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wood furniture imports from tropical countries were hit by a said they were increasingly shortening supply chains by
big decline in demand for outdoor furniture last year, a sector becoming more local (at country or regional level). Within
where tropical furniture still dominates. Europe, Portugal, Italy, and Spain were identified as the main
The reemergence of China as a major force in European beneficiaries of this perspective.

wood furniture supply in 2023 also contributed to the sharp The relocation is driven by various reasons, including
decline in tropical countries share of European imports. shortening time to market. However, business sustainability,
Imports from all tropical countries supplying wood furniture liquidity and security of supply have emerged as key issues
to the EU27+UK declined very sharply last year including that are intensified by international events.
Vietnam (-28% to 148,900 tonnes), India (-20% to 73,400 The implementation of the EU Deforestation Regulation
tonnes), Indonesia (-23% to 73,400 tonnes), Malaysia (-15% (EUDR), due from 31 December this year, which imposes
to 72,800 tonnes), Brazil (-15% to 48,300 tonnes), Thailand strict wood traceability requirements, is another factor that
(-19% to 5,400 tonnes) and Singapore (-74% to 2,900 tonnes). might intensify the trend towards shortening supply chains
There was a big fall in tropical wood furniture imports in the future.

into the UK, the largest European market, in 2023, down 22 CSIL’s analysis of the structure of the European furniture
percent to 138,700 tonnes. Large declines were also recorded industry highlights that the sector is still predominantly made
by France (-22% to 72,000 tonnes), Germany (-33% to 52,600 up of small and medium-sized enterprises (SMEs).
tonnes), Netherlands (-24% to 44,300 tonnes), Belgium (-34% The sector employs a significant number of people, with
to 23,200 tonnes), Ireland (-23% to 10,700 tonnes), Denmark more than one million workers in over 135,000 manufacturing
(-26% to 10,500 tonnes), Italy (-26% to 9,100 tonnes), and companies. While the industry remains SME-based, both
Poland (-27% to 8,900 tonnes). manufacturing and retailing are becoming increasingly

Of all large European markets, only in Spain did imports concentrated.
hold up well in 2023, rising three percent to 28,100 tonnes. According to CSIL, the top 100 European companies
generate more than 30 percent of the total value of furniture
CSIL forecast gradual recovery in European furniture produced in Europe, an increasing share compared to 10
market demand years ago.
According to CSIL, the Italy-based furniture industry research On the distribution side, the top 15 EU furniture retailers
organisation in their latest quarterly issue of World Furniture also account for almost 30 percent of the market.
Online, this year prospects are slowly improving for the CSIL comment that over the past few years, from 2019 to
European wood furniture sector. 2023, there have been many strategic mergers and acquisitions

The major challenges that have recently weighed heavily (M&A) in the European furniture manufacturing sector.
on the European furniture industry, such as price increases According to CSIL “this has highlighted the dynamic and
and supply chain disruptions, appear to be easing. evolving nature of the industry, with companies strategically
Furniture demand is expected to gradually improve in the positioning themselves to strengthen their market position and
second quarter of 2024 and to recover in 2025. leverage synergies. Furthermore, the M&A landscape within
Based on interviews with European furniture companies, the European furniture industry shows a predominant focus
CSIL also identify key recent changes in the structure and on local transactions with the vast majority of total deals

strategies of the sector. being acquired by companies within the region”. FDM
Most furniture manufacturers surveyed by CSIL in 2023 ENQUIRY NO. 3101