Home furnishings in North America saw growth slow markedly in 2021 after the spike in demand seen a year earlier, when consumers were directing more of their income into spending on their homes, given the large amount of time they were spending in them and the reduced expenditure in other areas, such as travel, leisure and social occasions. After another muted performance in 2022, gradually improving growth rates are expected over the rest of the forecast period.
This report comes in PPT.
Despite the challenges and the supply chain constraints the industry was experiencing during 2021, home furnishings continued to record positive value growth in the US. This was driven by factors like increased demand for furniture, the booming housing market and higher disposable incomes. Consumers were also still prioritising their homes under the “home as sanctuary” trend, linking their homes to the protection of their physical and mental wellbeing, with the outside world continuing to be perceived as a hostile and out-of-control space.
The home and garden industry as a whole was experiencing supply chain constraints in 2020, which only deepened in 2021. For example, in the early part of the year, a storm in Texas led to disruptions to production of foam, and therefore shortages of this product, which is used in the arms and backs of furniture, as well as bedding. This shortage pushed many manufacturers to cut their production, and ended up slowing down an already sluggish supply chain.
The e-commerce channel was a major “winner” during the pandemic, with its share of home furnishings sales up to a quarter of retail value sales in the US and a fifth in Canada in 2020. While there was a return to in-store purchases in 2021, visible in homewares and home furnishing stores regaining some of the share it had lost a year earlier, e-commerce managed to defend the major gains it made in 2020, with consumers attracted to features like home delivery, free shipping, attractive prices and the ability to order at any time from anywhere.
While supply chain constraints, global inflationary trends and consumer spending on “normal” social, leisure and travel activities resuming post-pandemic will all be combining to hold back growth in home furnishings moving into 2022, improving performances are expected from 2023, with gradually rising annual growth rates until the end of the forecast period.
This project has a strict focus on sales to consumers only. Trade and professional sales are excluded. Home and garden refers to gardening, home improvement, homewares and home furnishings.See All of Our Definitions
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