THEMediobanca Studies Area presented the postponement 2023 on 'furniture for the home, office and community spaces. They come analyzed the economic-financial data for the three-year period 2019-2021, of 286 largest companies national manufacturing companies with a 2021 turnover exceeding 10 million euros. The study also explores the trend of the sector at an international level and highlights ESG (Environment, Social and Governance) issues.
Furniture: production growing in 2023 but not at the levels of other years
Il furniture sector continues to experience steady growth. In 2022 the world turnover is increased 12% reaching approx 530 billion euros, compared to the 470 billion touched in 2021 (+14%, on the other hand, compared to 2020). However, due to economic uncertainty, it is estimated that the growth in 2023 will be more contained, equal to 5%. Despite this, the projections in the long term they indicate a production that could reach 690 billion euros in 2027.
La China, albeit showing signs of slowing down, still holds the industry leadership, covering 37,1% of world production, followed by United States (13,6%) and Italy (4,5%) which, with a market share of 4,5%, surpasses Germany (4,3%).
Furniture: Italy second exporter in Europe, fourth in the world
LItaly is the second exporter of furniture inEuropean area after Poland and fourth worldwide, surpassed only by Poland, Vietnam and China (which dominates the ranking with 34,1% of total exports). L'EU-27 is the main export market for Italy, constituting 45,9% of its furniture exports. The rest of Europe follows with 16,4%. Despite the preference for proximity markets, Italy does not neglect the opportunities offered by foreign markets such as North America and Asia. The success of Italian companies on the international market is attributable to the quality of the sectoral offer and to the specialization in the high-end sector, recognized and appreciated on a global level. Furthermore, new generations of consumers and emerging markets require high quality sustainable products, offering growth opportunities for Italian companies in the medium and long term.
Furniture: the trend of the sector in Italy
In 2021, the 286 major companies furniture manufacturers in Italy have reached a aggregate turnover of 14 billion euros, of which 55,2% comes from exports. The greatest concentration of companies is found in the North East (149 units), followed by the North West (63 companies). The Italian furniture sector is characterized by its strength district connotation, with 226 companies representing 84,8% of the total turnover. THE furnishings in kit form, components and furnishing accessories are the most representative specialization by turnover, with 3,2 billion euros. Followed by i living room products, bedrooms and other environments (2,6 billion euros), armchairs and sofas, kitchens (both with 2,5 billion euros each), office furniture and chairs with tables (just under one billion). The turnover of the producers of afurnishing spaces for the community (600 million), bathroom furniture (500 million) and products foroutdoor (300 million). The high-end sector recorded sales of 3,7 billion euros while the largest proceeds belong to companies operating in the medium-low, economic or mass market range (10,3 billion euros). In 2021, with a growth of 23,8%, has recovered the decline in sales of 2020 (-5,2%) due to the pandemic crisis. Well be it domestic market (+19,8%) is that beyond the border (+27,3%). There average annual growth for the three-year period it was a total of 8,3%.
The sustainability of the furniture sector
The Italian furniture sector is committing itself to the sustainability, using innovative materials and promoting a longer life of the furniture. However, the businesses also face other challenges: I'aging workforce combined with the difficulties in identifying new personnel (especially among the younger ones), are factors that could lead to a shortage of skilled professionals and craftsmen and then the dependence on foreign supplies andincrease in raw material costs. According to the report, one is needed appropriate forestry policy to guarantee Italy the supply of wood and reduce environmental impacts. Finally, great importance to digitization which has opened up online sales opportunities, which are constantly increasing, allowing for the expansion of foreign markets. In 2022 the value of furniture purchases through e-commerce in Italy it has exceeded 3,5 billion euros. This is a significant increase considering that in 2017 the value was just under one billion.
Opportunities and challenges for the furniture sector
Despite the recovery after the decline in sales in 2020 caused by the pandemic, the Italian furniture sector still faces several challenges. With the uncertainties due to the geopolitical context and the inflationary push, 57% of companies expect a increase in turnover and exports even in 2023, although more contained than in the previous two years, 32% estimate a drop, while 11% expect to remain at 2022 levels. overcome the problems such as uncertain economic growth, rising raw material costs and supply chain risks, 58,3% of companies have planned a increase or diversification of suppliers, with a particular focus on national or local proximity. Also, companies are focusing their efforts on the human capital, considering it the central element for future development. The ESG topics are gaining more and more importance in the sector, with 68% of companies considering them as a trend destined to last over time and as a source of competitive advantage. In particular, actions aimed at energy efficiency, the use of recycled materials and the circular management of waste are among the main environmental priorities.
