The global market for RTA Furniture is expected to grow between 2023 and 2032, due to the growth of internet purchasing, space limitations and urbanization, DIY style and customization, paying attention to functional furniture, and awareness of the environment.
The Global RTA Furniture Market was valued at USD 14.54 Billion in 2022 and is projected to reach USD 26.47 Billion by 2032, registering a CAGR of 5.60 % for the forecast period 2023-2030.
Global RTA Furniture Market Drivers
- Growth of Internet purchasing: Discounts, sales, and package discounts are regularly available on e-commerce sites for RTA furniture. In comparison to traditional retail channels, RTA furniture is more affordable for online shoppers thanks to competitive pricing and special offers. Online shopping makes it easier for customers and RTA furniture manufacturers to access international markets. Without being limited by geographical boundaries, manufacturers can reach a larger customer base and consumers can investigate products from foreign manufacturers.
- Space limitations and urbanization: Because RTA furniture is made to be flat-packed, it can be packed neatly into small boxes. Those who live in cities and might not have a lot of storage space at home will especially benefit from this. The demand for easily transportable furniture that can be delivered to homes and apartments in cities is rising as a result of urbanization. The square footage of many urban homes, including apartments and condos, is constrained. RTA furniture frequently has a compact footprint and is made to accommodate smaller living areas.
- DIY style and customization: RTA furniture appeals to DIY enthusiasts and customers looking for individualized aesthetics because it lets them alter the furniture's look. RTA furniture offers an outlet for personal expression through a variety of finish options and color and pattern combinations. A spirit of creativity and self-expression is fostered by DIY culture. Customers can express their creativity by assembling and customizing furniture pieces to suit their tastes and preferences thanks to RTA furniture's modular and customizable features.
- Paying attention to functional furniture: Expandable and convertible designs are common in RTA furniture, allowing it to adapt to various needs. For instance, a sofa may have a pull-out bed for visitors, or a dining table may have extending sections to seat different numbers of people. The incorporation of intelligent features like integrated USB ports, wireless charging capabilities, and electronic device storage options is one of the innovations in functional RTA furniture. Effective storage options like built-in drawers, shelves, and secret compartments are frequently seen in RTA furniture.
- Awareness of the environment: When compared to fully assembled furniture, the production of RTA furniture frequently uses less energy during the manufacturing process. The streamlined manufacturing process and decreased requirement for large machinery both contribute to energy efficiency and support environmental sustainability objectives. To produce effective packaging with less material waste and a more sustainable approach to furniture manufacturing, manufacturers carefully consider how best to use the materials they use.
- Dorel Signs Definitive Agreement to Sell Sports Segment to Pon Holdings for USD $810 Million (2021)
- GTIS Partners acquires former Ashley Furniture building in Statesville for $14.6M (2022)
- Steinhoff sells UK furniture business to Alteri Investor (2020)
- Pfeifer Group acquires Fabri Tec Structures and Guard-All Building Solutions (2016)
Challenges Impacting the Global RTA Furniture Market
- Challenges related to consumer education: Concerns regarding the stability and safety of RTA furniture may be voiced by some customers. Purchase decisions may be influenced by concerns about structural integrity and the possibility of accidents occurring during or after assembly. Comparing fully assembled or custom-made furniture to RTA furniture may reveal fewer customization options. The limited selection of RTA furniture may make consumers who are looking for extremely customized and distinctive pieces preferable to alternatives.
- Transportation issues: Time constraints may apply to customers when scheduling the delivery of RTA furniture. Delivery in a timely and convenient manner may be hampered by the requirement that you be available to receive and transport the package, which may conflict with work schedules or other obligations. Even though RTA packaging is made to keep the contents safe, accidents can still happen while they are being transported. It might be inconvenient to return partially assembled furniture to the point of purchase for assistance if customers experience problems during the assembly process.
- Quality perception: When compared to solid wood options, the use of particle board, MDF, and other engineered wood in RTA furniture can give rise to questions regarding sturdiness and durability. Certain RTA furniture pieces need complicated assembly procedures, which can cause frustration and mistakes that could lower the piece's perceived quality even more. Compared to handcrafted pieces, the mass production of RTA furniture can occasionally give the impression that the product lacks personalized attention and care.
