Australia Furniture Market By Product Type (Home Furniture, Office Furniture, Institutional Furniture), By Raw Material (Wood, Plastic, Metal, Others), By Sales Channel (Supermarkets/Hypermarkets, Exclusive Stores, Online, Others), By Region, Competition Forecast & Opportunities, 2020-2030F

Market Overview

The Australia Furniture Market was valued at USD 10.86 Billion in 2024 and is expected to reach USD 15.35 Billion by 2030 with a CAGR of 5.98% during the forecast period. Australian furniture is known for its unique and environmentally conscious appeal, largely driven by the use of local and sustainable resources such as native timbers and eco-friendly textiles. Given that much of Australia experiences a hot and humid climate, furniture must be durable enough to withstand these conditions. This has led to a preference for materials like rattan, wicker, and weather-resistant woods, which offer both functionality and aesthetic appeal in such environments.

As a vast country with a relatively small population, Australia’s market for mass-produced furniture is somewhat limited. This dynamic has created space for a mix of demand for both locally crafted and imported furniture products. Australian consumers have distinct tastes that set them apart from global trends they typically favor stylish, functional pieces and are often willing to invest more in high-quality, long-lasting furniture. For instance, the typical Australian household invests AUD USD 5,000 in furniture each year.

Key Market Drivers

Urbanization and Housing Development

One of the primary drivers of the Australia Furniture Market is rapid urbanization and the associated growth in residential housing development. As more people migrate to urban areas in search of better employment and lifestyle opportunities, there is a rising demand for housing, which directly boosts the need for home furnishings. Cities like Sydney, Melbourne, Brisbane, and Perth continue to expand, with apartment living becoming increasingly common, particularly among young professionals and small families. This urban shift leads to a growing demand for space-saving, modular, and multi-functional furniture that fits modern urban lifestyles. According to the Australian Bureau of Statistics, the total number of dwelling units commenced decreased by 4.4%, reaching 41,911 dwellings. New private sector house commencements saw a 6.1% decline, amounting to 26,136 dwellings, while new private sector other residential commencements fell by 5.6% to 14,196 dwellings. Additionally, the value of total building work done dropped by 0.7%, totaling $38.4 billion. Compact sofas, foldable dining tables, and storage-efficient bedroom sets are in high demand. Additionally, new homeowners and renters often seek to furnish their homes with modern and stylish furniture, fueling both the organized and unorganized furniture sectors. Government initiatives promoting affordable housing and infrastructure development also indirectly support the furniture market. These construction projects not only create new homes but also increase the need for furnishings in communal spaces such as lobbies, offices, and lounges.

Rising Disposable Income and Changing Lifestyles

Australia's growing economy has resulted in increased disposable income among the population, significantly influencing consumer spending patterns, especially in the furniture segment. As household incomes rise, Australians are more inclined to invest in quality furniture that enhances their living standards, comfort, and interior aesthetics. The modern Australian consumer prioritizes style, quality, and durability over price, which has shifted the market toward premium and designer furniture options. The willingness to spend on home improvement, driven by lifestyle upgrades, has encouraged growth in both online and offline furniture retail channels. As work-from-home arrangements and home-based leisure gain traction, people are spending more on comfortable chairs, ergonomic desks, entertainment units, and luxurious home décor items. Moreover, dual-income households and time-constrained consumers often prefer ready-to-assemble or custom furniture solutions that blend aesthetics with functionality. This has spurred innovation in product design and increased the popularity of modular and customizable furniture. Rising consumer awareness about interior design trends, fueled by social media platforms and home makeover TV shows, also plays a role. Australians now view furniture not just as functional items but as an extension of their personality and lifestyle.

Growth of E-Commerce and Omnichannel Retailing

The digital transformation of retail in Australia has had a profound impact on the furniture market. With the widespread adoption of online shopping, furniture retailers are leveraging e-commerce platforms to reach a broader audience and offer convenience, variety, and competitive pricing. Online furniture sales have surged, especially post-COVID-19, as consumers became more comfortable making high-value purchases online. E-commerce provides buyers with access to an extensive range of products, user reviews, comparison tools, and virtual room planners, helping them make informed decisions from the comfort of their homes. Innovations like augmented reality (AR) now allow customers to visualize furniture in their own spaces, reducing uncertainty and increasing confidence in online purchases. Retailers have responded by adopting omnichannel strategies, blending online and physical experiences. Many brick-and-mortar furniture stores now offer digital catalogs, in-store pickup, and seamless return policies to enhance customer experience. This integration has improved inventory management and expanded reach without compromising personalized service. Moreover, online platforms allow smaller or niche furniture brands to compete alongside major players, encouraging diversity and innovation in design and materials. With digital marketing tools, these brands can effectively target specific demographics, from eco-conscious consumers to urban millennials, further stimulating market growth.

