06 July 2025, 01:48
By Zoë Bonser Jan 10, 2025

The furniture market's challenges and opportunities in 2025

The January Furniture Show returns to the NEC Birmingham from 19th-22nd this month. Overflowing with product launches, the industry’s fulcrum will set the stage for 2025 (and beyond) – and what a stage it is, writes Zoë Bonser, portfolio director for the Retail Division at show organiser Clarion Events … 

The global furniture market in 2024 was a tale of contrasts – ripe with opportunity, yet fraught with obstacles. Much like assembling flat-pack furniture, success in this market requires patience, adaptability, and a willingness to embrace the unexpected.

The challenges facing the industry are as diverse as the furniture it produces. Rising costs remain a thorn in the side of manufacturers and consumers alike. Inflation has pushed up prices for essential materials like timber and steel. At the same time, higher interest rates have made financing large purchases more expensive, prompting many to favour practical, multi-functional designs that maximise value for money.

Meanwhile, the aftershocks of global supply chain disruptions continue to reverberate. Material shortages and shipping delays are still common, and labour gaps in manufacturing and logistics add to the strain. At the same time, consumer tastes are evolving at a pace that demands attention. 

Sustainability, for instance, is no longer a fringe consideration, but a driving force in purchasing decisions. Shoppers in the UK, in particular, show an increasing preference for furniture made from reclaimed wood or recycled materials, reflecting a broader shift towards eco-conscious living. Remote-working trends are also shaping demand, as ergonomic home office furniture becomes a necessity rather than a luxury.

Despite these hurdles, the furniture market is far from gloomy. Opportunities abound for businesses that are willing to innovate. Sustainability stands out as a powerful growth driver, with eco-friendly materials and designs that prioritise durability and repairability winning over consumers. Likewise, the ongoing demand for home office furniture presents a golden opportunity for brands to cater to remote workers who seek comfort, style and practicality.

Technology, too, offers a frontier for growth. Digital transformation is reshaping the shopping experience, with ecommerce taking centre stage. By 2025, nearly 40% of furniture sales are expected to occur online. Companies that invest in user-friendly platforms and immersive technologies like augmented reality (AR) and virtual reality (VR) are likely to gain a competitive edge, allowing customers to visualise how furniture fits into their homes before making a purchase.

Meanwhile, personalisation is carving its niche. Bespoke and customisable furniture – whether it’s a made-to-order sofa or modular designs tailored to urban living – are increasingly sought after. Consumers are looking for pieces that reflect their personal style while offering practical solutions for modern living spaces.

The road ahead is as complex as a designer armchair, but it’s also full of promise. The furniture market’s challenges are pushing businesses to think creatively and act decisively. Those that embrace sustainability, digital innovation and personalisation are likely to thrive in this evolving landscape. The key is to see every obstacle not as a roadblock, but as an invitation to innovate.

The question is, are you ready to take a seat at the table?


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