CSIL has issued its latest report on ‘The Furniture Industry in Europe', offering all the main statistics and indicators to analyse the European furniture industry.
According to the report, Europe continues to hold a crucial position in the global furniture industry, acting as a pivotal hub for production, market size and world trade.
"In Europe, the sector's weak performance in 2024 remains evident. Most countries face similar challenges impacting their furniture industries, although the intensity varies depending on local market conditions. In nearly all European countries, negative performance trends have persisted in 2024. The German and French industries have been particularly affected, struggling with a sharp decline in construction activity and weak consumer spending. Spain, however, stands out as an exception, with residential construction continuing to provide a growth driver. Similarly, Eastern European countries, historically known for their rapid manufacturing growth, have also been affected by the challenging market conditions, particularly by the poor performance of the German economy. Poland presents another exception, with the furniture sector experiencing modest but positive growth.
"Despite difficult market conditions in 2023-2024, the sector has proven its resilience, staying above pre-pandemic levels, supported by a high level of integration, and market concentration. Dominated by major retail chains and manufacturers operating on a European scale, the market benefits from strong internal cohesion and a well-established trade network. This structural strength not only underpins its stability but also drives the substantial concentration of export and import flows within the region.
THE EUROPEAN MACROECONOMIC CONTEXT
"The European macroeconomic context in 2024 is marked by subdued growth, political fragmentation and uncertainty. Growth in Europe seems to have reached its lowest point in 2023, with GDP growth slightly weaker than projected in April and July 2024. The IMF growth forecasts for Europe are 1.5% in 2023, 1.7% in 2024, and 1.7% in 2025.
"Although goods prices have stabilised, and some are declining, services price inflation remains high in many European countries. This is partly due to rapid wage increases as pay catches up with the inflation surge of 2021–2022. Looking ahead to 2025, the IMF anticipates a continued decline in inflation but acknowledges that bumps on the road to price stability are still possible. The IMF projects that consumer prices in the European Union will increase by 2.6% in 2024 and 2.3% in 2025."
