EUROPEAN UNION FURNITURE OUTLOOK W0102 R3138 Authors Cecilia Pisa Stefania Pelizzari Donatella Cheri Editorial closing date October 2015 All queries pisa@csilmilano.com

CSIL Milano scrl 15 corso Monforte 20122 Milano Italy tel. +39 02 796630 fax +39 02 780703 csil@csilmilano.com – www.csilmilano.com

FURNITURE

UPHOLSTERED MATTRESSES

CONTRACT & LUXURY

OFFICE & WORKSPACE

KITCHEN & BATHROOM

ECOBUILDING & WINDOWS

DESIGN LAB & WORKSHOPS

MAJOR APPLIANCES

LIGHTING FIXTURES

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Introduction to the Country Furniture Outlook Series

The Country Furniture Outlook Series of reports (issued by CSIL since the 1990’s) covers at present 70 countries on which CSIL concentrates its efforts of data gathering, research and analysis. Individual country reports are issued once a year. In addition, a global report on the World Furniture Industry (World Furniture Outlook) is issued twice a year, in June and November. The 70 countries covered by CSIL Series are the following: Algeria Cyprus Ireland New Zealand South Africa Argentina Czech Republic Israel Norway South Korea Australia Denmark Italy Oman Spain Austria Egypt Japan Philippines Sweden Bahrain Estonia Kazakhstan Poland Switzerland Belgium Finland Kuwait Portugal Taiwan Bosnia Herzegovina France Latvia Qatar Thailand Brazil Germany Lebanon Romania Turkey Bulgaria Greece Lithuania Russia Ukraine Canada Hong Kong Malaysia Saudi Arabia United Arab Emirates Chile Hungary Malta Serbia United Kingdom China Iceland Mexico Singapore United States Colombia India Morocco Slovakia Venezuela Croatia Indonesia Netherlands Slovenia Vietnam Each Country Furniture Outlook Report is structured as follows: An executive summary (see The Key Facts of the Furniture Sector) provides the furniture sector overview, based on CSIL processing of statistics and company data from official sources, both national and international, as well as sector information and field information collected through interviews with companies and sector experts. CSIL then provides an independent assessment of the sector performance and prospects for the coming years. Furniture sector performance is illustrated through updated furniture statistics and through easy to understand tables, graphs and illustrated maps. Information covers all the main variables necessary to analyze the sector, from the supply side (see Productive Factors, Furniture Production) to the market side (see Demand Determinants, Furniture Consumption), also considering the international trading activity (see Furniture Imports and Furniture Exports) Future sector prospects and CSIL’s assessment of market potential are also provided (see Furniture Market Potential) and Cross-country comparison is also shown in order to enrich the analysis (see Country Rankings). Information on actors operating in the country are provided both for manufacturers and retailers (Leading Furniture Companies ) and for other stakeholders (see Sector fairs, Press and Institutional Bodies). Background country information is also provided through summarized detailed statistics (see Basic Data) as well as the country’s attractiveness in terms of political stability and economic competitiveness (see Business Climate).

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EUROPEAN FURNITURE OUTLOOK

© Copyright CSIL This report is exclusively for consultation on the part of the purchaser. It may not be reproduced in whole or in part by any means whatsoever without the prior written permission of CSIL

Contents THE EUROPEAN FURNITURE SECTOR 1 

The role of Europe in the global furniture context 1 Figure 0. Europe and the rest of the world. Furniture production, consumption, exports, imports, 2014. % values ........................................ 1 Figure 1. Europe and the rest of the world. Furniture production, 2009-2014. Eur billion and % ..................................................................... 2 Figure 2. Furniture production in the main geographical areas. Growth rates based on values, 2009-2014. Index 2009=100 ....................... 2 Figure 3. Europe and the rest of the world. Furniture consumption, 2009-2014. Eur billion and %.................................................................. 3 Figure 4. Furniture European exports by destination, 2009 and 2014. % ......................................................................................................... 4 Figure 5. Europe. Destination of furniture exports, 2014................................................................................................................................... 4 Table 1. Europe. Furniture exports to extra-EU countries, 2009 and 2014. Eur million, percentage shares and growth rates ....................... 5 Figure 6. Europe. Origin of furniture imports, 2014 ........................................................................................................................................... 5 Table 2. Europe. Furniture imports from extra-EU suppliers, 2009 and 2014. Eur million, percentage shares and growth rates ................... 5 

