Reasons behind the growth in South & Central America Outdoor Furniture Market
The South & Central America market for outdoor furniture is growing. Consumers increasingly use their garden as living space, a place for active and passive recreation. Therefore, outdoor furniture has to meet the same needs as indoor furniture. Sustainability and design are becoming increasingly important. Another trend is developing furniture for relatively small spaces like balconies. Following are the major factors which has driven the demand for outdoor furniture.
- Rapid urbanization and growing demand for modular and compact furniture is expected to heavily impact on the growth of furniture market in near future. Expanding expenditures over the purchase of luxury housing and real estate properties will also aid the progress of outside furniture market. Over the next five years demand of purchasing luxury housing properties is expected to reach 20% by the wealthy population across the globe.
- The rising trend of online and mobile shopping further boost the demand for furniture through online channels. Various furniture companies such as Pepperfry, Urban ladder and others are creating huge demand from these online channels. The technological advancements such as availability of high speed internet networks such as 4G and spiked absorption of smart gadgets such as smart phones and tables is boosting the e-retail sector South & Central Americaly. These advancements further provides ease to the customers to buy furniture through online channels
- While housing constitutes a major part of real estate in South America, commercial construction has also been growing, in order to cater to the increasing demand for office space. With the housing market returning and buyers feeling more comfortable with the economy, it’s good news for the furniture industry; since the housing and real estate market are the largest drivers of industry demand. there has been a steady annual
Additionally, the improved focus on high quality outdoor furniture has heightened the selections and combinations of outdoor fabrics that homeowners and designers are using. Home size is an imperative indicator of which sets consumers are most probable to purchase. For instance, the size if the U.S residency has declined from 2,400 sq. ft. in 2018 to 2,200 sq. ft. in 2015. As a result, this influences the types of patio sets customers are buying. As living spaces become smaller, smaller sets with price labels in between USD 399 and USD 799 will continue to rise in popularity.
Further, Retail stores will continue to be the most lucrative sales channel for outdoor furniture, followed by direct to consumer channel. However direct to consumer channel will register a comparatively higher CAGR than retail stores in the market through 2022.
On the other hand, the presence of large number of local furniture manufacturers hampers the growth of organized South & Central America furniture market. Further, the unorganized players in the furniture industry offers the same products as of organized players but at low prices. However, at some point the quality of the material is also compromised by unorganized players without the knowledge of the consumers. The population further incline towards the low cost furniture products.
This is an edited extract from “Global Outdoor Furniture Market Outlook, 2025” a study undertaken by Goldstein Research. The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. A systematic approach in order to estimate and project the market sizing has been followed keeping in mind all the on-going and upcoming trends of the market. For more information, visit https://bit.ly/2upAiyl