Australia Furniture & Interior Design Market

Australia furniture & interior design market at AUD 17.0 billion, fueled by eco-friendly trends, urban growth, and rising disposable incomes for personalized home solutions.

Region:Asia

Author(s):Geetanshi

Product Code:KRAB2769

Pages:83

Published On:October 2025

About the Report

Base Year 2024

Australia Furniture & Interior Design Market Overview

  • The Australia Furniture & Interior Design Market is valued at AUD 17.0 billion, based on a five-year historical analysis. This market size reflects the combined value of the home furniture and interior design sectors, with home furniture accounting for the majority share. Growth is primarily driven by increasing consumer spending on home improvement, robust residential construction activity, and a rising trend towards sustainable and eco-friendly furniture options. The market has also seen a significant shift towards online shopping, enhancing sales and accessibility for consumers. Key growth drivers include the adoption of open-plan living, multifunctional layouts, and a preference for modular and customizable furniture solutions, particularly among younger homeowners who prioritize personalization and sustainability .
  • Key cities dominating the market include Sydney, Melbourne, and Brisbane. Sydney's role as a financial hub and its diverse population contribute to high demand for both residential and commercial furniture. Melbourne is recognized for its vibrant design scene and cultural diversity, while Brisbane benefits from a growing population and ongoing urban development projects, which drive furniture and interior design sales in the region. These metropolitan areas also lead in the adoption of new design trends and sustainable practices .
  • In 2023, the Australian government implemented the National Construction Code (NCC) 2022, issued by the Australian Building Codes Board. The NCC mandates updated regulations for sustainable building practices, requiring new residential buildings to meet specific energy efficiency standards. These standards promote the use of sustainable materials in furniture and interior design, influencing market trends towards eco-friendly products and driving innovation in the sector .
Australia Furniture & Interior Design Market Size

Australia Furniture & Interior Design Market Segmentation

By Type:The furniture market is segmented into living room furniture, bedroom furniture, dining room furniture, office furniture, outdoor furniture, custom/modular furniture, storage furniture (cabinets, shelves), and others. Living room furniture remains the most dominant segment, driven by consumer preferences for stylish and functional designs that enhance home aesthetics. The increasing popularity of open-plan living spaces and the demand for versatile, space-saving solutions have further boosted this segment. Custom and modular furniture are gaining traction as consumers seek personalized and adaptable options to suit modern lifestyles and smaller urban dwellings .

Australia Furniture & Interior Design Market segmentation by Type.

By End-User:The market is segmented by end-users: residential, commercial, hospitality, government, educational institutions, and others. The residential segment is the largest, supported by increasing home ownership, renovation activities, and consumer investment in quality furniture that reflects personal style and enhances living spaces. Commercial and hospitality segments are also expanding, driven by business investments in modern workspaces and guest experiences. Educational and government institutions continue to contribute to demand, particularly for durable and ergonomic furniture solutions .

Australia Furniture & Interior Design Market segmentation by End-User.

Australia Furniture & Interior Design Market Competitive Landscape

The Australia Furniture & Interior Design Market is characterized by a dynamic mix of regional and international players. Leading participants such as IKEA Australia, Freedom Furniture, Fantastic Furniture, Harvey Norman, Domayne, Officeworks, Amart Furniture, King Living, Jardan, Design Furniture Co Pty Ltd., Grazia & Co. Pty Ltd., Woods Furniture Pty Ltd., Advanta Group Pty Ltd., Alpha Office Furniture Pty Ltd., Koala, The Furniture Trader, Plush Sofas, Krost Furniture Pty Ltd., Matic Furniture Pty Ltd., HAY Australia, Zinus, Lama Furniture Australia, Fursys contribute to innovation, geographic expansion, and service delivery in this space.

