Australian Furniture Market Trends: What Online Brands Should Prepare for in 2026

The Australian Furniture Market is growing because more people are moving to big cities like Sydney, Melbourne, Brisbane, and Perth. This has increased the need for new homes and modern furniture. In 2024, the market reached about AUD 27.9 billion. Experts say it may grow to AUD 49.1 billion by 2033, growing by 5.8% each year.

Furniture includes items we use every day, such as chairs, tables, beds, sofas, and cupboards. These items help us sit, sleep, eat, and store things. Furniture makes homes comfortable, useful, and neat. It is used in every room of the house.

Today, many people live in small apartments, so they choose small and space-saving furniture. The biggest furniture retailers in Australia are also using eco-friendly materials. These changes are creating new Australian Furniture Market trends, which are explained in this blog.

Furniture Industry Australia – Easy Overview

The Furniture Industry Australia is growing steadily due to changes in how people live, work, and shop. Factors like urban growth, online shopping, lifestyle changes, and sustainability are shaping the Australian Furniture Market.

Key Market Drivers

Urbanisation and Housing Growth

One big reason the Australian Furniture Market is growing is urbanisation. This means more people are moving to big cities like Sydney, Melbourne, Brisbane, and Perth. They move to cities to find jobs and live a better life.

As more people move to cities, more houses and apartments are built. Every new home needs furniture, so the demand for furniture increases.

Today, many people live in small apartments, especially young workers and small families. Because space is limited, people choose small and multi-use furniture. Examples include foldable tables, small sofas, and beds with storage.

Even though fewer new houses are being built now, people still need furniture. Homes, rental houses, offices, and shared buildings all need furniture. Government housing projects also increase demand in the Australian Household Furniture Market.

Rising Income and Lifestyle Changes

When people earn more money, they like to spend more on their homes. Australians now want furniture that is comfortable, stylish, and strong. Because of this, more people are buying high-quality and designer furniture. This is helping the Australian Luxury Furniture Market grow.

Today, many people work from home. So, furniture like chairs, desks, and storage units is needed more than before. Furniture is not only for use now—it also shows a person’s taste and lifestyle. Social media and home makeover shows help people choose new designs.

All these changes are helping the Australian Home Furniture Market grow, especially furniture that is modern and can be customised.

Growth of Online Shopping

Buying furniture online has changed a lot. Many people like it because it is easy and there are more choices. After COVID-19, more people started buying furniture online.

Websites now show reviews, comparisons, and even let you see how furniture will look in your home. Many stores use both online and physical shops. This is called omnichannel retailing and helps customers shop easily.

Online shopping has also helped small furniture brands compete with the biggest furniture stores in Australia. It has made the furniture market bigger across the country.

Key Market Challenges

Supply Chain Problems and High Costs

A big problem for the Australian Furniture Market is getting materials from other countries. Many things used to make furniture come from far away. Shipping delays and higher fuel costs make furniture more expensive.

When materials cost more, companies either lose money or raise prices. This is hardest for small businesses and buyers. Because Australia is far from other countries, bringing furniture in takes more time and money.

Strong Competition and Price Pressure

The market is very competitive. Big companies like IKEA and Harvey Norman compete with online stores and small local shops. Because of this, prices are often lowered, and discounts are common.

Small companies find it hard to compete. Making new designs and advertising products costs a lot of money. Trends also change quickly, so companies must update their products often. This increases costs and makes business riskier.

Key Australian Furniture Market Trends

Sustainable and Eco-Friendly Furniture

Sustainability is very important in the Australian furniture market. Many people want furniture that is good for the environment.

Companies use materials like bamboo and recycled wood. They use safe paints and finishes. Some companies fix old furniture instead of throwing it away. This helps reduce waste. People trust brands that clearly explain how they care for the environment.

Multi-Functional and Space-Saving Furniture

Many people live in small homes. They need furniture that saves space. Sofa beds, foldable desks, and tables that can get bigger are popular.

This furniture fits modern life. It also helps the furniture market in Australia grow. Some furniture even has technology, like USB charging ports.