- Limited customization options: RTA furniture comes in a variety of styles and functions, but because it is pre-designed, there aren't many options for customization. Customers with distinct tastes or space requirements, who want furniture that precisely matches their decor or meets their needs, may find this to be a disadvantage. The lack of customization options in RTA furniture may feel restrictive to customers who are obsessed with personalization. This may cause them to have second thoughts about the purchase because the furniture may not live up to their expectations or blend in well with their current decor.
|Market Size in 2022
|USD 14.54 Billion
|Market Forecast in 2032
|USD 26.47 Billion
|Compound Annual Growth Rate (CAGR)
|Revenue (USD Million) and Volume (Kilo Tons)
|By Material, By Application & By Region
|2018 - 2022
|2023 - 2032
- Wood: Because of its superior appearance, increased durability, and stronger dependability, this material has taken the lead in the furniture industry and is a crucial component of the home furnishings market. To give the products an attractive appearance, various types of wood, including engineered wood, Sheesham wood, and solid wood, are used in the production of RTA wooden fixtures.
- Glass: Glass is prized for having a sleek, contemporary appearance. Glass-infused RTA furniture might be appealing to buyers looking for sleek, modern styles. Glass is a material that is adaptable and can be used to make a variety of furniture items, such as cabinets, shelves, and tables. RTA furniture can have a wide range of design options thanks to its versatility. Glass is frequently thought of as being elegant and high-quality. The high-quality glass used by manufacturers in RTA furniture could help to improve customer perception.
- Steel: The use of steel furniture frames has expanded in the RTA product industry due to consumer preference for these materials. Additionally, because steel furniture has a strong bearing capacity and a longer lifespan, consumers rely heavily on it. Additionally, the segment has grown as a result of the increased use of steel in the production of RTA shelves and storage organizers due to the rigid and stronghold of bolts.
- Home: With more high-rise buildings being built, the ease of transporting such furniture to customers' homes is a major factor driving the household application segment. Because it is lightweight and adaptable, this RTA furniture helps create a more spacious impression within homes. In addition, manufacturers are pushing innovation more and more to give wealthy customers a better experience.
- Office: Due to their low capital requirements and strong preference for savings, the surge in startups in developing nations like China, India, and Vietnam has encouraged business owners to invest in this type of furniture. Due to the low budget investment allocated to office décor and furnishing with convenient shelving and storage, offices and businesses are using these types of furniture.
- United States: The consumer market in the United States frequently favors economical solutions, and ready-to-assemble furniture (RTA) is renowned for being more affordable than fully assembled alternatives. The demand for RTA furniture may increase due to the price-conscious consumer base. RTA furniture is ideally suited for online sales, and the United States has been a significant center for e-commerce and online retail. The ease of buying flat-packed furniture online fits with American consumers' preferences and propels the market's expansion.
- Canada: The popularity of RTA options may be attributed to the prevalence of a do-it-yourself (DIY) culture, wherein consumers take pleasure in assembling and personalizing their furniture. Because of its ease of use, RTA furniture may be a wise option for customers who do not have access to large vehicles for transporting fully assembled furniture. The existence of furniture-focused internet retailers, including RTA choices, might influence the market share in Canada. RTA solutions may be preferred by customers searching online for a wide range of options at affordable prices.
- China: China is a desirable location for RTA furniture production because of its economical production methods, which include reduced labor expenses. Chinese manufacturers can offer competitive prices in the global market because they can produce high-quality furniture at a lower cost. Particularly in the area of RTA furniture production, Chinese manufacturers have amassed a substantial amount of knowledge and experience. Improvements in manufacturing procedures, quality assurance, and creative design capabilities are the results of the industry's maturation over time.
- India: The increasing number of Indians living in cities due to the country's ongoing urbanization trend could increase demand for RTA furniture, which is known for its portability, convenience, and space-saving features. The expansion of online shopping in India gives customers access to a large selection of furniture options, including RTA furniture. Customers can browse and buy furniture online from the comfort of their homes. Comparing RTA furniture to fully assembled furniture, the former is frequently less expensive. In an industry where consumers are price sensitive, such as India, affordability can have a big impact on what they decide to buy.
