Despite a volatile few years, the global homeware sector continues to build and grow. In fact, the global homeware market is estimated to have a compound annual growth rate of 7% – reaching $191bn by 2029.
This success of the homeware sector can’t be solely attributed to consumers making the most of their living spaces. A number of factors have fuelled its rapid growth, such as improving economic conditions, the rise of ecommerce and digital platforms and the advancement of new technologies like artificial intelligence.
In this blog post, we examine the current state of the furniture and homeware sector using RetailX’s Global Homeware Sector Report, and take a look at the biggest trends emerging from the industry. If you’re a homeware retailer, get your notepad at the ready!
In-store vs online
While in-store shopping has been favoured in the past, we’re seeing more and more sales in this sector take place online. The rise of ecommerce and other digital platforms have made it easier and more convenient than ever to browse and buy products, compare prices and find new trends.
The Covid-19 pandemic not only boosted interest in DIY and renovation projects, but online sales in the furniture and homeware sector, too. And this way of shopping has outlasted the pandemic, with nearly half of consumers making furniture and decor purchases online. ConsumerX research found 42.5% of shoppers have purchased homeware products online in the past 12 months. One of the biggest draws of buying online is the ability to have products delivered straight to their front door – 43% of consumers listed this as a key reason for doing so.
This doesn’t mean that brick-and-mortar retailers should close their doors, however. A quarter of homeware shoppers still enjoy going to a physical store and feel safer doing so when parting with a substantial amount of money.
For ecommerce brands, matching the experience of a brick-and-mortar store online will be a big focus in 2025 (more on that later).
The new frontier for fashion brands?
You might have noticed that a few of your favourite fashion retailers have recently launched homeware collections. H&M and Zara, as well as a whole host of luxury designer labels, have invested in homeware offerings as of late – even going as far as to open standalone homeware boutiques. The merging of the two sectors makes sense; both fashion and homeware appeal to our creative side and allow us to express our sense of style. Venturing into the world of home decor has been proven to boost the bottom line of many fashion brands. BoF Insights has stated that “lifestyle extensions can not only provide fashion brands with access to untapped revenue, but also boost brand equity and help grow customer lifetime value.
The rise of social commerce
We recently discussed the rise in social search in our SEO predictions for 2025 blog, and we’ve seen this trend influence consumer behaviour in the furniture and homeware sector. Being highly visual in nature, it’s no surprise that consumers use social media platforms like Instagram, Pinterest and TikTok to search for home decor content, from the latest design trends to decor ideas and styling inspiration. Influencers are also sought out and relied upon for product reviews, recommendations and DIY tutorials. We can therefore expect to see a rise in social commerce over the coming months as this way of shopping becomes more and more commonplace.
More immersive online experiences
With many consumers still opting to make big-ticket purchases in-store, how can ecommerce brands entice customers when they can only look and not touch? It’s clear that consumers are looking for an immersive experience, and deeper levels of personalisation. A 2024 study of US consumers highlighted that 81% of customers prefer a personalised approach. Similarly, 70% of respondents said a personalised experience in which the brand knows their history with the company is important.
It’s no surprise, then, that we’re seeing a rise in AI usage in the sector. Artificial intelligence is impacting all industries, and furniture is no exception as it can be used in numerous ways from predictive product recommendations to personalised marketing to enhance the customer experience.
Perhaps one of the most exciting AI applications in this industry is product visualisation. Retailers should be very conscious of quality when using AI for 3D product visualisation, however, as furniture brands must prioritise quality and a bespoke experience.
Channel hopping
We’re in the age of multichannel retail, and consumers have more choice than ever before in how and where they shop. Homeware might have been a primarily hands-on shopping experience in the past, but consumers are now using a range of platforms.
The majority of global shoppers start their buying journey online, with 63.8% researching products on the internet before purchasing, and 46% using smartphones to do so. Retailers need to ensure they’re firing on all cannons, from a seamless ecommerce checkout experience to convenient click-and-collect options.
Sustainable furniture
The retail industry as a whole has had to clean up its act in recent years, and the homeware sector is no exception. Just like fashion, it’s a highly trend-focused industry, with ecommerce giants like Wayfair adding roughly 2,200 new products per day to its catalog. And as with fast fashion, attitudes towards affordable furniture are changing, as cheap prices are increasingly associated with poorer quality, shorter lifetime value and high levels of product waste. Consumers and regulators alike are calling for more sustainable products and operations.
According to a survey by PwC, 58% of online consumers consider sustainability when purchasing homeware products. Furthermore, 68% are willing to pay more for sustainable homeware products. Recent ConsumerX research found that nearly 20% of shoppers have purchased second-hand or refurbished homeware products in the past 12-months, so we could well see a shift towards vintage, pre-loved and upcycled furniture from small businesses and marketplaces.
IKEA, number one in the Top 50 global homeware retailers, has scaled a number of sustainable homeware initiatives — most recently its own digital secondhand marketplace to help customers buy and sell pre-loved IKEA products.
Looking to speak to a furniture and homeware ecommerce expert? Our team can help you capitalise on the latest industry trends to grow and scale your business – send us a message to get started.