Segment Insights

Home furniture is the biggest part of the Australian furniture market. People buy more for living rooms, bedrooms, dining rooms, and home offices.

Outdoor furniture is also popular because Australians like being outside. Online stores make it easy for people to choose and change furniture the way they want.

Furniture Industry Advertising Benchmarks

The Furniture Industry Advertising Benchmarks show how furniture brands perform with online ads. They give information about things like ROAS (Return on Ad Spend), ad goals, and who the ads are aimed at on sites like Facebook and Google Ads.

Looking at these benchmarks helps businesses see what works best. It also helps them spend their ad money wisely and get better results.

The next sections explain how ads perform on different platforms, for different types of campaigns, and with different audiences. This helps furniture companies make smart choices for their advertising.

Facebook Ads ROAS for Furniture

ROAS (Return on Advertising Spend) shows how much money furniture companies earn for every dollar spent on Facebook ads. The data comes from thousands of ad campaigns by over 5,000 companies. It also includes billions of dollars spent on ads each year, tracked using the Varos platform.

Key Highlights (April 2025)

• Median ROAS for furniture companies: 4.67
• Change from last month: Decreased by 10.27%

ROAS by Campaign Objective

Objective	Median ROAS	Month Change	Range
Sales	4.93	-0.41%	2.75 – 5.34
Engagement	1.35	-88.14%	1.28 – 13.75
Traffic	0.77	+4.85%	0.62 – 1.29

ROAS by Targeting Type

Targeting Type	Median ROAS	Month Change	Range
Lookalike	8.62	+81.89%	1.98 – 15.92
Prospecting	4.30	-15.51%	1.99 – 11.00
Retargeting	6.07	+2.86%	3.18 – 15.40

Insights

• Sales campaigns are the most reliable for ROI, with a median ROAS of 4.93.
• Lookalike audiences perform the best, showing the highest potential ROAS (8.62).
• Engagement campaigns have lower ROAS but can help increase brand visibility.
• Retargeting also delivers strong returns by targeting people who have already shown interest in your products.

Google Ads ROAS for Furniture

ROAS (Return on Advertising Spend) shows how much revenue furniture companies earn for every dollar spent on Google Ads. This data is based on thousands of campaigns from over 5,000 companies and billions of dollars of annual ad spend tracked via the Varos platform.

Key Highlights (April 2025)

• Median ROAS for furniture companies: 3.87
• Change from last month: Decreased by 23.34%

ROAS by Google Ads Channel

Channel	Median ROAS	Month Change	Range
Performance Max	3.58	-5.67%	2.11 – 4.87
Search	6.12	-23.14%	3.26 – 13.68
Shopping	3.90	-9.07%	1.42 – 7.17
Video	1.72	+14.95%	1.13 – 191.74

ROAS by Google Ads Network

Network	Median ROAS	Month Change	Range
Mixed	3.58	-5.67%	2.11 – 4.87
Search	5.69	-17.85%	3.41 – 11.38
Search (Partner)	5.45	-37.11%	2.39 – 7.80

Insights

• Search campaigns deliver the highest ROAS (6.12), making them very effective for driving sales.
• Video campaigns show a huge range in ROAS, meaning results can vary a lot depending on the content and targeting.
• Shopping campaigns provide steady performance for e-commerce and product-focused ads.
• Networks like Search and Search Partner remain key for reaching customers actively searching for furniture.

Australia Furniture Market – Regional Insights

The Australian furniture market is different in each region. People live in different homes and like different styles.

New South Wales (NSW)

People in NSW like modern and fancy furniture. Cities like Sydney want furniture that looks nice and is high-quality.

Victoria

Victoria has both old-style and modern furniture. People like furniture that saves space and is eco-friendly.

Queensland

Queensland needs outdoor furniture because the weather is warm. Many homes have patios and gardens, so strong furniture for outside is popular.

Residential Construction Impact

According to the Australian Bureau of Statistics, from March 2016 to March 2024, the value of residential building work in Australia stayed mostly steady. It ranged from about AUD 31.5 billion to AUD 37.5 billion. The highest was over AUD 36 billion in March 2020.

