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MARKET OVERVIEW

1.1 Definition and scope of study

The furniture market comprises all the activities related to furniture; from the suppliers of raw materials used in the production, to the manufacturers of the furniture, to the distributors of the final product. However, this study will focus only on the manufacturers and distributors of furniture products, given how there is an endless choice of raw materials to be used in furniture products.

The global furniture market was worth nearly $607 billion in 2019 and is projected to grow strongly in the coming years. Embracing all types of consumers and offering a very wide range of products, the furniture market nevertheless remains primarily a renewal market, i.e. a market in which replacement purchases are more important than purchases of initial equipment. Because of the longer life of furniture, the brands rely on three factors to increase their sales: fashion effects, the construction of new housing and the mobility of the population.

In Spain, the furniture market is in good shape and is experiencing a solid growth, driven primarily by the bath and kitchen segments. However, in a market historically controlled by players selling through physical points of sale, traditional retailers are increasingly faced with the rise of e-commerce and must therefore adapt to the new market realities [Aidimme].

While the Covid-19 pandemic resulted in a lower average spending (in terms of budget) by Spanish families on furniture, the market experienced an unexpected boost following the lifting of lockdown restrictions, with people taking the opportunity to renew their homes with newer and more comfortable furniture.

There are generally several types of furniture:

  • Living-room furniture
  • Kitchen furniture
  • Seats (sofas, armchairs and benches)
  • Bedding
  • Bathroom furniture
  • Garden furniture
  • Office/commercial furniture

Moreover, the two segments of the market that are talked about in this study (manufacturing and distribution) can be broken-down into sub-segments.

Manufacturing:

  • Manufacturers of office and shop furniture
  • Manufacturers of kitchen furniture
  • Manufacturers of other types of furniture

Distribution:

  • Retailers of furniture products
  • Wholesalers of furniture products

In terms of companies, Ikea is the main player in the distribution sector, holding over a quarter of the market share. Conforama also holds a significant market share, although much smaller than that of Ikea. Moreover it is important to note that the furniture market in Spain (both in terms of manufacturing and distribution) is not reliant on big national chains, but more on smaller specialised regional retailers, hence why the market is fairly fragmented.

1.2 A booming world market

According to data from Global Market Insights, the global furniture market was estimated to be worth more than $*** billion in **** and is expected to grow by *% annually until ****. It is mainly driven by demand from the United States and Asia Pacific, which are the largest markets but also the most dynamic ...

1.3 A positive Spanish market

In Spain, the activity of manufacturing furniture is recorded under the code CNAE ***. In ****, the total turnover of companies operating under this code in Spain was of *.** billion, a *.*% increase from ****, and **.*% from **** - a very promising growth [***].

Turnover of companies operating under the code CNAE *** - "Furniture manufacture" Spain, ****-****, ...

1.4 Imports and exports

For this section we use UN Comtrade to obtain the trade balances for Spain with the world for the category ** - "Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings; illuminated signs, illuminated name-plates and the like; prefabricated buildings".

With just over *.* billion US$ worth of ...

1.5 The impact of Covid-19

Just like most other sectors in the economy, the furniture market was also negatively impacted by the Covid-** pandemic. For instance, the average consumer spending on household furniture decreased by **% between **** and ****, going from €*** to €*** (***) [***].

However, it is not all bad news for the furniture market. In fact, the sector experienced ...

DEMAND ANALYSIS

2.1 Household furniture leading the way

There are three main categories of furniture that compose the whole market in Spain:

Household furniture (***) Kitchen furniture Office furniture Other furniture (***)

Of these, household furniture is the most important, representing **% of the total retail sales of furniture [***].

Breakdown of furniture retail sales by category of furniture Spain, ****, in % Source: ****

Despite ...

2.2 A generally increasing consumption of furniture

Household furniture is the fifth most popular sector for consumers in Spain (***).

Percentage consumption by sector (***) Spain, ****, in % of people surveyed Source: ****

Furniture consumption in Spain has been following a positive trend in recent years. While general consumption in Spain decreased in **** due to the Covid-** pandemic, household furniture consumption increased ...

2.3 A relatively big budget for furniture

In ****, household and kitchen furniture were the third and fourth categories (***) where consumers spent the the largest sums of money. In fact, the only two categories where Spanish spent more money in **** were home renovations and travel/tourism. In ****, the average spending on household furniture by the Spanish was of €*** and ...

MARKET STRUCTURE

3.1 A fairly fragmented market

The furniture market in Spain can be divided into * different categories:

Suppliers: Fittings, Sawn Timber, Boards, Paints and Varnishes and Glues and Adhesives. Manufacturers: Bathroom, Classic, Kitchen, Design, Fibre, Modern, Office, Rustic and Upholstered. Distributors: Chain Stores, Franchises, Department Stores, Group Stores and Independent Stores.

Distributors

In terms of retail sales, ...

3.2 A performance that varies between regions

Of the nearly €*.* billion of turnover generated by the companies in the furniture market in Spain in ****, it is the autonomous community of Valencia that contributes the biggest amount (***), followed by Catalonia, which accounts for **.*% of the total turnover [***]. 

Total turnover of companies operating in the furniture sector by autonomous community Spain, ...

3.3 A market that mainly relies on physical distribution

It is expected that in a market such as the furniture one, most of the sales of products occur in physical retailers, given how people like to test/touch/see the furniture before they buy it. In fact, of the €*.** billion of furniture sold by retailers in Spain in ****, **.*% came from ...

3.4 The growth of online sales

However, this trend is changing and the number of furniture sales done online has been increasing. Just from **** to ****, the amount of online furniture sales increased from €*** million to €*** million - a **% increase [***].

Total online furniture sales Spain, ****-****, in millions of euros Source: ****

Inevitably, this growth in terms of online ...

ANALYSIS OF THE OFFER

4.1 A wide range of products

The furniture market comprises of a wide range of products; from large furniture products (***).

Using the catalogue of the biggest furniture retailer in Spain, Ikea, we can get a fair representation of what types of products are available for consumers.

Source: ****

4.2 The increasing prices

Prices in the furniture market have been following an upwards trend since the beginning of the century, despite the growth slowing down since ****. Using the Consumer Price Index (***) for household furniture, we see that furniture is getting progressively more expensive for consumers [***].

Consumer Price Index for household furniture Spain, ****-****, Base ...

REGULATION

5.1 Regulations

There are * important aspects that govern the sale and distribution of furniture products:

Labelling Warranties

Labelling

All furniture products put up for sale for consumers must [***]:

Incorporate, bear or permit, in a true and objective manner, effective, truthful and sufficient information about their essential characteristics. Leave no doubt as to the ...

POSITIONING OF THE PLAYERS

6.1 Segmentation

  • Ikea
  • Conforama
  • Signify Iberia
  • Yudigar
  • Grupo Alvic
  • Kettal
  • Martinez Otero
  • Glicerio Chaves

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Method

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Analysts 1 sector analyzed
in 40 pages
Method
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Analysts

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Reviews (2)

The furniture market - France

Publicado en 07/03/2022 by Olivier RICARD - Cosmmy

"Structured study with good macro and micro data. Also gives good focus and thinking to approach the market and its segments Also opens up interesting avenues and sources to go further depending on one's needs."

The furniture market - France

Publicado en 15/01/2021 by Michelle Kamar - Source RP

Lots of outdated numbers (2018) when more recent ones have been released


Businesscoot Response:

Hi Michelle, Thank you for your feedback. We are planning to update this study, we will keep you posted as soon as it is available. :)