Monday, January 1, 2024
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The United Kingdom is considered as the second-largest furniture market in Europe after Germany. The country is the second home furniture consumer in Western Europe (WE), and provides about 17% of the WE demand. Aided by growing financial and environmental concerns among consumers, the UK furniture resale market is forecast to grow by 40.8% between 2022 and 2027 to reach a value of £1,101 million, outpacing the total furniture market, which is set to increase by 7.9% in the same period, according to GlobalData, a leading data and analytics company.
Sophie Mitchell, Retail Analyst at GlobalData, comments: “The furniture resale market is ramping up, with an increasing number of players becoming active within the market such as Rehome and Vinterior, alongside furniture market leaders such as IKEA adding resale options to their offer. These players are stimulating the resale market as they are more able to meet changing consumer expectations and demand than traditional antique and charity shops.”
Mitchell continues: “This demographic will drive the growth of the furniture resale market in the future. These younger consumers are not only generally more concerned about the environmental impacts of new products but are also facing a challenging housing market.”
According to the GlobalData’s latest report, ‘UK Sector Series: Furniture Resale Market, 2022-2027’ reveals that 26.5% of consumers would consider purchasing furniture via resale in the future, indicating the potential for growth within the market as it becomes more acceptable and accessible.
Younger demographics are driving growth within the market, with the highest purchase penetration being among 24-34-year-olds, who account for 10.7% of the total purchased resale furniture in the past year.
Mortgage rates remain around the 6% mark on average, far higher than those seen in the past decade. ONS figures also show that the average UK house price has increased by 73% between January 2013 and January 2023. The resale market is therefore crucial for kitting out homes, as consumers will be on tighter budgets if they do manage to buy – and this is especially the case for first-time buyers.
Removing barriers to purchasing resale furniture is also paramount to the growth of the market.
“For retailers to succeed in resale ventures, they must remove the barriers to purchase, making resale as easy as buying new. For instance, detailed product information, clear imagery, transparency around product condition, accurate location tools, and alerts will all encourage consumers to purchase furniture.” concluded Mitchell.
Source: Global Data
Read more news on: Furniture Market
Tags: furniture industry, furniture market, UK market, wood and panel
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