In 2020–21, New South Wales had:

• 46% of residential work from new detached houses
• 38% from new apartments
• 16% from home renovations

This growth in housing has increased the need for stylish, comfortable, and useful furniture. New homes and renovations both create strong demand for home furnishings, helping the Australian Household Furniture Market grow.

ABS Data for 2025

According to ABS housing and construction statistics for 2025:

• In March 2025, the value of residential building work was about AUD 24.27 billion. This is the part of all building work that was for homes.
• In June 2025, it was about AUD 24.19 billion.

These numbers show that residential building work in 2025 is still strong. Both quarters are slightly above AUD 24 billion, which is near the higher range seen from 2016 to 2024.

What This Means:

In 2025, residential construction continues at a similar scale to recent years, following the earlier trend between AUD 31.5 billion to AUD 37.5 billion per year (based on historical quarters).

Australia Furniture Market – Regional CAGR (2026–2035)

The growth of the Australian furniture market is different in each region. Factors like population growth, city development, lifestyle, and climate affect this growth.

Some states, like Queensland and New South Wales, are growing faster because cities are getting bigger and more people want indoor and outdoor furniture. Other regions, like Victoria and smaller states, are growing at a slower, steady pace.

The table below shows the estimated growth rate (CAGR) for each region from 2026 to 2035. It highlights where furniture demand is expected to rise the most.

Region	Estimated CAGR (2026–2035)	Why (Simple Explanation)
Australian Capital Territory	4.3%	Smaller populations still have steady demand, and government spending helps moderate growth.
Western Australia	4.1%	Strong local manufacturing and growth in inland areas support furniture sales.
Victoria	3.6%	Some markets are stable, with a mix of traditional and modern furniture. Growth comes from more households and renovations.
New South Wales	4.2%	NSW has the largest population, lots of new houses, and many renovations, which increases furniture demand.
Queensland	6.3%	Queensland is growing faster. More people, coastal living, and high demand for indoor and outdoor furniture drive this growth.
Others (South Australia, Tasmania, Northern Territory)	3.2% (approx)	Smaller states grow steadily but more slowly than the bigger markets.

Top Furniture Business Trends to Focus On in 2026

1. Sustainability Is Important

People want furniture that is good for the environment. This means using recycled wood, metal, and fabrics. Eco-friendly furniture is expected by many buyers.

2. Online Shopping and Digital Tools

More people are shopping online. They like seeing furniture in their room with AR tools. They also want to pick colours and buy easily online.

3. Multifunctional & Modular Furniture

Homes are getting smaller. Furniture that can do more than one job, like sofas that turn into beds, is popular. Furniture that can be moved and changed is also liked.

4. Smart and Tech Furniture

Furniture with technology is growing in demand. This includes wireless charging, hidden lights, or smart features. It is useful and modern.

5. Natural and Warm Designs

People like furniture made of wood and soft materials. Curved sofas, timber pieces, and earthy colours make homes feel cozy.

6. Personalisation and Customisation

Customers want furniture that shows their style. Choosing fabrics, colours, and layouts makes furniture personal and special.

7. Craftsmanship and Local Furniture

Handmade and local furniture is popular. People like unique, well-made pieces that show skill and quality.

8. Comfort and Wellness

Comfortable furniture is important. Ergonomic chairs, soft sofas, and cosy beds are needed for work and relaxation.

9. Social Media Shopping

Instagram, Pinterest, and TikTok help people see and buy furniture. Pictures and videos make it easy to shop online.

10. Circular Economy and Long-Lasting Furniture

Furniture that can be repaired, reused, or recycled is popular. Durable furniture helps the environment and builds trust with buyers.

Conclusion

The Australian furniture market is changing quickly. More people are shopping online and looking for furniture that is stylish, eco-friendly, and saves space. Online brands need to prepare for these trends in 2026.

They should focus on digital marketing, flexible products, and environmentally friendly designs. Knowing what people like in different regions and how they shop will help brands stay ahead in this competitive market.

Reach out to Aus Asia Online to get the latest insights and strategies to grow your furniture business in Australia and beyond.