The integration process within Europe 6 Figure 7. Percentage of international furniture trade carried out within each economic region. ....................................................................... 6 Figure 8 Europe. Furniture exports by main area of destination, 2009-2014. % and Eur Million ...................................................................... 7 Figure 9  Europe. Furniture imports by main area of origin, 2009-2014. % and Eur Million .......................................................................... 7 Figure 10  Western Europe (EU17). Furniture exports by main area of destination, 2014. % ......................................................................... 7 Figure 11  Eastern Europe (EU13). Furniture exports by main area of destination, 2014. % .......................................................................... 8 Figure 12. Europe. Intra-EU trade* in furniture parts, 2009-2014. Eur million, percentage shares and growth rates ...................................... 8 

Traditional and growing manufacturing countries within the EU and the integration of productive systems 9 Figure 13. Europe. Importance and performance of furniture production in the economy in each country (concentration index), 2014 ......... 9 Figure 14. Europe. Total furniture production, 2009-2014. Eur million and % ................................................................................................ 10 Figure 15. Europe. Total furniture production by area, 2009-2014. Values and performance. Eur million and index (2009=100) ................. 10 Figure 16. Europe. Furniture production by country, 2009 and 2014. Eur million ........................................................................................... 11 Figure 17. Europe. Furniture production by country, 2014. % ........................................................................................................................ 11 Figure 18. Europe. Furniture national production % share on consumption by country, 2014. ...................................................................... 12 Figure 19. Europe. Gross Value added in the furniture sector by country, 2015. Eur million ......................................................................... 12 Figure 20. Europe. Apparent labour productivity. Gross Value added per person employed in the furniture sector by country, 2009 and

2015. Eur thousand ........................................................................................................................................................................ 13 Figure 21. Europe. Furniture. Number of enterprises, persons employed, gross value added, 2009-2015. Index (2009=100) ..................... 14 Table 3. Europe. Enterprises and persons employed by country, 2015 ......................................................................................................... 14 

Factors affecting competitiveness of EU furniture producers 16 Labour cost and skilled labour availability 16 

Figure 22. Europe. % Share of personnel costs on furniture production by country, 2009 and 2013............................................................. 17 Figure 23. Europe. Average personnel costs (personnel costs per employee) by country, 2009 and 2013. Thousand Eur .......................... 17 

Availability of raw materials and components 18 Figure 24. Europe, Share of materials used in furniture production, (by value). % ........................................................................................ 18 Figure 25. Value chain of production in the furniture industry ......................................................................................................................... 19 

Investment in technology machinery 20 Table 4. Europe. Gross investments in tangible goods, in furniture production, 2012. ................................................................................... 21 

Research and Design 21 Figure 26. R&D personnel in furniture manufacturing (Head Count), 2011. % on total employees ................................................................ 22 Figure 27. Business enterprise R&D expenditure (BERD) in furniture manufacturing, 2012. Eur per inhabitant. .......................................... 22 Figure 28. Furniture manufacturing. % Share of Innovative enterprises, by country, 2012. ........................................................................... 23 Figure 29. Furniture manufacturing. Innovative enterprises by type of innovation by country, 2012. %......................................................... 24 

Policy issues 24 Figure 30. Per capita Registered Community designs (RCD) in Furnishing. Per million inhabitants, in the period 2009-2014 ..................... 25 