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Key Market Challenges

Supply Chain Disruptions and Raw Material Costs

One of the most significant challenges in the Australia Furniture Market is ongoing supply chain disruptions and the rising cost of raw materials. The industry heavily relies on imported materials like wood, metal, foam, and fabrics, particularly from countries such as China, Malaysia, and Vietnam. Global events such as the COVID-19 pandemic, geopolitical tensions, and shipping container shortages have caused severe delays and increased freight costs. These supply chain interruptions not only lead to longer delivery times for finished furniture but also reduce the ability of manufacturers to meet market demand efficiently. In turn, this affects the availability of popular products, customer satisfaction, and retailer reputation. Additionally, the increased cost of raw materials, driven by global inflation and limited supply, puts pressure on profit margins. To stay competitive, some businesses are forced to absorb the rising costs, while others must pass them on to consumers potentially reducing sales in price-sensitive segments. Moreover, the Australian market’s geographical isolation exacerbates these challenges, as importing becomes costlier and more time-consuming compared to other regions. This reliance on international supply chains also makes the industry vulnerable to currency fluctuations, trade regulations, and overseas manufacturing limitations.

Intense Market Competition and Pricing Pressures

The Australia Furniture Market is highly competitive, with a wide range of domestic and international players competing across various price points and styles. Major retailers like IKEA, Harvey Norman, and Fantastic Furniture dominate with economies of scale, extensive product lines, and strong brand recognition. At the same time, boutique and online retailers are entering the market with unique, niche offerings that cater to style-savvy or sustainability-conscious consumers. This crowded marketplace leads to intense pricing pressure. To attract and retain customers, retailers often resort to discounting strategies, which can erode profit margins. The presence of global e-commerce platforms like Amazon and Wayfair has further intensified competition, as consumers can now access a broader selection of products—often at lower prices than ever before. For local furniture makers and smaller retailers, differentiating their products becomes critical. However, doing so through superior design, craftsmanship, or customer service requires investment in innovation and marketing, which can be difficult for businesses operating on tight budgets. The fast-changing preferences of consumers, influenced by social media and design trends, also mean companies must regularly update their collections to stay relevant. This need for constant adaptation increases operational costs and inventory risk.

Key Market Trends

Rise of Sustainable and Eco-Friendly Furniture

Sustainability is becoming a defining trend in the Australia Furniture Market, driven by increasing environmental awareness among consumers. Buyers are now more inclined to choose furniture that is responsibly sourced, made with non-toxic materials, and designed for durability and recyclability. Eco-conscious purchasing decisions are particularly common among younger demographics and urban dwellers who prioritize environmental ethics alongside aesthetics and functionality. Furniture brands are responding by incorporating sustainable materials such as reclaimed wood, bamboo, recycled metal, and FSC-certified timber. Additionally, manufacturers are investing in cleaner production processes, including water-based adhesives, low-VOC finishes, and energy-efficient manufacturing technologies. Some companies also offer repair services or furniture take-back programs to extend product lifespans and reduce landfill waste. This trend is further reinforced by governmental and regulatory support. Policies promoting sustainable manufacturing, waste reduction, and carbon neutrality push companies to adopt greener practices. Businesses that emphasize transparency in their sustainability efforts such as clear product labeling and environmental certifications are gaining favor with eco-minded consumers.

Demand for Multi-Functional and Space-Saving Furniture

With the growing number of Australians living in apartments, townhouses, and compact homes particularly in urban centers the demand for multi-functional and space-saving furniture is on the rise. Consumers are looking for furniture pieces that offer more than one use, helping them maximize limited space without sacrificing comfort or style. Items like sofa beds, fold-out desks, expandable dining tables, and storage ottomans are increasingly popular. These designs serve dual purposes and are ideal for people working from home, living in shared accommodations, or simply seeking more efficient use of space. Modular furniture that can be reconfigured based on the need such as stackable shelves or customizable seating adds to this appeal. This trend is not only practical but also influenced by a minimalist lifestyle philosophy that emphasizes functionality and decluttered living. Australians are embracing the idea of living with fewer, but more versatile, pieces of furniture that align with both their spatial constraints and aesthetic preferences. Furniture designers and manufacturers are innovating in this segment by using lightweight, durable materials and integrating technology, such as USB ports or wireless charging stations, into multi-functional pieces. The appeal of these smart, adaptable designs extends across demographics from students and young professionals to retirees downsizing their homes.

