THE GLOBAL FURNITURE MARKET
“European Hardwood Conference”
Versailles, Friday 4 November 2005
Teresa Gargiulo, Federlegno-Arredo
Centre for wood and furniture industry studies
Versailles, 04/11/2005
2
THE GLOBAL FURNITURE MARKET
A HUGE GLOBAL BUSINESS
Fig. 1. WORLD FURNITURE PRODUCTION AND CONSUMPTION BY REGIONS.
Per cent, 2004.
consumption
production
36,9%
EU15
37,3%
35,9%
NAFTA
27,7%
27,2%
OTHERS
0%
35,0%
5%
10%
15%
20%
25%
30%
35%
40%
Furniture is the largest low-tech sector worldwide with an estimated total production of
about 220 billions of euros.
Europe is the largest furniture producer, but Asia is performing
increasingly better.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
THE FAST OPENING OF INTERNATIONAL MARKET
Fig. 2. WORLD FURNITURE IMPORT.
Million dollars, 1985-2000.
68.342
70.000
60.000
49.229
50.000
30.488
40.000
30.000
20.000
12.760
10.000
0
1985
1990
1995
2000
In the last ten years furniture trade grew faster than others traditional products trade.
Last year the total global furniture trade worth was 70 billion euros.
The opening rate (Import/Consumption) of furniture international market reached
more than 30%.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
DEVELOPING REGIONS ARE LEADING THE MARKET GROWTH
Tab. 1. WORLD FURNITURE IMPORT BY REGION.
Billion euro, 2004 .
Regions/Countries
EU 15
Value
Growth rate
in 2004 (%)
29,4
5,5%
2,5
19,5%
NAFTA
25,6
3,9%
Russia
1,3
22,0%
OTHERS EUROPE
3,2
7,6%
China
0,6
15,1%
Japan
3,1
-0,1%
OTHERS ASIA AND PACIFIC
2,6
15,5%
MIDDLE EAST
1,3
9,4%
LATIN AMERICA
0,2
45,1%
AFRICA
0,4
28,6%
70,2
6,1%
EU New members
WORLD
EU15 is the most important market, followed by NAFTA; together they cover the 80%
of total world import…
…but Asia, Russia and EU10 are leading the market growth.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
GLOBAL FURNITURE MARKET SUPPLIERS
Fig. 3. WORLD FURNITURE IMPORT BY SUPPLIERS.
Billion euro, 2000-2004.
20,0
80,0
70,2
64,0
62,5
66,8
70,0
66,1
14,4
15,0
WORLD
60,0
50,0
11,5
12,2
10,0
CHINA
7,9
7,3
ITALY
9,1
7,7
40,0
30,0
7,3
7,3
7,3
5,0
20,0
5,4
GERMANY
5,5
5,5
5,6
6,1
2001
2002
2003
2004
0,0
10,0
0,0
2000
China, Italy, Germ any
WORLD
The main three players are China, Italy and Germany.
In the last five years China doubled its market share.
Traditional main playerslike, Italy and Germany show relatively low trends.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
DEVELOPING COUNTRIES ARE BECOMING WORLDWIDE
MAIN PRODUCERS
Tab. 2. WORLD FURNITURE IMPORT BY SUPPLIERS.
Billion euro, 2004.
Suppliers
1°
2°
3°
4°
5°
6°
7°
8°
9°
10°
Value
%
China
Italy
Germany
Canada
Mexico
Poland
Usa
France
Indonesia
Denmark
Others
14,4
7,3
6,1
4,1
4,0
3,5
2,9
1,8
1,6
1,6
22,7
20,5%
10,4%
8,8%
5,9%
5,7%
4,9%
4,1%
2,6%
2,3%
2,3%
32,4%
WORLD IMPORT
70,2
100,0%
Growth rate 2000-2004
62,3%
-11,3%
1,9%
-31,7%
-4,6%
33,2%
-45,3%
-18,8%
-19,3%
-6,9%
-0,5%
China and Poland are the more dynamic new players.
Labour cost, design and forest resources are the key-leading factor in
international furniture production specialization.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
WORLD FURNITURE LEADERSHIP BY REGIONS
Tab. 3. LEADER’S FURNITURE IMPORT SHARES BY REGIONS.
Shares (%), 2004.
Regions/Countries
Leaders
Share
EU 15
Italy
14,1%
EU New members
Germany
24,7%
NAFTA (Usa, Canada, Messico)
China
34,2%
Russia
Italy
30,8%
OTHERS EUROPE
Germany
23,3%
China
Germany
33,7%
Japan
China
37,7%
OTHERS ASIA AND PACIFIC
China
34,8%
MIDDLE EAST
Italy
20,4%
LATIN AMERICA
Usa
22,9%
AFRICA
Italy
20,8%
WORLD
China
20,5%
China is the leader supplier in NAFTA and others Asian countries.
