WOW STORY OF THE DAY: Flat-Pack Fortune: How IKEA Built a €44.6B Global Giant From a Village in Sweden

IKEA’s story is one of vision, simplicity, and reinvention. Founded in 1943 by 17-year-old Ingvar Kamprad in the small village of Älmhult, Sweden, IKEA started as a mail-order business selling pens, wallets, and picture frames. The name IKEA comes from Kamprad’s initials plus his family farm and village: Ingvar Kamprad Elmtaryd Agunnaryd.

The breakthrough came in the 1950s, when Kamprad noticed that removing table legs made shipping cheaper and easier. This idea birthed the flat-pack furniture model, allowing customers to transport and assemble products themselves. It was a radical innovation that transformed furniture retail, making stylish design affordable and accessible.

By the 1970s, IKEA had expanded across Europe, later reaching North America and Asia. Its iconic catalog, maze-like stores, and Swedish meatballs became cultural touchstones. More importantly, IKEA’s focus on affordability, functionality, and sustainability made it a household name worldwide.

In 2025, IKEA reported €44.6B in retail sales, supported by 66 new store openings and strong e-commerce growth. The company employs 222,000 co-workers globally and continues to invest in renewable materials, pledging to use only recycled or sustainable inputs by 2030. Despite slight declines from previous years, IKEA’s strategy of lowering prices and expanding accessibility has kept volumes and visitation rising.

Notable Updates & Major Takeaways

Revenue Performance: IKEA retail sales reached €44.6B in FY25, with increased volumes despite price reductions.

Global Expansion: Added 66 new sales locations in FY25, strengthening presence in Asia and emerging markets.

Workforce Scale: Employs 222,000 co-workers worldwide, reflecting its massive global footprint.

Innovation Legacy: Flat-pack furniture remains IKEA’s defining innovation, revolutionizing affordability and logistics.

Sustainability Goals: Committed to using only renewable or recycled materials by 2030, aligning with eco-conscious consumers.

Future Outlook: IKEA is investing in digital retail, AR/VR shopping tools, and expanding into India and Southeast Asia.

Closing Note

From a teenager’s mail-order hustle to a €44.6B global empire, IKEA proves that innovation doesn’t have to be complex — sometimes it’s as simple as unscrewing a table leg. By blending affordability, design, and sustainability, IKEA has not just sold furniture, but reshaped how the world lives.

Sources: IKEA Global, Statista, AppsRhino