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How many pieces of furniture do Americans or American households purchase per year? And how much do they spend?
Hello! It is my pleasure to respond to your query in providing you with an overview of current purchases of home furnishings by Americans, as well as an historical comparison with the last decade-and-a-half of purchases.
We’ll begin with the current Home Furniture Market (2014 – 2016/2019).Please Note: The current market data will come from 2014 – 2016 (using publicly-available statistics and data), while the historical data will come from as far back as 2004, which is the first year that expenditures of this type seemed to be outlined by industry leaders. After this, we’ll get into the historical data from 2000 – 2013, then we’ll finish with some trends we can expect in the future in this market.
As requested, I have provided as many statistics as possible, with clear breakdowns in the data, where available. I hope you find this research helpful and useful in meeting your needs.
CURRENT HOME FURNITURE MARKET (2014 – 2016/2019)
For this section, we’ll discuss the Current Market Value, Demographics, Spending, Average Annual Expenditures, and Per-Capita Spending. This information, as stated, comes from 2014 – 2016/2019 – from sources that include publicly-available information only (not behind paywalls, which we cannot access). Most comprehensive breakdowns of data from 2015 and 2016 are behind paywalls, so to give you the most accurate overall picture, much of the data below comes from 2014 (from which we can get a solid base estimate).
MARKET VALUE: According to FBICGroup, the US Furniture Market was worth approximately $96.4 B in 2014. Using their estimated CAGR of 2.9%, we can calculate that the 2015 market was worth approximately $99.2 B and the value of the market in 2016 was approximately $102.76 B. Using this calculation, we can estimate the market value in 2017 to be in the neighborhood of $105.74 B. They estimate the market will be worth $111 B in 2019.
1. Ashley Homestore
2. IKEA
3. Mattress Firm
4. Williams-Sonoma
5. Rooms-To-Go
6. Berkshire Hathaway
7. Restoration Hardware
8. Pier 1 Imports
9. Big Lots
10. Sleep Number
DEMOGRAPHICS: FBICGroup reports that Millennials were the biggest consumers of home furnishings in 2014 representing 37% of the buyers in this market (a huge change from the 14% they represented in 2012). GenXers represented 30% of buyers, while Baby Boomers represented 29%, and Seniors represented only 4% of furniture buyers. FBICGroup warns that wholesalers and retailers should take note that Millennials’ spending habits on these items differs than those of previous generations. They state that, “Factors such as affordability of housing in productive labor markets, student debt and the growth of the sharing economy have led young adults to delay living independently and forming households. This means Millennials are often looking for smaller, multifunctional and affordable furniture that fits into a dynamic and urban lifestyle”.
SPENDING: The AHFA reports that, between 2014 and 2015, there was a 5% growth across retail purchases for this industry. The FBICGroup reports that, between 2012 and 2014, Millennials’ spending on home furnishings increased by 142% (from $11.1 B to $27 B). During this same period, GenXers spending increased 43%, and, despite being the biggest purchasers of furniture during the period, Baby Boomers’ transaction values declined by about 17%. They also discuss that, in 2014, Millennials represented 28% of the total spend on home furnishings, while Baby Boomers accounted for 36% of total spend. GenX spenders accounted for 33% of the total spend, with Seniors coming in at only 3% of total spend.
If we do a little math, we can see approximately how much each group spent on home furnishings that year.
• Millennials: $96.4 B X 28% = $26.99 B
• GenXers: $96.4 B X 33% = $31.8 B
• Baby Boomers: $96.4 B X 36% = $34.7 B
• Seniors: $96.4 B X 3% = $2.9 B
In greater detail, FungGlobalRetailTech outlines the “expected 2016 living room redecoration expenditures” in the US by age group:
• All Consumers: $2200
• Millennials: $1500
• Generation X: $2500
• Baby Boomers: $3000
AVERAGE ANNUAL EXPENDITURES: For other data, we can look to the Bureau of Labor Statistics, which tells us what the average annual expenditure on “household furnishings and equipment” per-American-household was in 2014 – 2015 (2016 has not yet been released).
