In this article we will take a look at the 10 best furniture companies in the world. You can skip our detailed analysis of the furniture industry’s outlook for 2021 and some of the major growth catalysts for furniture stocks and go directly to 5 Best Furniture Companies in the World.
The global furniture market has experienced tremendous growth over the past few years. Whether luxurious or practical, the need for furniture always remains. Markets for all types of furniture such as living room furniture brands, luxury brands, office furniture, bedroom, and outdoor furniture are experiencing a rise in overall demand. The residential sector has a share of about two-thirds in the overall demand for furniture. According to Statista, the global furniture industry is expected to grow at a CAGR of 5.2% by 2024. The growing residential and commercial construction across the globe and the increasing number of strategic alliances and partnerships are expected to drive the market's growth.
Furniture Industry Outlook
In 2020, the global furniture market was valuated at $509.8 billion. Asia Pacific was the largest region in the global furniture market, accounting for 45% of the market in 2020.North America was the second largest region, accounting for 21% of the global market. Africa was the smallest region in the global furniture market, according to the Business Research Company.
The most significant factor that is driving the growth of the global furniture market is that the younger generation is creating more demand for home furnishing products. The increase in the demand is being met by more online retail stores that are becoming popular around the world. The demand for domestic furniture along with office furniture is continuing to dominate the market and the top furniture companies in the world are well aware of these opportunities and are capitalizing on its momentum.
Companies like Wayfair Inc. (NYSE: W), La-Z-Boy Incorporated (NYSE: LZB), IKEA, Oppein Home Group and Jason’s Furniture have become the key industry players in the furniture market. They are growing their market shares by introducing multi-functional furniture with innovative features such as maximum storage space, stylish and unique designing, customizable products, and other space saving products. In addition to significant demand from a younger demographic, other factors influencing growth are the increasing demand from Asian countries such as China and India and rising disposable income all over the world. The growing demand for do-it-yourself (DIY) furniture products and ready-to-assemble (RTA) is also helping the market to grow further especially in the home and office furniture segments thus helping the market to record more the sales across the globe.
Another important factor that is contributing to this growth is the increasing demand for online shopping. This will also boost the furniture manufacturing market as manufacturers are able to sell their products on a much larger platform than before. Their customer bases have increased geographically. For example, in India, e-commerce portals have significantly boosted the sale of furniture manufacturers by giving them greater access to producers who were previously confined to one market. Certain key manufacturers have risen up to this opportunity and have established themselves as multi-million dollar enterprises in the furniture business.
Here is a list of the 10 best furniture companies in the world.
Best Furniture Companies in the World
10. Haverty Furniture Companies, Inc. (NYSE: HVT)
Revenue: $748 million in 2020 via Yahoo Finance
Haverty Furniture Companies, Inc. was founded in 1885 and has since established itself as a leading retail furniture company in North America. The company started with a single store in Atlanta and now has 120 stores in more than 15 states within the country. Havertys operates as a specialty retailer of residential and office furniture and accessories. It sells its products under the name Havertys. Apart from furniture, they also produce bedding product lines under the brand names of Sealy, Serta and Tempur-Pedic. The price range for their furniture products fall in the middle to upper middle price range which makes it an affordable choice for most Americans. Furniture accounts for more than 85% of the company's sales. HVT ranks 10th in our list of best furniture companies in the world.
9. La-Z-Boy Incorporated (NYSE: LZB)
Revenue: $1.7 billion in 2020 via Yahoo Finance
Another American company that has made to the list is La-Z-Boy, which is popular for its comfortable upholstered recliners, stationary and lift chairs, sleeper sofas and regular sofas. The company was founded in 1927 and is based in Monroe, Michigan. La-Z-Boy operates multiple business units and is divided into three segments: the upholstery group, the casegoods group, and the retail group. Over 11,000 people are employed by the company across the world. Its furniture is not only sold in the US but is distributed under license in several countries including Canada, United Kingdom, Italy, Germany, Indonesia, Australia, Mexico, Turkey, New Zealand, Japan, and South Africa. La-Z-Boy holds international and US patents on over 200 styles and mechanisms in furniture making. The company sells its products under multiple brand names such as Lea Furniture, Hammary Furniture, American Drew, Bauhaus USA Furniture and England Furniture Incorporated. It also acquired the online furniture company Joybird in 2018 for an undisclosed amount. LZB ranks 9th in our list of best furniture companies in the world.
8. Roche Bobois S.A. (Paris: RBO.PA)
Revenue: 274.7 million euros in 2019
Roche Bobois ranks 8th in the list best furniture companies in the world. It is a French retailer of high-end furniture. It was founded in 1960 by the Roche and Chouchan families and now has a network of more than 250 showrooms in 55 countries across the world with its most recent showroom opening in Japan. Headquartered in Paris, France, the company produces sofas, armchairs, chairs, tables, and bed sets. Their products are exclusively produced in Europe with high level of detailed customization which set them apart from their competitors. Most of their furniture pieces are designed by collaborating with famous designers such as Stephen Burks, Sacha Lakic, Ora Ito etc. Roche Bobois has two collections: Les Contemporaines which is inspired and designed by young artists, architects, and designers. This line takes inspiration from modern furniture trends and incorporates unusual ideas and sophisticated materials to make the product unique. The other line is called the Les Nouveaux Classiques collection which has bold interpretations of fashion trends. Recently, the brand has moved into environmentally friendly designing which has gained the attention of many.
7. Wayfair Inc. (NYSE: W)
Revenue: $14.1 billion in 2020
Wayfair Inc. is a Boston-based e-commerce company that sells home-goods and furniture. Founded in 2002, the company was previously known by the name CSN stores. Wayfair now has a global presence with its offices and warehouses located throughout Canada, Ireland, United Kingdom and Germany. The company operated five branded retail websites: the main Wayfair sire, AllModern, Perigold, Joss & Main, and Birch Lane. Their online platform has 14 million items listed for sale from more than 11,000 suppliers around the world, as of 2019. In 2020, Wayfair won the Webby Award for Shopping in the category mobile, voice, and apps. The company currently employs over 2300 engineers and data scientists globally. In the past year, Wayfair shares have rallied more than 240% and the company has achieved a market capitalization of $25.7 billion. With huge online sales, Wayfair deserves a spot on the list of the best furniture companies in the world as it has recently emerged as a key player in the global furniture industry.
6. Williams-Sonoma, Inc. (NYSE: WSM)
Revenue: $5.898 billion in CY 2020
Another popular furniture brand in the US is Williams-Sonoma Inc which is a consumer retail business that primarily deals in home furnishings and kitchenware. The company was founded in 1956 and is currently headquartered in San Francisco, California. It is one of the largest e-commerce retailers and one of the biggest multi-channel specialty retailers in the world. The company was also named in the Fortune 500 companies list in 2019 for the first time. It now also has stores internationally. The fist store in UK was launched in 2014. Williams-Sonoma also signed on for a franchise agreement to open more stores and start its e-commerce sites for six brands in Mexico. The company operates several company brands including Pottery Barn, West Elm, Pottery Barn Kids, Rejuvenation, Williams-Sonoma Home and Mark and Graham. According to Yahoo Finance, the enterprise value of Williams-Sonoma is $14.45 billion as of 2020 which has earned it this spot in our list of best furniture companies in the world.
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Disclosure: None. 10 Best Furniture Companies in the World is originally published on Insider Monkey.