Description

In recent years the importance of home has become amplified, incentivizing greater investment in the category. By contrast, the current cost of living crisis accelerated the focus on value while a stalling housing market pulled a significant purchase driver from the sector, ultimately dampening demand for home goods in the past year.

Still, many recognize how a well-designed space can enrich one’s life and wellbeing and although spending may have temporarily shifted away from high-investment categories (ie furniture) to lower-investment (ie home décor) as consumers remain mindful of budgets and wait for prices to drop, the future market is predicted to rebound as inflation and interest rates come down.

The in-person shopping experience remains critical for category shoppers, however younger generations increasingly turn to digital channels throughout the purchase journey. Companies need to continue to look for ways to optimize their omnichannel strategies and invest in technologies that provide an informed, guided experience that instills confidence in the purchase.

This report looks at the following areas:

  • Macroeconomic factors impacting the patio and outdoor furniture market
  • Types of home furnishings and décor purchased in the past year
  • Channels and retailers shopped
  • Approach to shopping for home goods
  • Attitudes toward shopping online for home goods
  • Attitudes and behaviors toward shopping for the home

As inflation eases, adults are slowly starting to invest on the home. Still, value will remain a focal point as cautionary spending remains.

Rebecca Watters, Associate Director of Household & Health

Market Definitions

This Report explores how consumers are shopping for home items both in-store and online. For the purposes of this Report, Mintel has used the following definitions:

  • Home décor: Picture frames, vases, decorative bowls, candlesticks/candleholders, candles, diffusers, wall art, clocks, trays, coasters, lamps/lighting (table lamps, floor lamps, lanterns), mirrors, collectibles/keepsakes, sculptures/artwork/figurines, decorative pillows/throw blankets, rugs/doormats, baskets, fake/silk flowers or plants, holiday/seasonal décor, home décor items. It excludes paint, wallpaper, window treatments (eg drapes, blinds).

Although this Report focuses mainly on home décor (eg clocks, lamps, lighting fixtures and other household decorative items), the market size covers the broader category of home furnishings. This includes home décor, carpet and floor coverings and window treatments.

  • Furniture: Upholstered furniture; sleep equipment (eg mattresses, springs, cots, waterbeds); sleep sofas, daybeds, futons and other dual-purpose pieces; living room, dining room and bedroom furniture (excluding mattresses/sleep equipment and sleep sofas/other dual-purpose pieces); office furniture, including computer-related furniture; outdoor/patio furniture and all other furniture, including kitchen, dinette, etc.

Table of Contents

  1. Executive Summary

    • What you need to know
    • Consumer trends: key takeaways
    • Market size and forecast
    • Market predictions
    • Opportunities
  2. Consumer Insights

    • Consumer fast facts
    • Home décor and furniture purchased in past year
    • Home décor purchases on the rise
    • Graph 1: home décor items purchased, 2024
    • Common and entertainment areas see the biggest investment
    • Graph 2: furniture items purchased, 2024
    • Younger consumers want it all; older adults modestly invest in home
    • Graph 3: home décor and furniture items purchased in past 12 months, by age, 2024
    • Retailers shopped
    • Value-centric retailers win in an inflationary environment; the store remains dominant channel
    • Graph 4: retailers shopped, 2024
    • Mass retailers will always come out on top, but consumers expand their retailer choices
    • Mass retailers, Amazon look to strengthen positions as home destinations
    • A slight uptick in those shopping secondhand
    • Generational differences exist when it comes to in-store shopping
    • Younger generations are searching secondhand or department stores, while older look to mass merchandisers
    • Graph 5: retailers shopped – in-store, by generation, 2024
    • Approach to shopping
    • Investing time (and money) into a purchase
    • Graph 6: approach to shopping, 2024
    • Gen Z is not afraid to use technology
    • Graph 7: approach to shopping – usage of technology tools, by generation, 2024
    • Build loyalty among parents through rental
    • Graph 8: approach to shopping – usage of rental service, by parental status, 2024
    • Attitudes toward online shopping for the home
    • A seamless omnichannel experience is the expectation
    • Graph 9: attitudes toward online shopping for the home, 2024
    • Young men have high expectations when it comes to customer service
    • Graph 10: select attitudes toward online shopping, by gender and age, 2024
    • Attitudes and behaviors toward shopping for the home
    • "All the feels" when it comes to designing a space
    • Graph 11: attitudes and behaviors toward shopping for the home, 2024
    • Explore collaborations that resonate with men
    • Graph 12: interest in collaborations – any agree (net), by gender and age, 2024
    • Challenging gender norms through design
    • Define the relationship with younger shoppers
    • Graph 13: select attitudes and behaviors toward shopping for the home – any agree (net), by generation, 2024
    • Retailers need to focus on implementing sustainable practices throughout the supply chain
  3. Competitive Strategies

    • Launch activity and innovation
    • Home improvement retailers bet on home
    • A return to mail-order homes will reignite tiny living design trends
    • Wayfair expands its physical retail footprint
    • Opportunities
    • Does resale hold as much potential for mainstream retailers?
    • Modernize green priorities to appeal to future audiences
    • Partner with a purpose
    • Unlock value and build loyalty through programs
    • The next retail tech trend: AI
  4. The Market

    • Market context
    • Market drivers
    • Outlook on homeownership sends mixed signals…
    • … yet Gen Z are trying to turn that tide
    • Graph 14: timing of planned home purchase, by generation, 2023
    • Consumers' financial outlook is increasingly optimistic
    • Graph 15: opinions on financial future, 2024
    • Fewer workers, more problems: retailers turn to tech to fill the customer service gap
    • Market size and forecast
    • Home goods retailers must navigate how to sustain momentum
    • Retail sales and forecast of furniture and home furnishings
    • Market segmentation
    • Retail sales and forecast of furniture and home furnishings, by segment
    • Graph 16: total retail sales and forecast of furniture and home furnishings, by segment, at current prices, 2018-28
    • Retail sales and forecast of furniture and home furnishings, by segment
  5. Appendix

    • Market definition
    • Consumer research methodology
    • Generations
    • Abbreviations and terms
    • Forecast
    • Forecast fan chart
    • Market sales data
    • Retail sales and forecast of furniture and home furnishings, inflation-adjusted prices
    • Average annual spending on shopping for the home
    • Retail sales and forecast of home furnishings
    • Retail sales and forecast of home furnishings, at inflation-adjusted prices
    • Retail sales and forecast of furniture
    • Retail sales and forecast of furniture, at inflation-adjusted prices

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Data

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