Segmental Insights

Product Type Insights

In the Australia furniture market, home furniture is the dominating segment, driven by a combination of rising homeownership, urbanization, and evolving lifestyle preferences. The increasing trend of home renovations, interior personalization, and investments in residential aesthetics has significantly contributed to the growth of this segment. Consumers are placing greater emphasis on creating comfortable and functional living environments, especially with the rise in remote working arrangements, which has made home offices and ergonomic furniture essential additions to many Australian households. Living room, bedroom, and dining furniture remain top priorities, with growing demand for stylish yet practical pieces that suit modern and space-efficient homes. Additionally, outdoor furniture has seen a boost, fueled by a preference for alfresco living and entertaining at home. Materials such as timber, leather, and upholstered fabrics remain popular due to their durability and aesthetic appeal. The home furniture segment also benefits from the growing influence of online retailing, with consumers now able to explore a wide variety of styles and price points with ease. Retailers are leveraging digital platforms and showrooms to offer customization options and virtual design tools. As consumer preferences shift toward personalization, sustainability, and multi-functionality, home furniture continues to dominate the Australia Furniture Market landscape. 

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Regional Insights

Queensland holds a prominent position in the Australia furniture market, supported by its growing population, expanding housing sector, and rising consumer demand for quality home and office furnishings. As one of the fastest-growing states in terms of both residential development and infrastructure investment, Queensland has witnessed a consistent rise in furniture consumption across urban and regional areas. Cities like Brisbane, Gold Coast, and Sunshine Coast are key hubs where new housing developments, home renovations, and lifestyle upgrades drive demand for modern, space-efficient, and stylish furniture solutions. The state’s subtropical climate and outdoor lifestyle have also fueled demand for outdoor and patio furniture, with consumers seeking durable, weather-resistant pieces that support entertainment and leisure activities. Additionally, the rise in home-based work and hybrid working models has boosted sales of home office furniture, including ergonomic chairs, desks, and multifunctional storage units. Queensland also benefits from a thriving tourism and hospitality sector, which contributes to demand for commercial furniture in hotels, resorts, cafes, and restaurants. Local manufacturers and retailers in Queensland are increasingly catering to trends such as sustainability, customization, and smart furniture integration. With ongoing urban development and an active housing market, Queensland continues to strengthen its role as a key player in Australia’s growing furniture industry.

Recent Developments

• In 2024, Value Office Furniture, a proudly Australian-owned business known for supplying premium office furniture nationwide, introduced a new range of ergonomic office chairs. This collection is designed to elevate workplace comfort by incorporating advanced ergonomic features, supporting healthier and more productive office environments.
• In 2023, Jardan, a family-owned Australian furniture manufacturer, announced significant steps in its growth strategy. The company is establishing a new operational hub and preparing to expand into the U.S. market to follow its growing customer base. To support this international expansion, Jardan has also doubled the size of its manufacturing facility.
• In 2024, the family of the late Australian architect Roy Grounds revealed a new collaborative furniture collection with K5 Furniture. This collection showcases classic silhouettes infused with modern sensibilities, presenting a limited-edition range in vibrant hues for a contemporary twist.
• In 2023, Australian design firm Derlot launched its Strap collection, comprising 11 distinct seating types inspired by vintage pool furniture adorned with fabric slings. The collection includes stools, chairs, benches, and loungers, all characterized by minimalist frames and robust aluminum strips. These elements combine to offer durable seating options suitable for various public and private settings.

Key Market Players

• IKEA Pty Limited
• Harvey Norman Holdings Limited
• Living Edge (Aust) Pty Ltd
• Nick Scali Limited
• Greenlit Brands Pty Limited
• Freedom Furniture Australia Pty Limited
• Amart Furniture Pty Limited
• King Furniture Australia Pty Ltd
• Saveba Pty Ltd trading (Coco Republic)
• Kogan Australia Pty Ltd

Report Scope:

In this report, the Australia Furniture Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Furniture Market, By Product Type:

o   Home Furniture

o   Office Furniture

o   Institutional Furniture

• Australia Furniture Market, By Raw Material:

o   Wood

o   Plastic

o   Metal

o   Others

• Australia Furniture Market, By Sales Channel:

o   Supermarkets/Hypermarkets

o   Exclusive Stores

o   Online

o   Others

• Australia Furniture Market, By Region:

o   Australia Capital Territory & New South Wales

o   Northern Territory & Southern Australia

o   Western Australia

o   Queensland

o   Victoria & Tasmania

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Australia Furniture Market.

Available Customizations:

Australia Furniture Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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