3 trends shaping the furniture industry in 2025

2025.03.03

With the new year comes refreshed expectations across the furniture industry. In 2025, consumers are looking for more responsibly made, higher-quality, customizable furniture. At the same time, they want cheaper furniture to match their waning purchasing power.

Brands must therefore respond to this dual challenge by offering better furniture at a lower price. As today’s companies continue to merge corporate social responsibility and economics — a movement known as Econogy — brands that are choosing both sustainability and profitability will remain ahead of the curve. Faced with the need to rapidly transform and meet the demands of consumers, the furniture industry is entering a new era in which flexibility, durability and innovation will be the watchwords. The players who keep Econogy top of mind and anticipate these changes will be positioned to prosper, and as the sector engages in this evolution, understanding the following trends shaping its future is crucial.

Despite macroeconomic factors, technology-driven production will help reduce costs, allow for increased growth and empower agile competition to thrive in the market.

The pandemic spurred growth in the furniture market — up by nearly 22% in 2020 — but macroeconomic challenges like inflation, declining yet elevated interest rates and limited access to home ownership continue to dampen demand. In 2025, technology and innovation are pivotal in revitalizing sales, with modular and affordable solutions addressing economic constraints.

Mass production is gradually being replaced by flexible, on-demand manufacturing methods that cater to personalization. Automation and reactive production models reduce inventories, shorten lead times and adapt to customer specifications, delivering a tailored experience while aligning with market fluctuations.

Technology is also transforming the furniture-buying journey. Consumers increasingly expect to co-create designs, visualize them in augmented reality and explore virtual showrooms from home. In fact, a recent survey found that 71% of [furniture] customers said they would shop at a store more often if it offered AR, and 40% of customers said they would be willing to pay more for a product if they could experience it through AR. These innovations enhance customer engagement and streamline decision-making, blurring the line between physical and digital furniture experiences in 2025.

Brands will need to diversify their supply chains because of geopolitical tensions and emerging markets.

Geopolitical tensions, protectionism and rising logistics costs are driving companies to reshape supply chains through strategies like friend-shoring and near-shoring. By relocating production closer to key markets or allied regions, businesses aim to bypass trade barriers, cut transport costs and reduce lead times. Automated factories further enhance agility, enabling rapid responses to demand fluctuations.

While China remains a dominant player, emerging markets like Vietnam, Indonesia and India are gaining prominence. Factors such as competitive costs, customs barriers on Chinese goods and growing local demand — especially from India’s expanding middle class — are
attracting investment. By 2025, global furniture production will be more geographically diversified, emphasizing sustainability and proximity.

Consumer choice will revolve around sustainability.

In 2025, tightening environmental regulations will push the furniture industry to adopt more sustainable production practices. Laws like the U.S. Uyghur Forced Labor Prevention Act require brands to use traceable, green-certified materials that meet environmental and social standards. As eco-conscious consumers demand greater accountability, brands that seamlessly integrate sustainability into their marketing strategies will gain a competitive edge.

Sustainability is no longer just an environmental goal; it’s a central pillar of economic strategy. While cost-of-living and inflation continue to play into consumers’ purchasing power and decision-making process, these same shoppers are willing to spend an average of 9.7% more on sustainably produced or sourced goods.

By embracing the synergy of “Econogy,” the furniture industry can navigate the paradox of meeting ecological demands while maintaining robust business models, creating value for both customers and companies.