Are you wanting to invest in retail furniture but you are not sure how lucrative it will be? You might be surprised at all of the money-making opportunities there are in the furniture market.
In this guide, we’re going to dive into the home furnishings market and the potential stock options available. By the end of this article, you will know whether or not this is the right market for you to invest in. Let’s get started.
Should You Invest in the Home Furnishing Market?
The home furnishing market is growing and only expected to keep expanding over the next five to ten years. In 2019, the market was valued at over six billion dollars globally, and that amount is estimated to increase to almost eight and a half billion by 2027.
That is a compound annual growth rate (CAGR) of 3.9%, which is very promising.
The reason the furniture market will always be profitable is that it covers such a wide array of industries. Homes, retail stores, salons, schools, hotels, the real estate industry, and more all need furniture.
Additionally, the market itself is huge. It includes furniture, flooring, wall decor, and textiles. Furnishings can be mass-produced or handmade by small businesses and artisans, so there are plenty of investment opportunities depending on what you want.
It’s also never been easier to buy furniture online. Companies like Ikea, Wayfair, and Walmart have made furnishing your entire house from your couch possible.
What Part of the Home Furnishing Market Should You Invest In?
Now that you’re convinced to buy stocks in the furniture market, you need to figure out which ones. To start, you can use a financial service to determine the best retail stocks to buy now.
The next thing you should do is look at the consumer demands and home furniture industry trends.
There will always be a demand for luxury furniture in first-world countries. In fact, the luxury market is vastly expanding in China, India, and other countries where families and individuals have the disposable income to spend on high-end home furnishings.
However, the trend towards small living is also on the rise. People are opting for tiny houses, cozy downtown apartments, and even vans and RVs more than ever.
For that demographic, furniture that is compact and functional is important. That’s why pieces with storage and multi-uses are popular today. This sect of consumers also places value on eco-friendly materials and practices.
There are plenty of green furniture companies looking for the right investors who see both the mission and the value of their investment. From utilizing sustainable materials to repurposing discarded items like old tires to make new furniture, these companies are pushing boundaries and consumers are loving it.
Are You Ready to Invest in the International Home Furnishings Market?
Hopefully, this guide has helped you see all the opportunities in the home furnishings market. In the next few years it is only going to continue growing, so investing now will pay off.
For more personal finance tips and resources, check out the rest of the blog.