17 Australian Furniture Industry Statistics, Trends & Analysis

The furniture industry in Australia has seen some challenging times over the past few years, including several significant moments of crises. Through these challenges, there was minimal growth experienced by the active firms, achieving an average growth rate over the past five years of just 1.4%.

Trading conditions in the retail industry for Australian furniture were dramatically impacted by the global instability of the financial markets beginning in 2007. Because the size of the industry is smaller compared to other worldwide providers, the changes in value and shifts in preference impact manufacturers and retailers with more significance. Total revenues expected from 2015 sales figures are about $14 billion, despite there being more than 4,500 firms in the industry.

Homeware figures are reported with the furniture segment, with the annual growth rate through 2023 expected to be close to 17%. If that occurs, the total market volume for the Australian furniture industry could reach $1.9 billion. Total user penetration for the industry stands at 10.5%, with the average revenue per user currently totaling $389.

Here are the critical statistics to review for the Australian furniture industry.

All figures listed in this content are in Australian dollars.

Interesting Australian Furniture Industry Statistics

#1. Furniture retailing in Australia currently provides employment opportunities for over 26,000 full-time workers. For every $1 spent on costs, another $8.67 is spent on wages, according to figures released for the 2018 sales year. (IBIS World)

#2. 68% of shoppers say that they prefer a single source when looking at their furniture options online, while 40% say that they are prepared to purchase an item of furniture if the conditions for them are right at that moment. (Informa Australia)

#3. About 1.6 million people identify themselves as a potential buyer of Australian furniture over the course of a year. (Informa Australia)

#4. 29% of people who say that they are interested in Australian furniture state that their preference is to purchase something online right away, but the desire is to purchase affordable items instead of expensive luxury products. (Informa Australia)

#5. Household goods moved to the top of all non-food retail categories for the Australian economy in 20178, with 5.8% real turnover growth achieved by industry professionals. (Deloitte)

#6. The total value of the online home furnishing industry based in Australia could be worth over $407 million by the year 2023 if the current shopping trends continue to hold. (IBIS World)

#7. Furniture manufacturing in Australia provides about $2.6 billion of industry value to the local economy each year. About 5,000 manufacturers are currently active, employing over 54,000 people. Most of the items built by the industry come from sawnwood which is locally sourced. (Australian Bureau of Statistics)

#8. 96% of the Australian furniture industry is comprised of either small manufacturers or sole traders who employ 20 or fewer people over the course of a year. (Australian Bureau of Statistics)

#9. There are currently 85,000 businesses operating within the four-digit ANZSIC classes that are associated with the furniture industry in Australia. Over 60% of the firms do not employ anyone, while just 1.5% of them have more than 20 employees. (Australian Bureau of Statistics)

#10. Carpentry-related services are the most significant segment of the Australian furniture industry, accounting for almost 50% of the total number of firms which are currently active. There are about 5,000 firms in the classification for wooden furniture and upholstered seat manufacturing. (Australian Bureau of Statistics)

#11. 48% of the sales that the furniture industry in Australia generates each year involves either dining or lounge furniture. Bedroom furniture holds a 32% share of the market. Blinds and awnings follow in third at 9%, then outdoor and garden furniture (8%), and finally the “other” category (3%). (IBIS World)

#12. 80% of the furniture retailers currently active for the industry are located along the eastern seaboard of the country, which follows the continental population distribution as well. (IBSA Manufacturing)

#13. Renovations are what drive the demand for new bathroom and kitchen furnishings for the industry, with 65% of the sales occurring for homes which are between 11-20 years old. The total number of bathroom installations in new homes rose by 4% in 2017, even though total installations declined by 8% the same year. (IBSA Manufacturing)

#14. 46% of the furniture products manufacturing in Australia are for upholstered wooden furniture. 43% of the industry involves non-upholstered wooden furniture, with the remaining products involving upholstered seats for public transportation. (IBIS World)

#15. 75% of the businesses involved in the Australian furniture industry are located in either New South Wales, Victoria, or Queensland. (IBSA Manufacturing)

#16. Metal furniture manufacturing is a small, but growing market segment for the Australian industry, generating about $6 million each year. (IBIS World)

#17. Over 70% of the total VET activity for 2016 enrollments involve individuals who are 24 years of age or younger. Fewer than 5% of the students involved in accredited MSF furnishing qualifications were above the age of 50. (IBSA Manufacturing)

Australian Furniture Industry Trends and Analysis

The Australian furniture industry may be small, and its size might experience influences more significantly due to financial instability that others would not, but it is still growing. Some estimates suggest that the CAGR for the industry could be as high as 7% through 2022 because of a growing infrastructure, additional online availability, and growing nuclear families looking for local items to purchase.

With the element of size under consideration, it is essential to point out that only a handful of firms control the primary segments of this industry. About 5 retailers currently dominate the e-commerce platforms for Australian furniture, while four manufacturers are responsible for the vast majority of products which make it to the market in the home, office, and institutional market segments.

If economic circumstances remain somewhat stable in the coming years, then expect the Australian furniture industry to continue growing with slow and steady persistence. Should there be another global disruption of the financial markets, however, there could be trouble waiting for the active firms in this industry.