Outdoor Furniture Market

Outdoor Furniture Market Overview

Global Outdoor Furniture Market size is expected to be worth around USD 53.4 Billion by 2033 from USD 28.6 Billion in 2023, growing at a CAGR of 6.0% during the forecast period from 2023 to 2033.

The outdoor furniture market is all about the business of selling furniture that is designed to be used outside. This includes items like chairs, tables, lounges, and sofas that are made to withstand weather conditions like rain, sun, and wind. People buy outdoor furniture to make their gardens, patios, balconies, and other outdoor spaces comfortable and stylish places to relax or entertain guests.

In recent years, more people are spending time outdoors, which has increased the demand for outdoor furniture. This market is growing as people look for high-quality, durable, and fashionable options to enhance their outdoor living areas. Companies in this market offer a variety of materials, such as wood, metal, and synthetic fabrics, to meet different tastes and needs. Whether it's for a cozy backyard or a large commercial space, outdoor furniture helps create inviting environments where people can enjoy fresh air and nature.

Drivers for the Outdoor Furniture Market

Rising Consumer Demand

One of the main drivers for the outdoor furniture market is the increasing consumer demand for outdoor living spaces. People are investing more in their homes, particularly in creating comfortable and stylish outdoor areas for relaxation and entertainment. This trend has been bolstered by the growing popularity of outdoor dining, hosting events, and simply enjoying time outside, which has led to a higher demand for quality outdoor furniture.

Growth in Residential and Commercial Construction

Expanding residential and commercial construction activities is another significant factor boosting the outdoor furniture market. New homes and commercial spaces often include patios, gardens, and balconies that require furnishing. As the construction industry grows, particularly in developing regions, the need for outdoor furniture increases, driving market growth.

Innovation in Furniture Design

Innovation in the design and functionality of outdoor furniture is also driving the market. Manufacturers are focusing on creating versatile, durable, and aesthetically pleasing furniture that meets the needs of modern consumers. Features such as weather resistance, multifunctionality, and eco-friendly materials are becoming more prevalent, making outdoor furniture more attractive and practical for a wider range of consumers​.

Increasing Popularity of E-commerce

The growing trend of online shopping is significantly impacting the outdoor furniture market. E-commerce platforms provide consumers with a convenient way to browse, compare, and purchase furniture without the need to visit physical stores. This ease of access, combined with a wider variety of products available online, has led to an increase in sales of outdoor furniture through online channels​.

Rising Disposable Incomes

As disposable incomes rise globally, consumers have more financial flexibility to invest in non-essential items like outdoor furniture. Higher incomes lead to increased spending on home improvement and lifestyle products, including high-quality and designer outdoor furniture. This economic factor plays a crucial role in driving the market forward.

Shift Towards Eco-Friendly Products

There is a growing consumer preference for eco-friendly and sustainable products, including outdoor furniture. This shift is driven by increased environmental awareness and the desire to reduce carbon footprints. Manufacturers are responding by offering furniture made from sustainable materials, such as recycled plastics and responsibly sourced wood, which appeals to environmentally conscious buyers​.

Restraints for the Outdoor Furniture Market

Economic Downturns

Economic downturns significantly impact the outdoor furniture market. When the economy is struggling, people tend to cut back on non-essential spending, including home improvement and outdoor furniture. This reduction in consumer spending affects the overall market demand. During economic slumps, even commercial buyers, such as hotels and restaurants, may delay or reduce their purchases of outdoor furniture due to budget constraints​.

Supply Chain Disruptions

The outdoor furniture market faces considerable challenges from supply chain disruptions. These disruptions can stem from various factors such as natural disasters, geopolitical tensions, and pandemics like COVID-19. When supply chains are interrupted, the availability of raw materials and finished products is affected, leading to delays and increased costs. These disruptions can hinder the ability of manufacturers to meet market demand efficiently​.

Rising Raw Material Costs

The increasing costs of raw materials, such as metal, wood, and plastics, significantly restrain the outdoor furniture market. Higher raw material prices can lead to increased production costs, which manufacturers may pass on to consumers. This can result in higher retail prices, making outdoor furniture less affordable for many buyers. Consequently, the market may experience a decline in sales volume as price-sensitive consumers look for cheaper alternatives​.

Environmental Regulations

Stricter environmental regulations are another restraint for the outdoor furniture market. Governments worldwide are implementing more rigorous standards for the use of certain materials and production processes to reduce environmental impact. Compliance with these regulations can increase manufacturing costs and limit the types of materials that can be used, thereby affecting the design and cost of outdoor furniture products​.

Competition from Low-Cost Producers

The market faces stiff competition from low-cost producers, particularly those in countries with lower production costs. These producers can offer outdoor furniture at significantly lower prices, attracting price-sensitive consumers. This competition can put pressure on established brands and manufacturers in higher-cost regions to lower their prices or innovate to maintain their market share​.

Seasonal Demand Fluctuations

Outdoor furniture sales are highly seasonal, with demand peaking during the spring and summer months. This seasonal nature of demand can lead to challenges in managing inventory and production schedules. Manufacturers and retailers must carefully plan and forecast to align their production and stock levels with the seasonal demand, which can be complex and resource-intensive.