IKEA Australia

1975

Tempe, NSW

Freedom Furniture

1981

Melbourne, VIC

Fantastic Furniture

1989

Homebush, NSW

Harvey Norman

1982

Homebush, NSW

Domayne

1990

Sydney, NSW

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Annual Revenue (AUD)

Revenue Growth Rate (%)

Market Share (%)

Number of Retail Outlets/Showrooms

Online Sales Penetration (%)

Australia Furniture & Interior Design Market Industry Analysis

Growth Drivers

  • Increasing Urbanization:Urbanization in Australia is projected to reach 86% in future, with cities like Sydney and Melbourne experiencing significant population growth. This urban influx drives demand for furniture and interior design services, as new residents seek to furnish their homes. The Australian Bureau of Statistics reported that the population in urban areas increased by 1.5 million from 2019 to 2023, highlighting the need for modern, space-efficient furniture solutions tailored to urban living.
  • Rising Disposable Income:The average disposable income in Australia is expected to rise to AUD 1,124 per week in future, up from AUD 1,100 in 2023. This increase allows consumers to invest more in home furnishings and interior design. According to the Australian Bureau of Statistics, household spending on furniture and homewares grew by 5% in 2023, indicating a strong correlation between disposable income and consumer spending in the furniture sector.
  • Growing Demand for Sustainable Furniture:The Australian furniture market is witnessing a shift towards sustainability, with 60% of consumers prioritizing eco-friendly products. The market for sustainable furniture is projected to grow by AUD 500 million in future, driven by increased awareness of environmental issues. Reports from the Furniture Industry Association of Australia indicate that companies adopting sustainable practices are seeing a 20% increase in sales, reflecting consumer preference for environmentally responsible options.

Market Challenges

  • Supply Chain Disruptions:The Australian furniture industry faces significant supply chain challenges, exacerbated by global disruptions. In 2023, 70% of furniture manufacturers reported delays in raw material shipments, leading to increased lead times and costs. The Australian Industry Group noted that these disruptions have resulted in a 15% increase in production costs, impacting profitability and pricing strategies for furniture retailers.
  • Intense Competition:The furniture market in Australia is highly competitive, with over 1,500 registered furniture retailers. This saturation leads to price wars and reduced profit margins. According to IBISWorld, the industry’s profit margin is projected to decline to 5.2% in future, down from 6.1% in 2023. Companies must innovate and differentiate their offerings to maintain market share amidst this fierce competition.

Australia Furniture & Interior Design Market Future Outlook

The future of the Australian furniture and interior design market appears promising, driven by urbanization and a growing emphasis on sustainability. As disposable incomes rise, consumers are expected to invest more in quality furnishings. Additionally, the integration of technology in furniture design is likely to enhance user experience, catering to the tech-savvy population. Companies that adapt to these trends and focus on innovative, eco-friendly solutions will likely thrive in this evolving landscape, ensuring long-term growth and sustainability.

Market Opportunities

  • Growth in Home Renovation Projects:The home renovation market in Australia is projected to reach AUD 40 billion in future, driven by increased consumer interest in home improvement. This trend presents significant opportunities for furniture retailers to offer tailored solutions that meet the evolving needs of homeowners looking to enhance their living spaces.
  • Increasing Popularity of Smart Furniture:The smart furniture segment is expected to grow by AUD 200 million in future, as consumers seek innovative solutions that integrate technology into their homes. This trend offers furniture manufacturers a chance to develop products that enhance convenience and functionality, appealing to tech-savvy consumers looking for modern living solutions.

Scope of the Report

SegmentSub-Segments
By Type

Living Room Furniture

Bedroom Furniture

Dining Room Furniture

Office Furniture

Outdoor Furniture

Custom/Modular Furniture

Storage Furniture (Cabinets, Shelves)

Others

By End-User

Residential

Commercial

Hospitality

Government

Educational Institutions

Others

By Distribution Channel

Online Retail Stores

Specialty Stores

Supermarkets and Hypermarkets

Wholesale Distributors

Direct Sales

Others

By Material

Wood

Metal

Plastic

Fabric/Upholstery

Glass

Others

By Price Range

Budget

Mid-range

Premium

Luxury

Others

By Style

Modern

Traditional

Contemporary

Rustic

Industrial

Scandinavian

Others

By Region

New South Wales

Victoria

Queensland

Western Australia

Australian Capital Territory

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Australian Competition and Consumer Commission, Department of Industry, Science, Energy and Resources)

