Valued at $595 billion in 2021, the global market for furniture is expected to grow at an average annual rate of 6% and could exceed $1 trillion by 2030.
This guide explores the most interesting market opportunities for furniture in Africa.
It focuses on the major drivers of the market, the specific market segments with high potential, and important factors to consider before you enter the furniture business in Africa.
This guide also shares three inspiring success stories of African businesses that are exploiting lucrative opportunities in the value chain for furniture products in Africa.
Furniture is a massive and diversified industry with a wide range of product categories for both home and office environments.
The home furniture category comprises several items, fixtures, and fittings that are used in the bedroom, bathroom, living room, kitchen, dining, storage, and outdoor areas.
They include everything from rugs and sofas to curtains, beds, and cabinets.
Africa’s furniture market is estimated at $10 billion. For a continent with 16% of the world’s population, spending on furniture products in Africa currently contributes less than 3% of the total global furniture market.
This makes Africa an attractive growth market for both local and foreign players in the furniture industry.
Based on CSIL research, North Africa, West Africa, and Southern Africa are the most active furniture markets on the continent, with annual spending on furniture items exceeding $500 million in South Africa, Nigeria, Algeria, Egypt, and Morocco.
However, despite significant domestic demand and opportunities for local manufacturers, the African market is currently a net importer of furniture products – only about 60% of furniture is produced locally, and up to $3 billion is spent annually on imports (mainly from China, Italy, and Turkey).
At an estimated annual average growth rate of 7%, spending on furniture products in Africa could reach $100 billion by 2050.
This significant market growth will create several exciting opportunities across the furniture value chain in Africa.