Opportunity in the Outdoor Furniture Market

Growing Demand for Outdoor Living Spaces

The outdoor furniture market has been experiencing significant growth due to the rising demand for outdoor living spaces. People are increasingly investing in creating comfortable and stylish outdoor areas, such as gardens, patios, and balconies, which has boosted the demand for outdoor furniture. This trend is driven by urbanization, where individuals and families seek to maximize the use of their outdoor spaces for relaxation, dining, and socializing.

Expansion of Housing and Commercial Projects

The expansion of housing projects, including apartments and condominiums with outdoor amenities, has contributed to the market's growth. Developers are integrating outdoor spaces into residential and commercial projects to attract buyers and tenants, thereby increasing the demand for outdoor furniture. These spaces are often designed to offer a seamless transition between indoor and outdoor living, further driving the need for quality outdoor furniture pieces.

Increasing Preference for Durable and Weather-Resistant Furniture

Consumers are increasingly opting for outdoor furniture that is durable and weather-resistant, capable of withstanding various climatic conditions throughout the year. This preference has spurred innovation in materials used for outdoor furniture, such as rattan, aluminum, teak, and synthetic fibers. Manufacturers are focusing on creating products that offer longevity and require minimal maintenance, catering to the growing demand for high-quality outdoor furniture solutions.

E-commerce Growth and Digital Marketing Strategies

The growth of e-commerce platforms has significantly expanded the reach of outdoor furniture manufacturers and retailers. Online sales channels have enabled consumers to browse a wide range of products, compare prices, and make informed purchasing decisions from the comfort of their homes. Manufacturers are leveraging digital marketing strategies, including social media campaigns and influencer partnerships, to enhance brand visibility and engage with a broader audience interested in outdoor furniture solutions.

Environmental Sustainability and Ethical Consumerism

There is a rising awareness among consumers regarding environmental sustainability and ethical sourcing practices in the outdoor furniture industry. Many manufacturers are responding to this trend by using eco-friendly materials, implementing sustainable production processes, and promoting transparency in their supply chains. This shift towards sustainability is not only meeting consumer expectations but also positioning companies favorably in a competitive market landscape focused on corporate social responsibility.

Global Market Expansion and Regional Opportunities

The outdoor furniture market is witnessing global expansion, with opportunities emerging in both established and emerging markets worldwide. Regions experiencing rapid urbanization and disposable income growth are particularly lucrative for outdoor furniture sales. North America and Europe remain key markets, driven by lifestyle changes and a strong preference for outdoor leisure activities. Emerging markets in Asia-Pacific and Latin America are also showing promising growth prospects, fueled by urban development and a rising middle-class population seeking outdoor living solutions.

Trends for the Outdoor Furniture Market

Shift Towards Multi-functional Furniture Designs

The outdoor furniture market is witnessing a trend towards multi-functional designs that serve multiple purposes. Consumers are increasingly looking for furniture pieces that can be used in various settings, such as convertible dining sets that can also function as loungers or storage benches that double as seating. This trend is driven by the need to maximize space efficiency in outdoor areas and cater to diverse lifestyle needs, such as entertaining guests or relaxing comfortably.

Integration of Technology in Outdoor Furniture

There is a growing integration of technology in outdoor furniture, aimed at enhancing comfort and convenience. This includes innovations such as built-in speakers, USB charging ports, and LED lighting integrated into outdoor seating and tables. These technological advancements cater to modern consumers who value connectivity and seek outdoor furniture solutions that blend functionality with contemporary design elements.

Rise of Sustainable and Eco-Friendly Materials

Environmental sustainability is a major trend shaping the outdoor furniture market, with consumers increasingly opting for products made from eco-friendly materials. Manufacturers are responding by using sustainable materials such as recycled plastic, reclaimed wood, and responsibly sourced rattan. This trend is driven by consumer awareness of environmental impact and a preference for products that align with their values of sustainability and ethical consumption.

The popularity of Outdoor Dining and Entertaining

Outdoor dining and entertaining have become increasingly popular, driving demand for dining sets, bar carts, and outdoor kitchens. Consumers are investing in furniture that enhances their outdoor dining experiences, whether it's hosting family gatherings, barbecues, or casual brunches with friends. This trend is influenced by a cultural shift towards outdoor leisure activities and a desire to create inviting and functional outdoor spaces for socializing and relaxation.

Emphasis on Comfort and Ergonomics

There is a growing emphasis on comfort and ergonomics in outdoor furniture design, with manufacturers focusing on ergonomically designed chairs, loungers, and sofas that provide optimal support and relaxation. This trend reflects consumer preferences for outdoor furniture that not only look stylish but also enhances comfort during extended periods of use. Features such as adjustable backs, cushioned seating, and breathable fabrics are increasingly incorporated to improve overall comfort levels outdoors.

Customization and Personalization Options

Consumers are seeking customization and personalization options when choosing outdoor furniture, allowing them to tailor products to their specific preferences and outdoor spaces. This trend is driving manufacturers to offer a range of customization choices, including fabric colors, modular configurations, and optional accessories. Customizable outdoor furniture allows consumers to create unique outdoor environments that reflect their personal style and functional needs.