Manufacturers and Producers

Distributors and Retailers

Interior Designers and Architects

Real Estate Developers

Home Improvement and Renovation Companies

Financial Institutions

Players Mentioned in the Report:

IKEA Australia

Freedom Furniture

Fantastic Furniture

Harvey Norman

Domayne

Officeworks

Amart Furniture

King Living

Jardan

Design Furniture Co Pty Ltd.

Grazia & Co. Pty Ltd.

Woods Furniture Pty Ltd.

Advanta Group Pty Ltd.

Alpha Office Furniture Pty Ltd.

Koala

The Furniture Trader

Plush Sofas

Krost Furniture Pty Ltd.

Matic Furniture Pty Ltd.

HAY Australia

Zinus

Lama Furniture Australia

Fursys

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Australia Furniture & Interior Design Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Australia Furniture & Interior Design Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Australia Furniture & Interior Design Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Urbanization
3.1.2 Rising Disposable Income
3.1.3 Growing Demand for Sustainable Furniture
3.1.4 Expansion of E-commerce Platforms

3.2 Market Challenges

3.2.1 Supply Chain Disruptions
3.2.2 Intense Competition
3.2.3 Fluctuating Raw Material Prices
3.2.4 Changing Consumer Preferences

3.3 Market Opportunities

3.3.1 Growth in Home Renovation Projects
3.3.2 Increasing Popularity of Smart Furniture
3.3.3 Expansion into Regional Markets
3.3.4 Collaborations with Interior Designers

3.4 Market Trends

3.4.1 Shift Towards Minimalist Designs
3.4.2 Rise of Multi-functional Furniture
3.4.3 Emphasis on Eco-friendly Materials
3.4.4 Integration of Technology in Furniture

3.5 Government Regulation

3.5.1 Furniture Safety Standards
3.5.2 Environmental Regulations
3.5.3 Import Tariffs on Furniture
3.5.4 Tax Incentives for Sustainable Practices

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Australia Furniture & Interior Design Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Australia Furniture & Interior Design Market Segmentation

8.1 By Type

8.1.1 Living Room Furniture
8.1.2 Bedroom Furniture
8.1.3 Dining Room Furniture
8.1.4 Office Furniture
8.1.5 Outdoor Furniture
8.1.6 Custom/Modular Furniture
8.1.7 Storage Furniture (Cabinets, Shelves)
8.1.8 Others

8.2 By End-User

8.2.1 Residential
8.2.2 Commercial
8.2.3 Hospitality
8.2.4 Government
8.2.5 Educational Institutions
8.2.6 Others

8.3 By Distribution Channel

8.3.1 Online Retail Stores
8.3.2 Specialty Stores
8.3.3 Supermarkets and Hypermarkets
8.3.4 Wholesale Distributors
8.3.5 Direct Sales
8.3.6 Others

8.4 By Material

8.4.1 Wood
8.4.2 Metal
8.4.3 Plastic
8.4.4 Fabric/Upholstery
8.4.5 Glass
8.4.6 Others

8.5 By Price Range

8.5.1 Budget
8.5.2 Mid-range
8.5.3 Premium
8.5.4 Luxury
8.5.5 Others

8.6 By Style

8.6.1 Modern
8.6.2 Traditional
8.6.3 Contemporary
8.6.4 Rustic
8.6.5 Industrial
8.6.6 Scandinavian
8.6.7 Others

8.7 By Region

8.7.1 New South Wales
8.7.2 Victoria
8.7.3 Queensland
8.7.4 Western Australia
8.7.5 Australian Capital Territory
8.7.6 Others