Italy is the leader supplier in EU25, Middle-East and Africa.
Germany is the leader supplier in EU10, in Other Europe countries and in China.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
NEW PLAYERS IN EUROPE (1)
Tab. 4. EU15’S MAIN FURNITURE SUPPLIERS.
Billion euro, 2004.
Suppliers
Value
%
1° Italy
4,2
14,1%
2° Germany
3,8
12,9%
3° Poland
2,6
8,9%
4° China
2,6
8,9%
5° France
1,2
4,1%
6° Denmark
1,1
3,6%
7° Spain
1,0
3,3%
8° Czech Republic
0,9
2,9%
9° Indonesia
0,8
2,8%
10° Netherlands
0,8
2,8%
Others
10
35,7%
29,4
100,0%
EU 15 IMPORT
China and Poland are increasingly gathering quotas on European import.
Western Europe Countries play a major role in European furniture Industry.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
NEW PLAYERS IN EUROPE (2)
Fig. 4. EXTRA-UE15 FURNITURE SUPPLIERS OF EUROPEAN IMPORT.
Per cent, 2004.
Romania
Indonesia 5,0%
5,8%
Slovenia Vietnam
3,6%
3,2%
South Africa
3,0%
Switzerland
2,9%
Turkey
2,8%
Czech Republic
6,1%
Others
30,0%
China
18,7%
Poland
18,8%
If we look at import data without considering EU15 members trade, China and Poland
have similar quotas of about 19 per cent.
Main followers are Czech Republic, Indonesia and Romania.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
10
THE GLOBAL FURNITURE MARKET
MAIN EUROPEAN PLAYERS
Tab. 5. LEADER’S FURNITURE IMPORT SHARES BY EU15’S COUNTRIES.
Shares (%), 2004.
Countries
Leaders
Share
1° Germany
Poland
21,1%
2° United Kingdom
Italy
20,9%
3° France
Italy
22,5%
4° Belgium
Germany
23,5%
5° Netherlands
Germany
28,1%
6° Austria
Germany
48,1%
7° Spain
France
17,6%
8° Sweden
Denmark
15,1%
9° Italy
Germany
13,5%
10° Denmark
Sweden
17,2%
11° Portugal
Spain
37,4%
12° Ireland
united Kingdom
41,1%
13° Greece
Italy
34,7%
14° Finland
Sweden
31,3%
15° Luxembourg
Germany
59,3%
Italy
14,1%
EU15
Poland is the leader supplier in Germany.
Germany is the leader supplier in Central Europe.
Italy is the leader supplier in France, United Kingdom and Greece.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
11
THE GLOBAL FURNITURE MARKET
PRODUCTS
Fig. 5. WORLD FURNITURE IMPORT BY PRODUCTS.
Per cent, 2004
Chairs
12,9%
Office furniture
4,4%
Special furniture
1,7%
Parts
27,7%
Upholstered
12,5%
Other wood furniture
19,4%
Kitchens
3,7%
Bedroom furniture
7,2%
Others
10,6%
Parts and Upholstered furniture have the most important quotas.
Centre for wood and furniture industry studies
Versailles, 04/11/2005
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THE GLOBAL FURNITURE MARKET
LEADERS BY PRODUCTS
Tab. 6. LEADER’S FURNITURE IMPORT SHARES BY PRODUCTS.
Shares (%), 2004.
Products
Leaders
Shares
Bedroom furniture
Cina
26,6%
Kitchens
Germania
28,0%
Other wood furniture
Cina
22,8%
Upholstered
Italia
23,7%
Office furniture
Canada
16,7%
Chairs
Cina
29,9%
Special furniture
Germania
19,8%
Parts
Messico
16,2%
Others
Cina
35,7%
Tot Furniture
Cina
20,5%
Traditional players win in more specialistic products
Centre for wood and furniture industry studies
Versailles, 04/11/2005
13
THE GLOBAL FURNITURE MARKET
A NEW GLOBAL VALUE CHAIN
Traditional players aim at lowering their costs, increasing the
added value, opening new markets (i.e. to have a better access
to third country markets).
New players aim at increasing theirs weight on international
trade and to upgrading the quality of their productions.
These forces, via FDI, are defining a new global value chain in
the world furniture market.
Centre for wood and furniture industry studies
Versailles, 04/11/2005