MILAN, Feb. 20, 2026 /PRNewswire/ -- The global furniture industry is undergoing a significant transformation, driven by evolving consumer preferences for sustainable, multifunctional, and smart furniture solutions, as well as the post-pandemic shift towards flexible living and working spaces, according to a new industry report released by the International Furniture Federation (IFF) on Tuesday.
The report forecasts that the global furniture market will reach $890 billion by 2030, boasting a compound annual growth rate (CAGR) of 4.8% from 2024 to 2030. This growth is primarily fueled by the rising demand for eco-friendly furniture, the expansion of the real estate sector in emerging markets, and the increasing adoption of smart home technologies integrated into furniture designs.
"Consumers today are no longer just looking for functional furniture—they're seeking products that align with their environmental values and adapt to their dynamic lifestyles," said Elena Rossi, chief market strategist at IFF. "The pandemic accelerated the trend of 'home as a hub' for work, leisure, and socializing, leading to a surge in demand for modular sofas, foldable dining tables, and home office furniture that maximizes limited space. Additionally, sustainability has moved from a niche concern to a mainstream requirement, with 75% of consumers willing to pay a premium for furniture made from recycled or renewable materials."
Sustainability has become a cornerstone of innovation in the furniture industry. Major manufacturers are increasingly adopting eco-friendly practices, such as using reclaimed wood, recycled plastic, organic fabrics, and water-based adhesives. For example, IKEA recently launched its "Circular Collection," which features furniture designed for easy repair, reuse, and recycling, reducing the industry's carbon footprint. Similarly, Herman Miller has committed to using 100% renewable or recycled materials in all its products by 2030.
The integration of smart technology is another key trend reshaping the industry. Smart furniture, equipped with features such as built-in charging ports, wireless connectivity, adjustable height settings, and sensor-based lighting, is gaining popularity among tech-savvy consumers. A survey by the IFF found that sales of smart furniture increased by 62% in 2025 compared to the previous year, with demand particularly strong in North America and Europe.
The Asia-Pacific region remains the largest market for furniture, driven by rapid urbanization, growing middle-class population, and booming real estate sectors in countries like China and India. China, the world's largest furniture producer and exporter, has seen a shift in consumer demand from mass-produced to high-quality, design-driven furniture. The Chinese government's focus on sustainable development has also encouraged local manufacturers to invest in eco-friendly production technologies.
E-commerce has emerged as a critical sales channel for the furniture industry, with online sales accounting for 35% of total furniture sales globally in 2025. The convenience of virtual showrooms, 3D product visualization tools, and hassle-free delivery services has made online furniture shopping more accessible. Retailers like Wayfair and Amazon have expanded their furniture offerings, while traditional brick-and-mortar stores are integrating online and offline experiences to enhance customer engagement.
Despite the positive growth outlook, the industry faces challenges including rising raw material costs, supply chain disruptions, and labor shortages. Fluctuations in the prices of wood, metal, and textiles have squeezed profit margins, while geopolitical tensions have disrupted global supply chains. To mitigate these risks, manufacturers are diversifying their supply chains, investing in automation to improve production efficiency, and exploring local sourcing of materials.
Looking ahead, the IFF predicts that the furniture industry will continue to evolve around sustainability, functionality, and digital innovation. "The future of furniture lies in creating products that are not only aesthetically pleasing and functional but also kind to the planet and adaptable to changing consumer needs," said Rossi. "As technology advances and environmental awareness grows, we expect to see more innovative solutions that redefine the role of furniture in modern living spaces."
Key players in the global furniture market include IKEA, Herman Miller, Ashley Furniture Industries, Williams-Sonoma, Inc., and Godrej Interio. These companies are focusing on product innovation, sustainable manufacturing, and digital transformation to maintain their competitive edge in the evolving market.
