China Home Expo observes that the overall scale of the home furnishings industry continued to grow in 2026, yet the way consumers shop for furniture and soft furnishings is undergoing a dramatic transformation. Related data projects that the U.S. home market will reach $1.7 trillion by 2030, with online channel sales accounting for 7.2% of total home retail volume in 2026.

The home industry is currently facing significant headwinds. Cooling housing markets, rising operating costs, and shifting consumption patterns are steadily squeezing the survival space of traditional furniture retailers. Data shows that multiple U.S. furniture companies filed for bankruptcy over the past year, with furniture shipment volumes declining 6% year on year between 2024 and 2025, as the industry's traditional growth model hit a bottleneck.

Industry demand has not faded; it has simply undergone structural migration. Affected by high mortgage rates and economic uncertainty, prospective homebuyers are largely taking a wait-and-see approach, leading to a sharp decline in whole-home furniture purchases driven by property turnover. At the same time, homeowners are holding onto their properties for increasingly longer periods, making existing home renovations and home refreshes the core growth drivers of the market. Total U.S. home improvement spending in 2026 is projected to reach $522 billion, serving as a critical pillar for the industry.

From a consumption motivation perspective, home purchases fall into three main categories: essential replacement, soft furnishing upgrades, and promotional event shopping. Thirty-four percent of purchases stem from necessities such as furniture damage or life changes, while soft furnishing refreshes and event promotions each account for 28%. Holiday marketing also plays a key role in driving sales. Generational differences are pronounced: Gen Z favors consumption around holidays and moving milestones, middle-aged and older groups primarily purchase on an as-needed basis, and young urban families remain the mainstay of home consumption.

Channel divergence has become the most prominent feature of 2026 home consumption, forming a fixed pattern of "online discovery, offline conversion." Sixty-three percent of consumers gather home inspiration online, yet large-ticket, high-value furniture still relies on offline experience. Sofas and sectional sofas see offline conversion rates exceeding 60%. In contrast, lighting fixtures and small children's furniture have become mainstream online purchases.

In terms of online conversion, low-price discounts and free delivery are the core attractions, with user reviews wielding far greater influence on purchase decisions than recommendations from friends and family. Digital tools such as 3D customization and AR real-scene previews effectively alleviate consumer hesitation about placing orders, with half of users willing to pay for 3D personalization features. Although virtual tools cannot fully replace offline experience, they can effectively shorten the decision-making journey, helping brands boost online conversion rates and becoming a key direction for the current upgrade of home e-commerce.

Source: shopify