Segments Covered in the Report

By Product

o   Seating Sets

o   Loungers

o   Dining Sets

o   Chairs

o   Table

o   Other Products

By Material Type

o   Wood

o   Plastic

o   Metal

o   Other Material Type

By End Use

o   Commercial

o   Residential

o   Other End Use

Segment Analysis

By Product Analysis

Throughout the projection period, outdoor dining sets are expected to have potential growth due to the rise in commercial projects such as restaurants, cafes, and hotels. There is an increasing need for outdoor dining places as consumer preferences have evolved towards these kinds of experiences. The hotel sector may create unique dining experiences by supplying comfortable and beautiful dining sets for outside sitting. This allows them to respond to consumer preferences.

It is projected that sales of additional outdoor furniture, such as tables and chairs, will increase significantly in the coming years. The increased awareness of the advantages of durable, sustainable materials that do not bloat or shrink is propelling the production of handcrafted bamboo interior décor items. Producers also develop distinctive patterns and characteristics in all bamboo or composite materials to broaden the range of products they sell.

By Material Type Analysis

The global industry has been further divided into wood, plastic, and metal categories based on the type of material used. In 2023, the wood material type segment held a dominant position in the global business, contributing about 64.1% of the total revenue. The segment is probably going to continue to dominate for the duration of the projection. Wooden patio furniture is becoming more and more popular because of its many advantages, including strength, enhanced comfort, and visual appeal. One of the most popular raw materials utilized worldwide in the production of outdoor furniture is wood.

Furthermore, wooden outdoor furniture is a wonderful material for outdoor furniture since it is robust, lightweight, and has an attractive, natural appearance. Throughout the projection period, the metal category is anticipated to grow at the quickest rate. Its strong and durable material qualities are what cause its quick growth. Moreover, because of their strength, metallic frames can be shaped into more intricate shapes and made smaller, giving designers more creative freedom. When paired with other materials that have their advantages both aesthetically and practically, metal is also a fantastic option.

By Application Analysis

In 2023, the residential segment accounted for the highest percentage of revenue, with 57.9%. Westernization, increasing per capita income, population expansion, and changing lifestyles are the main factors impacting the residential segment. Additionally, consumers' priorities are shifting to improving outdoor spaces to create more aesthetically beautiful and cozy designs, which is significantly boosting the industry's growth. In many countries, rising income levels are driving up sales of products in both residential and non-residential settings. The growing need for outdoor seating alternatives and other accessories will drive the industry as a whole.

Throughout the projected period, the commercial end-use segment is expected to have the greatest CAGR, approximately 6.4%. As per Travel Pulse, the United States accounted for 41% of all hotel projects worldwide in 2021, with almost 669,460 rooms under development, making it the country with the biggest number of projects worldwide. Houston, Dallas, New York, Los Angeles, Atlanta, and Los Angeles had the most construction. The goal of these business spaces is to have an exquisite and refined appearance.

Regional Analysis

With a market share of 34.37% in 2022, the outdoor furniture market in North America generated the largest portion of total revenue. This trend is anticipated to continue throughout the forecast period. Family meals and get-togethers at home are becoming more and more popular in North America, which has led to an increase in product demand. The growing popularity of designing and maintaining front yards and backyard gardens to both entertain guests and improve the beauty of homes serves as additional evidence of this trend. The existence of businesses like Brown Jordan and Forever Patio, as well as the accessibility of cutting-edge and fashionable

Throughout the forecast period, the outdoor furniture market in Asia Pacific is anticipated to grow at the fastest rate more than 7.1%. In nations like China, Malaysia, South Korea, Singapore, and India, interest in international travel is growing. Sales of outdoor furniture are expanding in the area due to the growing number of tourists, which is contributing to the growth of the market share of the commercial segment of the outdoor furniture industry in the area. The Indian market is being helped by a boom in restaurant visits, as seen by the growth in tourism and increasing disposable income. The outdoor furniture market in India is expected to develop at the quickest rate in the Asia Pacific region between 2023 and 2033, with a compound annual growth rate (CAGR) of 9.1%.

Competitive Analysis

There are both fresh entrants and a small number of established competitors in the market. A lot of major firms are concentrating more of their attention on the expanding outdoor furniture trend. To preserve market share, industry participants are broadening the range of services they provide.

Recent Developments

In March 2023: To increase the range of products it offers, Restoration Hardware, a furniture firm, introduced a new line of outdoor furniture.

In January 2023:  Gloster unveiled a brand-new line of recycled plastic outdoor furniture.

Key Market Players in the Outdoor Furniture Market

o   Inter IKEA Systems B.V.

o   Ashley Outdoor Furniture Industries Inc.

o   Brown Jordan Inc.

o   Kenter

o   Agio International Company, LTD

o   Lloyd Flanders, Inc.

o   Barbeques Galore

o   Century Outdoor Furniture LLC.

o   Aura Global Outdoor Furniture

o   Kimball International Inc.

o   Other Key Players

 Report Scope: