The furniture industry in Ukraine, thanks to the available production capacities and resources, is actively developing and exporting its products. Despite the lack of lovemark brands, this industry shows high design potential. More than 11,000 furniture manufacturers are registered, of which 74% are micro-enterprises.
The start of the Great War had a significant impact on the incomes of entrepreneurs in the industry, which decreased by 44% from UAH 42,548 million in 2021 to UAH 26,006 million in 2023. Significant relocation of enterprises contributed to the growth of the number of manufacturers in certain regions, in particular in the Ivano-Frankivsk region.
Despite wartime conditions, the furniture industry showed resilience, with exports far exceeding imports. The largest export region — Europe, which at the end of 2023 accounted for 96% of all exports.
The markets of Poland, Germany and Denmark are the main consumers of Ukrainian furniture. However, exports to the countries of Asia and Africa decreased by two or three times due to the war, the blocking of borders and the closure of transport routes. Total exports fell 2% to $786 million in 2023, while imports totaled $355 million.
Serial, designer furniture and wood products are highly valued on the international market. Great Britain, France and Middle Eastern countries require compliance with high safety and design standards. On the American market, Ukrainian products are distinguished by high quality and design solutions, but providing large volumes is a challenge.
After the war, furniture companies faced the outflow of foreign customers, the mobilization of workers and the complication of logistics. Internal problems include a lack of qualified personnel, an imperfect education system, and a lack of space. At the international level, companies face social responsibility barriers and product certification requirements.
Experts emphasize the need to develop a strategy for successful work in foreign markets, knowledge of marketing and the specifics of business communications. A significant role is played by participation in international exhibitions, which allows not only to demonstrate products, but also to establish contacts.
In conclusion, a significant decrease in imports from Russia and Belarus after 2022 shows a change in the geopolitical situation, which affects relations in the furniture industry.
MARļYANA MALACHIVSKA-DANCHAK
Candidate of Sociological Sciences, founder and CEO of Fama Research Agency