9. Australia Furniture & Interior Design Market Competitive Analysis

9.1 Market Share of Key Players

9.2 KPIs for Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Annual Revenue (AUD)
9.2.4 Revenue Growth Rate (%)
9.2.5 Market Share (%)
9.2.6 Number of Retail Outlets/Showrooms
9.2.7 Online Sales Penetration (%)
9.2.8 Customer Retention Rate (%)
9.2.9 Average Order Value (AUD)
9.2.10 Product Return Rate (%)
9.2.11 Brand Awareness Index
9.2.12 Distribution Network Coverage
9.2.13 Sustainability Initiatives (e.g., % of eco-friendly products)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 List of Major Companies

9.5.1 IKEA Australia
9.5.2 Freedom Furniture
9.5.3 Fantastic Furniture
9.5.4 Harvey Norman
9.5.5 Domayne
9.5.6 Officeworks
9.5.7 Amart Furniture
9.5.8 King Living
9.5.9 Jardan
9.5.10 Design Furniture Co Pty Ltd.
9.5.11 Grazia & Co. Pty Ltd.
9.5.12 Woods Furniture Pty Ltd.
9.5.13 Advanta Group Pty Ltd.
9.5.14 Alpha Office Furniture Pty Ltd.
9.5.15 Koala
9.5.16 The Furniture Trader
9.5.17 Plush Sofas
9.5.18 Krost Furniture Pty Ltd.
9.5.19 Matic Furniture Pty Ltd.
9.5.20 HAY Australia
9.5.21 Zinus
9.5.22 Lama Furniture Australia
9.5.23 Fursys

10. Australia Furniture & Interior Design Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Budget Allocation Trends
10.1.2 Preferred Suppliers
10.1.3 Procurement Processes
10.1.4 Sustainability Considerations

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Trends
10.2.2 Key Projects
10.2.3 Budget Prioritization

10.3 Pain Point Analysis by End-User Category

10.3.1 Quality Concerns
10.3.2 Delivery Timeliness
10.3.3 Customization Needs

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Training Requirements
10.4.3 Technology Adoption

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 User Feedback
10.5.3 Future Investment Plans

11. Australia Furniture & Interior Design Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from Australian furniture and interior design associations
  • Review of market trends and consumer behavior studies published by design magazines and journals
  • Examination of government publications on housing and construction statistics relevant to furniture demand

Primary Research

  • Interviews with interior designers and architects to understand design trends and consumer preferences
  • Surveys with furniture retailers to gather insights on sales performance and inventory management
  • Focus groups with consumers to assess preferences in furniture styles, materials, and sustainability

Validation & Triangulation

  • Cross-validation of findings through comparison with historical sales data and market reports
  • Triangulation of insights from primary interviews with secondary data sources
  • Sanity checks conducted through expert panel discussions with industry veterans

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national furniture sales data and growth rates
  • Segmentation of the market by product categories such as residential, commercial, and custom furniture
  • Incorporation of macroeconomic factors such as housing starts and renovation trends influencing furniture demand

Bottom-up Modeling

  • Collection of sales data from leading furniture manufacturers and retailers
  • Estimation of average selling prices across different furniture categories
  • Calculation of market size based on unit sales and revenue generation from various segments

Forecasting & Scenario Analysis

  • Development of growth projections based on historical trends and economic indicators
  • Scenario analysis considering factors such as consumer spending shifts and sustainability trends
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Residential Furniture Retailers100Store Managers, Sales Representatives
Commercial Interior Designers80Lead Designers, Project Managers
Furniture Manufacturers60Production Managers, Marketing Directors
Consumer Focus Groups40Homeowners, Renters
Online Furniture Retailers70E-commerce Managers, Digital Marketing Specialists

Frequently Asked Questions

What is the current value of the Australia Furniture & Interior Design Market?

The Australia Furniture & Interior Design Market is valued at approximately AUD 17.0 billion, reflecting the combined value of home furniture and interior design sectors, with home furniture accounting for the majority share of this market.

What are the key growth drivers in the Australian furniture market?

Which cities are leading in the Australian furniture market?

How has urbanization impacted the furniture market in Australia?

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