If we estimate that the average piece of furniture costs anywhere from $250 - $1000, we can assume that the average American household in 2014 purchased between 1 – 6 pieces of furniture. Since spending has only gone up between 2014 and 2016 (as you can see by the 2015 increase), we know that this number has increased, though not appreciably (meaning: by maybe 1 or 2 pieces maximum). So, we can logically estimate that, in 2016, the average American household purchased between 1 – 7 or 8 pieces of furniture.
PER CAPITA SPENDING: Statista notes that the estimated per-person / per-capita spending on furniture and home furnishings in 2014 was $313.
Now that we’ve discussed the current market, let’s look at some historical trends.
HISTORICAL TRENDS & STATISTICS ON US HOME FURNITURE SALES (2000 – 2013)
For this section, we’ll look at the changes in market value (in-brief), demographics, average annual expenditure per-household, and per-capita (per-person) spending for the years 2000 – 2013.
MARKET VALUE CHANGES-IN-BRIEF: As we can expect, during the recession and housing crisis of 2007 – 2011, furniture sales took a huge dip as markets fluctuated. This was in large part due to the losses by Americans of so many homes, as well as the reduction in jobs and discretionary spending funds.
If you’d like a graph showing the furniture and home furnishings store sales in the US from 1992 to 2014, you can see this report from Statista. Please Note: These figures do not represent the entire market, rather just sales from this specific type of stores.
AVERAGE ANNUAL EXPENDITURES: The BLS reports the following average annual expenditures on home furnishings in the noted years:
Visual.ly reports that, in 2012, Americans spent about 4.1% of their annual income on furniture and household furnishings.
PER CAPITA SPENDING: Statista breaks down the estimated per-capita (per-person) expenditures on furniture and home furnishings for the years noted:
• 2013: $301
• 2012: $291
• 2011: $281
• 2010: $276
• 2009: $277
• 2008: $325
• 2007: $369
• 2006: $378
• 2005: $369
• 2004: $354
• 2003: $333
• 2002: $328
• 2001: $321
• 2000: $323
As you can see from the numbers in the sections above, the recession had a significant impact on the average yearly furniture purchases of American households, as well as the per-person spend. You can also see, from the data previously presented, that the recovery is working in this industry’s favor, and is expected to continue to do so in the future, according to industry experts.
For additional historical data – broken down into a variety of different segments, please refer to this report by FungGlobalRetailTech. Also, if you’d like to go back even further, BEA.gov details Trends in Consumer Spending 1959 – 2000, which may provide you with even more relevant information for your research.
FUTURE TRENDS WE CAN EXPECT
Let’s look at current and future trends in this market, as discussed by FungGlobalRetailTech and MarketResearch.
• US consumers prefer quality and durability over cost in their purchases, as well as multi-functional, versatile furniture.
• Americans are buying more outdoor furniture than ever before, with sales climbing from $3.7 B in 2010 all the way to $4.39 B in 2015 (CAGR 3.48%).
• Vintage pieces and environmentally-conscious options are increasing in sales, and increasing numbers of furniture vendors are “going green”.
• Consumers prefer short delivery times and domestic manufacturers.
• Virtual Reality / Augmented Reality have affected and will continue to positively affect sales in this market.
• Increases in telecommuting workers is increasing demand for home office furniture, while a recovering economy is fueling growth of the luxury furniture market.
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SUMMARY
Americans bought an average of 1 - 7 pieces of furniture for their households in 2014 and spent approximately $1581, or about $313 per person on those purchases. Comparatively, in 2004, American households each spent approximately $1646 on home furnishings, averaging about $354 per-individual on these purchases.
The historical data demonstrates that the recession hit the furniture market hard, and that the market has been slow to recover. Experts anticipate continued slow recovery in this market through 2019.
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Thank you again for your question, and I hope this information gives you what you need. Please contact Wonder again for any other questions you may have!