World furniture outlook 2006/2007 – CSIL Milano

Aug 18, 2006. /Lesprom Network/. According to CSILMilano’s “World Furniture Outlook 2006/2007”, world furniture production was worth about $267 billion in 2005, based on statistics from 60 countries. With 4.7 billion inhabitants, these countries accounted for roughly 75% of the world population and virtually all the world furniture production value. These countries also accounted for $82 billion of the international furniture trade in 2005, equivalent to about 1% of the world trade in manufactures. The largest furniture producers in the developed world were the USA ($57.4 billion), Italy ($23.7 billion), Germany ($18.9 billion), Japan ($12.4 billion), Canada ($11.7 billion), the UK ($10.1 billion) and France ($9.2 billion). Together they produced around 55% of the total world value. Developed countries accounted for 70% of the world’s furniture production while emerging countries accounted for the balance. Production in China and Poland was rapidly increasing helped by investment in new plants focused on the export market. China is the world’s second largest producer after the USA, with $37.9 billion, followed by Italy. US and UK lead in furniture imports hike In the 1996-2005 period, large expansion in furniture imports were seen in the USA (from $7.3 billion to $23.8 billion) and the UK (from $1.9 billion to $6.7 billion), and smaller increases in France, Germany and Japan. The leading importers were the USA ($23.8 billion), Germany ($8.3 billion), the UK ($6.7 billion), France ($5.9 billion), and Japan ($3.7 billion) in 2005. Total world imports of furniture were worth $83.9 billion that year. China is the world’s largest furniture exporter About 54% of furniture exports come from developed countries. However, this share has decreased 22 percentage points since the mid 1990s to the advantage of some emerging countries. China’s share increased from 3% in 1995 to 17% in 2005. Other major exporting emerging countries were Poland, Malaysia, Indonesia and Mexico. The largest furniture exporters were China ($13.5 billion), Italy ($10.1 billion), Germany ($6.5 billion), Poland ($5.3 billion) and Canada ($4.4 billion) in 2005. Total world furniture exports were worth around $82 billion in 2005. Openness of furniture markets boosts trade The most important structural phenomenon of the past decade has been the increased degree of openness in furniture markets. The overall import-consumption ratio rose from 20% in 1996 to 31% in 2005. This increase was particularly important in the USA, where the furniture trade deficit reached almost $21 billion in 2005 and continued boosting world furniture trade. As a consequence of the openness in main furniture markets, international furniture trade grew faster than furniture production and international trade in other manufactures till 2000. In 2006 and 2007, the world GDP is predicted to continue growing at a fast pace and so is international trade of manufactures. World trade of furniture is expected to grow 7% to $88 billion in 2006 and 6% to $93 billion in 2007. Developed countries lead in furniture consumption Apparent consumption per capita of furniture ranges from an average of $14 per year in emerging countries to $228 per year in developed countries, for an aggregate average of $58 per year. Countries with the highest per capita furniture consumption are Norway, Canada, Austria, Switzerland, Denmark and Finland. EU-25 plus Norway, Switzerland and North America accounted for 72% of furniture consumption in 2005, although their population was only 19% of the total. Asia-Pacific, on the other hand, with 3 billion inhabitants (66% of the total) accounted for 22% of the world consumption. Apparent consumption of furniture in developed and emerging countries was worth $218.5 billion and $52.1 billion in 2005, for a global aggregate of $270.6 billion. The world’s largest furniture consumers were the USA ($78.2 billion), China ($24.9 billion), Germany ($20.5 billion), the UK ($15.5 billion) and Japan ($15.5 billion) in 2005. World furniture outlook for 2006-2007 Furniture demand is expected to grow in 2006 and 2007 in all major markets. The global outlook is positive for these years due to the continuing strong growth in the USA and the economic upturn in Asia. While moderate growth in furniture demand is expected in most countries in 2007, demand is projected to grow more than 3% in real terms in the following countries: • Ireland; • six new EU country members (Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia); • five in Central and Eastern Europe (Bulgaria, Croatia, Romania, Russia and Ukraine); • eight in Asia (China, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam); • two in South America (Argentina and Chile); and • four in Middle East and Africa (Egypt, Israel, South Africa and United Arab Emirates).