online purchasing, by household income, 2023 and 2024
- … while the opposite is true with in-store shopping
- Graph 37: in-store purchasing, by household income, 2023 and 2024
- In-store shopping becomes increasingly convenient
- Stores are preferred for bigger-basket purchases
- Almost three in five in-store shoppers spend at least £500
- Where they shop for furniture
- Specialists are the most popular destination
- IKEA is the clear market leader
- Graph 38: retailers used, 2024
- Zara Home stands out with young and affluent shoppers
- Graph 39: retailers used, by age and household income, 2024
- Nearly half buy from at least two retailers
- Graph 40: repertoire analysis of store-based retailers used, 2024
- Amazon the top pureplay retailer
- Graph 41: online retailers used, by age and household income, 2024
- Satisfaction with furniture purchases
- The majority are satisfied with their latest furniture purchase
- Overall satisfaction with individual elements of the purchase is high
- Graph 42: elements of satisfaction with retailers last used for furniture purchase, 2024
- Key driver analysis of satisfaction
- Customer service is an area of improvement
- Lower earners show less satisfaction towards product price
- Graph 43: elements of satisfaction with retailers last used for furniture purchase (any satisfied), by household income, 2024
- Satisfaction levels vary by age
- Graph 44: elements of satisfaction with retailers last used for furniture purchase (any satisfied), by age, 2024
- Shopping experience and customer service could serve as USP for stores
- Graph 45: elements of satisfaction with retailers last used for furniture purchase (any satisfied), by channels of purchase, 2024
- Satisfaction scores for leading retailers
- Graph 46: elements of satisfaction with retailers last used for furniture purchase (any satisfied) with leading retailers, 2024
- Furniture buying behaviour
- Repair as a way to stretch money
- Second-hand furniture makes further inroads
- Graph 47: second-hand buying behaviours, 2024
- Authentication service to boost second-hand shopping
- Most social media posts about second-hand furniture are positive
- Pre-loved furniture initiatives
- The market for renting remains small
- Transparency could boost the purchase of sustainably made furniture
- Almost two thirds would want to have an input in furniture features
- Cautious spending continues
- Graph 48: furniture spending intention, 2024
- Future spending intention
- Bedroom is high on the agenda
- Graph 49: rooms intended to buy for, 2024
- Quality is the priority
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Retailer activity
- Leading specialists
- IKEA continues to deliver robust performance
- Revenue growth in negative territory for many
- Leading specialists: revenues
- Profits take a hit
- Uptick in store opening activity
- Leading specialists: operating profits
- Leading specialists: store numbers
- Leading non-specialists
- Dunelm makes significant inroads in the furniture market
- Very sees improvement in furniture sales
- Argos reinforces its position as a digital-first retailer
- A focus on third-party furniture offers
- Online
- Online demand remains elevated
- Online landscape becomes increasingly fragmented
- Launch activity and innovation
- Lowering the barrier to purchase
- Leveraging technology to streamline online shopping
- Click-and-collect gets easier
- Collaborative efforts
- Advertising and marketing activity
- Adspend falls from 2023 high
- Graph 50: total above-the line, online display and direct mail advertising expenditure on furniture, 2020-23
- Think what a Dreams bed could do for you
- The Home of Homes
- Do try this at home
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Brand Research
- Dunelm leads the fold in usage
- Brand map
- Graph 51: attitudes towards and usage of selected brands, 2024
- IKEA trustworthy, Dunelm offers good value
- Loaf exclusive, Next Home accessible
- Next Home stylish, Dunelm reliable
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Appendix
- Supplementary data
- Leading specialists: operating margins
- Beds and mattresses continue to take the lion’s share
- Dreams is the biggest ad spender
- More budgets shifted to TV
- Graph 52: total above-the-line, online display and direct mail advertising expenditure on furniture, by media type, 2023 and 2024
- Market forecast data and methodology
- Market size and forecast: underlying data
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Key driver analysis methodology
- Graph 53: overall satisfaction with furniture retailers – key driver output, May 2024
- Nielsen Ad Intel coverage
- Infegy Atlas
The UK furniture market has become increasingly polarised in the face of the cost-of-living crisis, with engagement primarily concentrated on higher earners, whereas a reduction of spending is seen among their less well-off counterparts.
UK Furniture Market Analysis – Trends and Challenges
The damage that the crisis has inflicted on many households’ finances means a laser focus on value will persist in the UK furniture retail market. Pent-up demand for areas such as holidays could divert spending away from the home, hindering the market’s recovery. The increase in second-hand furniture can also impede the path to recovery, as it reduces the necessity for consumers to enter the market to purchase new products.
The recovery of consumer confidence, alongside a wider range of flexible payment options, could empower consumers to make larger purchases for their homes. The housing market, whilst remaining sluggish, has experienced some recent uptick, which could stimulate an increase in furniture demand.
Purchase the full report for a complete overview of the UK Furniture Retail market, including market dynamics and comprehensive analysis from Mintel’s industry experts. Readers of this report may also be interested in Mintel’s UK Kitchens and Kitchen Furniture Market Report.
Topics Analysed in this Report
- The size of the furniture market within the UK, including market segmentation and channels to market
- Key opportunities in the market and how retailers, both specialists and non-specialists, are performing and innovating
- How much consumers spend on furniture and rooms they buy furniture for
- How and where furniture is bought
- Consumers’ satisfaction levels with their latest furniture shopping experience
- Furniture buying behaviours and interests
- Future furniture spending intentions
- This report covers the retailing of the following types of furniture: living and dining room furniture, bedroom furniture, home office furniture
Meet The Expert
This report is written by Mintel’s retail analyst, Sam Nguyen. Sam joined Mintel in November 2022 as a Retail Analyst with a focus on Home Retail. Her previous work experience includes working as a Research Manager for The Insights Family – a market research agency specialising in the kids and family ecosystem. She holds an MSc in Marketing from Nottingham Trent University.
The furniture market remains highly polarised, but improved consumer confidence has the potential to bridge this gap, attracting more engagement from lower earners.
Sam Nguyen
Retail Analyst
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