Japan Furniture Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The furniture market in Japan is expected to grow at a strong rate during the forecast period. Some of the major factors driving the demand for furniture products in the country include rising disposable income, increasing household and commercial spaces, and rising urbanization. The Japanese furniture industry had evolved from a small market of around 50 billion yen to nearly 3.5 trillion yen in 2019. A significant feature of Japanese furniture consumption is the popularity of high-end furniture and luxury furniture.

The country is witnessing increased construction activity, which has led to the expansion of residential real estate with a significant increase in the number of households in the country. This is boosting the demand for furniture products such as living room and bedroom furniture. The country is also witnessing an increased demand for office furniture products due to the rising consumption of office spaces, fueling the market demand. Japan is also witnessing an increasing demand for exquisite and durable high-end solid wood furniture when setting up a new family, which further boosts the market growth.

The market share of imported furniture in Japan has risen significantly in the last few years. Among imported furniture, wooden furniture occupies the largest proportion, followed by furniture accessories, metal furniture, plastic furniture, etc. With low labor costs, China has become Japan's largest furniture importer accounting for nearly 40% of the total Japanese wooden furniture imports. Some of the other importers of furniture products in Japan are Thailand, Vietnam, Malaysia, the Philippines, Indonesia, Germany, and Italy.

Key Market Trends

Home Furniture is the Largest Segment

Japan is currently witnessing a high demand for home furniture, including the living room and dining room furniture, bedroom furniture, and kitchen furniture. The country is witnessing expanded construction activity with new housing units being built across the country and an increase in the per capita disposable income on consumers, which is rising the demand for home furniture.

The rise in the number of household units and population migration are also contributing to this growth. The household spending on dining-room furniture in the country is also fairly stable although relatively small compared with spending on bedroom items. Japan imports nearly bedroom furniture from China, Vietnam, and other Southeast Asian countries.

Expansion of Single Person Homes Creates Opportunities

The trends in Japan’s housing sector are central to the future of the furniture manufacturing sector. The current upward trend in the country is an increasing number of one-person households in the country, driven by changes in culture and lifestyles, which is one of the major forces to influence furniture demand in the country.

Single-person households are the fastest-growing household group in the country and may eventually become the largest such group in Japan. Singles need less space and can, therefore, save on rent and house-building costs. Due to limited space, furniture needs to be both pleasing and practical. Storage cabinets are popular among singles in small homes, and many other portable furniture may witness increased demand. There is potential for the Japanese furniture market segments to grow, especially for competitively priced items designed for singles in small spaces, such as drawers, cabinets, fold-away dining tables and dining chairs, which is expected to increase the demand for furniture products in the country.

Competitive Landscape

The Japan Furniture Market is fragmented with the presence of local and international players, such as Nitori, Muji, Karimoku, Sankou, and Ikea. The manufacturers are offering a range of styles from traditional Japanese to Scandinavian styles and are focusing on offering products with varied color options and simple designs at reasonable prices.

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• The market estimate (ME) sheet in Excel format
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