Vietnam Furniture Market Size Growing Steadily to Touch USD 1.83 Billion by 2029
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Vietnam furniture market size at USD 1.402 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Vietnam furniture market size to grow at a significant CAGR of 4.54% reaching a value of USD 1.83 billion by 2029.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Vietnam furniture market size at USD 1.402 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Vietnam furniture market size to grow at a significant CAGR of 4.54% reaching a value of USD 1.83 billion by 2029. Major growth drivers for the Vietnam furniture market include the rising construction, urbanization, and export-focused growth. Its versatile furniture, especially wood, appeals to global markets including the US, UK, Canada, Australia, and Japan. Capitalizing on production strengths, the sector aims for increased market presence. In the dynamic landscape, Vietnam ranks fifth globally and second in Asia, competing with giants like China, Germany, and Italy. Trade tensions prompted investors to pivot, resulting in an 18% export CAGR. With 2,300 exporters, 450 in FDI, and technology driving change, the sector showcases growth potential, exemplified by Wanek Furniture's move from China. However, the factors such as high penetration of unorganized sector is anticipated to restrain the overall market growth during the forecast period.
Vietnam Furniture Market – Overview
The Vietnam furniture market pertains to the production, consumption, and export of furniture products within the country's boundaries. This market encompasses various categories of furniture, from indoor to outdoor, made of different materials, and catering to diverse consumer preferences. It plays a pivotal role in the economy, contributing significantly to trade and employment. The Handicraft and Wood Industry Association of Ho Chi Minh City (Hawa) reported that Vietnam's furniture consumption reached approximately USD 4 billion in 2018, with exports achieving a record USD 8.9 billion, a 15.6% increase from the previous year. Foreign companies accounted for 44% of timber and product exports, while domestic enterprises comprised 55%. Wood product exports from furniture factories contributed 47% to the overall wood industry export value, growing at an annual rate of 10%. The furniture industry's robust growth has driven substantial gains in key markets, signifying opportunities for both local and foreign enterprises. This underscores the sector's strong development and potential for domestic expansion.
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Impact of COVID-19 on Vietnam Furniture Market
COVID-19 pandemic adversely affected the Vietnam furniture market. Supply chain disruptions, decreased manufacturing capabilities, and reduced consumer spending posed challenges. Physical store closures led to a shift towards online shopping, altering consumer habits. Moreover, global economic uncertainty affected export demand. Despite initial setbacks, the industry displayed resilience by adapting to remote work trends, embracing e-commerce, and implementing safety measures. The pandemic underscored the importance of agility, innovation, and diversified distribution channels for post-pandemic recovery, accelerating the industry's digital transformation.
Vietnam Furniture Market – By Application
Based on application, the Vietnam furniture market is divided into Home Furniture, Office Furniture, and Hospitality Furniture segments. The home furniture segment dominates the Vietnam furniture market by application due to the essential role that home furnishings play in people's lives. With increasing urbanization, more individuals are investing in comfortable and aesthetically pleasing living spaces. Also, the rising trend of remote work and spending more time at home due to the pandemic has driven demand for home office setups and improved living environments. As a result, the home furniture segment experiences high demand and holds the highest market share, reflecting the significance of creating inviting and functional home spaces.
Competitive Landscape
Major players operating in the Vietnam furniture market include Godrej and Boyce Manufacturing Company Limited, Nilkamal Limited, Featherlite Office Systems Pvt Ltd, IKEA Private Limited, Durian Industries Limited, Forte Furniture Products Private Limited, and Haworth Pvt Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
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