The competitive system in Europe 26 The TOP 100 major European manufacturers. 26 

Table 5. The Top 100 furniture manufacturers. Ranking by total turnover, last available year ....................................................................... 29 The European furniture market development 32 

Figure 31. Europe. Total furniture consumption, 2009-2014. Eur million and %............................................................................................. 32 

EUROPEAN FURNITURE OUTLOOK

© Copyright CSIL This report is exclusively for consultation on the part of the purchaser. It may not be reproduced in whole or in part by any means whatsoever without the prior written permission of CSIL

Figure 32. Europe. Total furniture consumption by area, 2009-2014. Values and performance. Eur million and index (2009=100) ............. 33 Table 6. Per capita furniture consumption by country. Comparison with Europe. 2009 and 2014. European average=100 ......................... 34 Figure 33. Europe. Furniture consumption by country, 2014. % ..................................................................................................................... 35 Figure 34. Europe. Furniture consumption by country, 2009 and 2014. Eur million ....................................................................................... 35 

Market sources: national production, EU market integration and import flows 36 Figure 35. Europe. Furniture market, 2004, 2009 and 2014. Break down by geographical area of origin. % ................................................ 37 Table 7. Europe. Furniture consumption, breakdown by national production, intra-EU imports and extra-EU imports, 2014. ....................... 37 Figure 36. Europe. Furniture imports from Eastern Europe, by country, 2009 and 2014. Eur million ............................................................ 39 Figure 37. Europe. Furniture imports from Asia and Pacific, by country, 2009 and 2014. Eur million ............................................................ 40 

Trade balance 40 Figure 38. Europe. Furniture trade balance*, 2009-2014. Eur million ............................................................................................................. 41 Figure 39. Europe. Furniture trade balance, by country, 2014 ........................................................................................................................ 41 

The import penetration 41 Figure 40. Europe. Furniture imports, 2009-2014. Eur million and index (2009=100) .................................................................................... 42 Figure 41. Europe. Furniture imports, by country 2009 and 2014. Eur million ................................................................................................ 42 Figure 42. Europe. Furniture consumption and furniture imports countries. Index, 2009=100 ....................................................................... 43 

The export orientation 43 Figure 43. Europe. Furniture exports, 2009-2014. Eur million and index (2009=100) .................................................................................... 44 Figure 44. Europe. Furniture exports by destination area, 2009 and 2014. %................................................................................................ 44 Figure 45. Europe. Furniture exports, by country 2009 and 2014. Eur million ................................................................................................ 45 Figure 46. Europe. Furniture exports/production ratio, by country 2009 and 2014. % ................................................................................... 45 Figure 47. Europe. Extra-EU Furniture exports, by country, 2009 and 2014. Eur million ............................................................................... 46 

Trends in furniture sub-segments and specialization 46 Figure 48. Europe. Furniture production by segment, 2009-2014. % ............................................................................................................. 47 Figure 49. Western and Eastern Europe. Furniture production by segment, 2009-2014. % .......................................................................... 47 Figure 50. Europe. Development of furniture production by segment, 2009-2014. Eur Million and index (2009=100) .................................. 48 Figure 51. Furniture consumption by geographical region, 2016. Forecasts of yearly changes in real terms ................................................ 50 Figure 52. Europe. Furniture consumption forecasts, 2016. Yearly changes in real terms ............................................................................ 51 

SWOT Analysis of the European furniture sector 51  COUNTRIES

Austria 53 Belgium 66 Bulgaria 79 Croatia 92 Cyprus 105 Czech Republic 117 Denmark 130 Estonia 143 Finland 155 France 168 Germany 181 Greece 194 Hungary 207 Ireland 220 Italy 233

Latvia 246 Lithuania 258 Malta 270 Netherlands 282 Norway 295 Poland 308 Portugal 321 Romania 334 Slovakia 347 Slovenia 360 Spain 372 Sweden 385 Switzerland 398 United Kingdom 410

Methodological Notes 423 List of Furniture Companies 424