The boom in home improvements unleashed by the COVID-19 pandemic also led to a boom in associated home furnishings. Whilst furniture in general experienced a significant uptick in growth in 2020, before slightly plateauing in 2021, those items of furniture located with the kitchen or bathroom, both of which are popular renovation targets, experienced particularly strong growth.
The COVID-19 pandemic, record-low interest rates and the HomeBuilder grant combined forces in 2021 to create a residential construction boom. Unlike previous residential construction booms, which were focused on apartments, largely purchased by investors, the residential construction boom of 2020 and 2021 was many confined to detached houses.
As Australians were stuck at home during the pandemic, they invested in means of bringing aspects of the outside world into their own homes. This led to investments that were deemed necessary, such as when investing in home office furniture, but also sometimes frivolous.
The impact of the residential construction boom generated by the government response to the COVID-19 pandemic will be long-lasting. Shortages in both labour and materials will create a time lag between getting building approval for a house and the house being constructed and ready to move into.
Whilst a range of factors conspired to fuel growth in home furnishings at the end of the review period, there was one factor that was holding the category back – a complete lack of migration from overseas, and comparatively little internal migration. Since a large proportion of home furnishings are acquired by migrants “setting up house”, this lack of migration put downwards pressure on the category.
Sales of home furnishings flourished during the pandemic, despite retailers of such products not being deemed essential to remain open during lockdowns. Instead, retailers rapidly pivoted to online channels, much to the benefit of brands such as Temple & Webster, which already had a strong presence in this channel.
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Understand the latest market trends and future growth opportunities for the Home Furnishings industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Home Furnishings industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The furniture and other moveable articles in a home that are necessary or useful for comfort and convenience. Items must be new when sold to the consumer; second-hand/used home furnishings are excluded. Antiques are also excluded. Home furnishings refers to indoor living (home textiles, indoor furniture and window coverings), outdoor living (BBQ's, garden sheds and outdoor furniture) and lighting (lighting sources and light fixtures).See All of Our Definitions
This report originates from Passport, our Home Furnishings research and analysis database.
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