Panels & Furniture Asia March/April 2018

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40 MARKET REPORT By Roberta Mutti and Franz Rivoira, ICON - Italian Consulting Pte Ltd The furniture market is picking up as the world economy shows signs of recovery. By the end of 2017, global GDP reached 3.5 per cent, with both developed and developing economies showing positive signs of growth. Among the BRIC countries, Brazil and Russia are emerging from recession; China has had a higher-than-expected growth in 2017; India is expected to expand over seven per cent until 2020. The outlook is positive for the next three years, with emerging countries growing at a rate of more than four per cent. Developed countries however, will inch up just under two per cent on average. Among the high-income economies, the U.S. will continue on its growth trajectory while Europe is likely to slow down to an average of 2.2 per cent. Thanks to this positive rebound, world trade in manufactured goods also rose by 4.9 per cent. In 2018 growth is expected to remain above four per cent. Country Market share (%) China 35 Germany 8 Italy 7 Poland 7 Vietnam 6 The top fi ve furniture exporters account for 63 per cent of the world's furniture exports. Country Market share (%) China 29 United States 20 India 5 Japan 3 UK 3 France 3 Canada 2 Italy 2 These countries account for 75 per cent of the world’s total furniture consumption. THE WORLD’S FURNITURE MARKET The global furniture market, valued at US$425 billion in 2017, is expected to jump by 3.5 per cent in 2018. The global furniture trade in 2017 also increased by three per cent compared to 2016. This year, the international furniture trade is expected to rise by about four per cent, with the main bulk of this growth concentrated mainly in Asia Pacific. China is still the largest furniture exporter, accounting for 35 per cent of the global total. Its market share is still increasing. This is followed by Germany, Italy, Poland and Vietnam. Together, these top five exporting countries account for 63 per cent of the world's furniture exports. APAC AND THE FURNITURE INDUSTRY Considering that over half of the world’s furniture is produced in Asia Pacific, and that about 40 per cent of trade takes place here, the market is of great interest to major players. Malaysia and Vietnam are among the world’s top 10 exporters, taking 8 th and 5 th place respectively. Both producing countries dominate the low-end and wood furniture segment. Vietnam’s leap forward is mainly due to lower labour cost compared to neighbouring countries. Between 2004 and 2010, the number of furniture manufacturers in China doubled. There are currently about 5,500 Country Market share (%) United States 28 Germany 10 United Kingdom 6 France 5 Canada 4 The top fi ve furniture importers account for 53 per cent of the world's furniture imports. Growth forecast for the furniture market in 2018 – 2019. Source: CSIIL. March / April 2018 • Issue 2 • PANELS & FURNITURE ASIA
MARKET REPORT 41 furniture manufacturers in China, employing about 1.2 million people. In 2016, the production value of China’s furniture industry was over RMB855 billion (US$124 billion). China continues to invest in this sector. In 2016, an estimated RMB306 billion (US$48.7 billion) was poured into technology to boost output. From 2013, the domestic market began to grow and today, this market absorbs a huge proportion of locallyproduced goods. Wood furniture accounts for 64 per cent of total furniture production, followed by metal (19%), bamboo, rattan and plastic. In the past five years, rattan and bamboo furnishings have seen an increase of 43 per cent; wood gained 20 per cent; plastic, 11 per cent; and metal, nine per cent. Overall, Chinese exports grew steadily from 2004 The main players in the world furniture market account for 75 per cent of global consumption. Source: CSIIL. to 2015, reaching US$53 billion in 2015. (However it later fell to about US$50 billion in 2016 and 2017.) THE FUTURE The demand for designer and luxury products will increase. The luxury furniture market will reach US$5.4 billion by 2020 according to a recent report by ApacMarket.com. Increased disposable income, improved consumer lifestyles and GDP growth will support market growth in the Asia Pacific region. The furniture market will also depend on how well the real estate sector develops. The expansion of the luxury furniture segment will also lead to more variety of materials used in manufacturing. Wood currently accounts for 24 per cent of total production, followed by metal, leather, plastic and glass. Asian furniture industries must make an effort to develop better quality products, invest in product design, and marketing and communication strategies to serve the consumers of the future. ℗ This article was first published on FurnitureAndFurnishing.com. Reprinted with permission. PANELS & FURNITURE ASIA • Issue 2 • March / April 2018
Page 1 and 2: MICA (P) No: 138/05/2017 • ISSN:
Page 4: CONTENTS 18 44 36 4 EDITOR’S NOTE
Page 8 and 9: 6 NEWS DYNAMIC CHANGES IN AUSTRALIA
Page 10: 8 NEWS '2018 WILL BE ONE OF THE BUS
Page 13 and 14: NEWS 11 PINE - THE MATERIAL OF THE
Page 16: 14 NEWS SOUTH KOREA RAISES GDP FORE
Page 19 and 20: NEWS 17 WOOD, THE HIGH- PERFORMANCE
Page 21 and 22: PANEL MANUFACTURING 19 PANELS & FUR
Page 23 and 24: PANEL MANUFACTURING 21 All things c
Page 25 and 26: PANEL MANUFACTURING 23 Company Year
Page 28: 26 PANEL MANUFACTURING PRODUCT HIGH
Page 31 and 32: PANEL MANUFACTURING 29 minimises as
Page 33: FURNITURE MANUFACTURING 31 Cities m
Page 36 and 37: 34 FURNITURE MANUFACTURING Vietname
Page 38 and 39: 36 IN PERSON Malaysian architect Az
Page 40 and 41: 38 IN PERSON This philosophy is evi
Page 44 and 45: 42 MARKET REPORT Source: American H
Page 46 and 47: 44 MATERIALS About 40 per cent of t
Page 48 and 49: 46 MATERIALS AMERICAN RED OAK IN A
Page 50 and 51: 48 MATERIALS HARDWOOD MARKET REPORT
Page 52 and 53: 50 MATERIALS Thermally modified and
Page 54 and 55: 52 STRUCTURAL ELEMENTS March / Apri
Page 56 and 57: 54 STRUCTURAL ELEMENTS An engineeri
Page 58: 56 SHOW PREVIEW Just when you thoug
Page 61 and 62: SHOW PREVIEW 59 The Russian Pavilio
Page 63 and 64: 2018 by Panels & Furniture Group 4
Page 65 and 66: 24-27 October 2018 2 nd Edition THE
Page 67 and 68: WOOD CLINIC 65 indicated (see Fig.
Page 69: THE MALAYSIAN MDF MANUFACTURERS ASS
Page 74: ADVERTISERS’ INDEX March / April

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