The Importance of Market Research in the Furniture Industry

The furniture industry is anticipated to surpass $850 billion in 2025, but thousands of manufacturers, retailers, and e-commerce brands still develop collections based on gut instinct and not based on data.

When working with professional market research services, recent industry reports indicate that firms outperform in revenue growth & margin anywhere from 25–40 % in revenue growth and margin.

Here’s why market research has become non-negotiable in furniture.

1. Understanding Rapidly Shifting Consumer Preferences

Today’s buyers are no longer choosing between “modern” and “traditional.” A recent study done by a prominent market research company shows that, as of 2025, 58 % of consumers in this country identify with hybrid styles such as Scandi-Japandi, cozy minimalism, or grand-millennial. Without invested research or resources, brands drilled down to either the mid-century modern pieces or simply claimed “this piece is simply timeless,” while demand shifted quietly but significantly toward bouclé upholstery and curved silhouettes and in warm earth tones.

2. Predicting Material and Sustainability Trends Before They Peak

Sustainability is no longer a niche value proposition. It has become table stakes. Market research companies tracking search volume, social sentiment, and purchase data show that interest in “solid wood furniture” and “FSC-certified” increased 74 % year-over-year in 2024-2025. Interest in “particle board” and “MDF” continues to decline. Brands that identified this shift early (such as Article and Sabai) have captured premium pricing, whereas late adopters are stuck discounting inventory made with outdated, less desirable materials.

3. Optimizing Pricing in a Transparent World

Online price comparison is instantaneous. A market research company can run conjoint analysis and price elasticity studies to determine exactly how much consumers are willing to pay for features like kiln-dried hardwood frames versus engineered wood, or for white-glove delivery versus free threshold shipping. One East Coast retailer discovered that customers valued “10-year structural warranty” 2.3 times more than “free returns,” allowing them to remove costly return policies and increase margins by 11 % without losing market share.

4. Identifying Emerging Distribution Channels

A few years ago, big-box retailers and Wayfair were the main sources of furniture shopping, but now, direct-to-consumer and newer hybrid purchasing models are taking off. Research from a leading market research company suggests that 43% of Gen Z furniture customers are now identifying brands first on TikTok Shop or Instagram Checkout and not Google. Brands ignoring these channels (or failing to test shoppable video) are leaving 15–30 % of potential revenue on the table.

5. Reducing Costly Inventory Risk

Furniture has some of the highest SKU complexity and longest lead times in retail. A single misjudged color or size assortment can tie up millions in capital. Continuous demand sensing through market research companies—combining point-of-sale data, preorder campaigns, and predictive analytics—has helped companies like Burrow and Floyd cut excess inventory by 35 % while increasing sell-through rates to over 90 %.

The Bottom Line

In an industry where trends can turn in a single viral TikTok and where carrying costs eat profits alive, guessing is no longer an option. Companies that treat market research as a core operating expense rather than a nice-to-have are the ones opening new showrooms, raising successful funding rounds, and building waitlists for new collections. In 2025 and beyond, the most beautiful furniture in the world won’t sell if the data didn’t say it would.