- Southeast Asia: Compact living spaces are typical in Southeast Asia's highly populated urban areas. RTA furniture addresses the spatial limitations of urban living with its space-saving and modular designs, making it ideal for apartments and smaller homes. Southeast Asia is not an exception to the growing global appeal of the Do-It-Yourself (DIY) culture. RTA furniture gives customers a sense of accomplishment by enabling do-it-yourself assembly. Furthermore, people who seek individualized solutions find some RTA furniture to be appealing due to its customizable options.
- Western Europe: Comparatively speaking to other regions, Western European countries often have higher disposable incomes. Because of this and a societal focus on usefulness and functionality, customers in the area are more accepting of reasonably priced and compact furniture options like RTA. Western Europe is where major producers of RTA furniture, like IKEA, Gautier, and BoConcept, got their start. These businesses have made a substantial contribution to the development and widespread use of RTA furniture both locally and internationally.
- Eastern Europe: Compared to Western Europe, the economies of Eastern Europe have cheaper manufacturing costs and wages. This makes it possible for producers of RTA furniture to create items at more affordable costs, which greatly appeals to customers on a tight budget. People in many Eastern European countries are used to doing their own furniture repairs and assembly, and DIY trends are strong in these regions. This is exactly in line with the nature of RTA furniture, which is usually delivered flat and needs to be assembled. In Eastern Europe, as in many other urbanized regions, apartment living is common.
- Brazil: Brazil's middle class is growing, and as a result, people are spending more money on furniture and home renovations. To boost the domestic furniture industry, the Brazilian government has put policies and incentives in place. These include tax breaks and initiatives that encourage low-income families to apply for credit. Wider market penetration and a favorable environment for RTA furniture manufacturers are fostered by this support. The reach of RTA furniture brands has increased dramatically as a result of Brazil's e-commerce industry's explosive growth.
- Mexico: Favorable trade agreements, such as the North American Free Trade Agreement (NAFTA), provide Mexico with preferential access to the US market and lower tariffs on furniture exports under the RTA. To encourage foreign investment in the furniture manufacturing industry, the Mexican government provides a range of incentives and subsidies, which helps to accelerate the production of RTA furniture. Mexico has a highly skilled labor force with prior experience making furniture, which guarantees the effectiveness and quality of RTA production.
- Middle East: The Middle East has seen a rise in urbanization, similar to many other regions, especially in nations like Saudi Arabia, the United Arab Emirates, and Qatar. Due to the increase in demand for housing and furniture brought about by this population growth in cities, there is a perfect market for accessible and reasonably priced RTA options. Homeownership is highly valued in many Middle Eastern cultures, and furnishing new homes with furniture is especially important when relocating.
- Africa: African youth are becoming more and more drawn to contemporary and practical furniture designs. RTA furniture fits this preference and provides a chic substitute for traditional furniture with its simple lines and space-saving features. Africa is seeing an increase in the production of local RTA furniture thanks to both public and private initiatives. This lowers consumer costs, lessens dependency on imports, and generates jobs locally.
- Australia and New Zealand: DIY (Do-It-Yourself) is very popular in both Australia and New Zealand, where most people feel at ease putting together furniture themselves. This makes RTA furniture ideal for these markets due to its flat-pack design and assembly instructions. In both countries, housing is typically smaller than in many other urbanized regions. Because of its adaptability and space-saving designs, RTA furniture is ideal for these small homes and apartments. Compared to the global average, Australians and New Zealanders are often more mobile, moving frequently for work or to change their lifestyle.
List of Prominent Players:
- IKEA Systems B.V.
- Dorel Industries Inc.
- Ashley Home Stores, Ltd.
- Steinhoff International
- Tvilum A/S
- Simplicity Sofas
- Home Reserve
- Sauder Woodworking Company
- Bush Industries, Inc.
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, UK, Italy, Spain, Rest of Europe)
- Asia Pacific (China, Japan, India, Southeast Asia, Rest of APAC)
- Latin America (Brazil, Argentina, Rest of Latin America)
- Middle East & Africa (GCC Countries, UAE, Rest of MEA)