Market Trends of Brazil Furniture Industry
This section covers the major market trends shaping the Brazil Furniture Market according to our research experts:
Bedroom Furniture is the Largest Segment Among Home Furniture Products
Brazil is witnessing an increased demand for home furniture products such as bedrooms and living room furniture products. Home furniture demand is fundamentally increasing from replacement and refreshing of outdated or mal-functioning furniture with furniture that is novel or more functional.
As macroeconomic factors, such as increased spending power and rationality among consumers, persist, the consumers are conditioning their spending on indoor furniture to bring a new appeal to their houses. The Brazilians are staunch consumers of bedroom furniture, and thus, the production for this segment is also the highest. Other widely produced furniture products include office furniture, kitchen furniture, and other furniture.
Increased Construction Activity
Brazil's economy is witnessing a significant expansion, especially in the residential real estate segment. The residential segment is witnessing the highest growth in the real estate sector in-country when compared to all other segments. The housing market showed symptoms of improvement and witnessed a 30% increase in the purchase and construction of real estate in 2019 compared to 2018. Residential property purchases increased by almost 10% in 2019.
Medium and high-end developments are those that have led to the heating of the housing market in 2019. The residential sector largely drives positive construction numbers. The area of infrastructure is expected to improve by 2020, due to advances in sector regulatory frameworks that favor concessions and public-private partnerships. The increase in residential units is expected to fuel the growth of the furniture market as people moving to new households may get new furniture products for their household units.
