Turkey Furniture Market Outlook to 2028

Turkey Furniture Market Overview

• In 2023, the Turkey Furniture Market was valued at USD 7 billion, up from USD 6 billion in 2018, reflecting a Compound Annual Growth Rate (CAGR) of 3.1%. This growth is driven by several key factors, including increased urbanization, rising disposable incomes, and the expansion of the middle class.
• The Turkey furniture market is highly competitive, with several key players dominating the landscape. Some of the prominent companies include Kelebek Mobilya, DoÄŸtaÅŸ Mobilya, IKEA Turkey, Bellona and Istikbal. These companies have established strong brand identities and extensive distribution networks, making them influential players in the market.
• In 2023, DoÄŸtaÅŸ Mobilya announced a strategic partnership with an Italy-based furniture designer, Shernon Holding S.R.L., aiming to introduce a new premium furniture line in Turkey. This move is expected to enhance its market position by catering to the high-end market segment and attracting customers seeking luxury and designer furniture.

Turkey Furniture Current Market Analysis

• The increase in disposable incomes has allowed consumers to spend more on home furnishings. Turkey’s GDP per capita rose from USD 9568.8 in 2018 to USD 12,985.5 in 2023, facilitating higher expenditure on furniture.
• Furniture market in Turkey has a substantial impact on the economy, contributing to employment and GDP. The sector employs over 250,000 people, from manufacturing to retail. The market also supports ancillary industries such as textiles, woodworking, and logistics, creating a broad economic impact.
• Marmara Region, particularly Istanbul, dominates the Turkish furniture market. Istanbul, being the economic hub, accounts for a substantial share of the total market revenue. The region’s dominance is attributed to its high population density, advanced infrastructure, and higher disposable incomes compared to other regions.

Market Segmentation

The Turkey Furniture Market can be segmented based on several factors:

By Product Type: In 2023, the Turkey furniture market is segmented by product type segmented into living room furniture, bedroom furniture, kitchen furniture, office furniture & others. Bedroom furniture reigns as the most dominant sub-segment, holding a substantial market share. With the growth of the Turkish economy, disposable income levels have increased, allowing more people to invest in higher-quality and diverse bedroom furniture.

By Material: In 2023, the Turkey furniture market is segmented by material into wood, metal, plastics & others. Wood emerges as the most dominant sub-segment, commanding a significant percentage of the market share. Wood remains the most popular material due to its durability, aesthetic appeal, and traditional preference in Turkish furniture design.

By Distribution Channel: In 2023, the Turkey furniture market is segmented by distribution channel into online stores, offline stores & specialty stores. In 2023, the offline segment prevails due to consumer preference for physically experiencing the product before purchase and the established retail culture. They prefer to assess the comfort, quality, and aesthetic appeal of furniture items firsthand before committing to a purchase.

Turkey Furniture Market Competitive Landscape

• In 2023, Bellona launched a new collection of modular furniture designed to meet the growing demand for customizable and space-saving solutions. Models like the Elegant Sectional, feature a chaise lounge that can be positioned on either side, allowing for customizable seating arrangements
• In 2023, IKEA Turkey announced the opening of its largest store in the country in Istanbul, spanning 50,000 square meters. This new store is expected to boost IKEA’s market share and cater to the growing demand for modern and affordable furniture.
• Kelebek Mobilya introduced a new line of eco-friendly furniture in 2023, using sustainable materials and processes. This initiative aligns with the global trend towards sustainability and appeals to environmentally conscious consumers.

Turkey Furniture Industry Analysis

Turkey Furniture Market Growth Drivers:

• Tourism and Hospitality Sector: Turkey's thriving tourism industry has been a significant growth driver for the commercial furniture market. In 2023, Turkey attracted 49.2 million tourists, contributing to a booming hospitality sector. Hotels, restaurants, and cafes are investing heavily in high-quality and aesthetically pleasing furniture to enhance guest experiences and compete in the market.
• Export Potential: Turkey's strategic location, bridging Europe and Asia, has positioned it as a key player in the global furniture market. Turkish furniture exports’ value reached $4.8 billion in 2021. The government's efforts to promote the "Made in Turkey" brand and improve trade relations have further enhanced the country's export potential, driving growth in the furniture manufacturing sector.
• Growing E-commerce and Online Retail: The rise of e-commerce and online retail has revolutionized the furniture market in Turkey, providing consumers with convenient access to a wide range of furniture products. Towards the end of 2023, Turkey recorded 653 million ecommerce transactions, which was a 16.5% growth from previous year. Emergence of online platforms and marketplaces has enabled furniture manufacturers and retailers to reach a broader audience.

Turkey Furniture Market Challenges:

• Raw Material Costs: The volatility in raw material costs, particularly wood, metals, and textiles, poses a significant challenge for the Turkish furniture industry. In the spring of 2021, lumber prices reached an all-time high of $1,515 per thousand board feet, representing a substantial increase from the pre-pandemic price range of $350 to $500. This volatility makes it difficult for manufacturers to maintain stable pricing, affecting their competitiveness.
• Competitive Market Landscape Turkish furniture market is highly competitive, with numerous domestic and international players vying for market share. Entry of global brands like IKEA has raised the bar for quality and design, challenging local manufacturers to meet international standards. As a result, maintaining a competitive edge requires significant investment in R&D and marketing.

Turkey Furniture Market Government Initiatives

• National Industrial Strategy (2021) The Turkish government introduced the National Industrial Strategy in 2021, focusing on the modernization of the manufacturing sector. This strategy includes specific measures to support the furniture industry, such as R&D incentives, skill development programs, and tax benefits. The initiative aims to enhance the sector's competitiveness, increase production efficiency, and promote technological advancements in furniture manufacturing.
• Green Deal Action Plan (2021): To align with the EU Green Deal, Turkey launched its own Green Deal Action Plan in 2021, promoting sustainable practices in various industries, including furniture manufacturing. This initiative encourages the use of eco-friendly materials, energy-efficient processes, and waste reduction measures.
• Export Promotion Policies: The Turkish government has implemented several policies to promote furniture exports, aiming to enhance the country's global market presence. The Turkish Exporters Assembly provides financial support, market research, and trade mission assistance to furniture exporters. As a result, furniture exports grew by 10% in 2022, reaching new markets in Europe, the Middle East, and Africa, and boosting the industry's international competitiveness.

Turkey Furniture Future Market Outlook

The Turkey furniture market is poised for continuous growth, driven by urbanization, rising incomes, and increased housing projects. The shift towards sustainable and smart furniture will further propel market expansion. Technological advancements and innovations in design are expected to enhance product offerings and attract a broader customer base.

Future Market Trends

• Sustainability and Eco-friendly Furniture Consumers are increasingly seeking products made from sustainable materials and those that adhere to environmentally friendly production processes. This trend will drive manufacturers to adopt sustainable practices, such as using FSC-certified wood and low-VOC finishes, aligning with global sustainability standards.
• Smart Furniture Integration The integration of technology into furniture, such as smart beds, connected office desks, and adjustable smart sofas, is becoming increasingly popular. These products offer added convenience, functionality, and a modern lifestyle appeal. This trend will attract tech-savvy consumers and enhancing the overall user experience.
• Customization and Personalization Customizable and personalized furniture options are on the rise, with consumers looking for unique designs that suit their specific needs and preferences. Modular furniture systems, which allow for various configurations and adjustments, are particularly popular. This trend will encourage manufacturers to offer flexible design options and tailor-made solutions, meeting the diverse preferences of modern consumers.