FederlegnoArredo, the Italian federation representing the wood and furniture industry, expects a moderate recovery in Italian furniture exports in 2024, despite global uncertainty affecting consumer confidence and purchasing behavior.
According to its latest report, the federation forecasts the value of the wood furniture supply chain to rise by 2% next year. The outlook remains cautious due to ongoing concerns about the potential impact of interest rate hikes aimed at curbing inflation, which are expected to continue into the new year.
However, the forecast for 2023 points to a significant decline, with an expected decline in wood furniture supply chain revenues of 7%, accompanied by a 7.2% fall in exports.
Claudio Feltrin, President of FederlegnoArredo, commented: “We are in a phase of adaptation and stabilization against the backdrop of an unstable global scenario that challenges businesses and markets.” He highlighted the organization's prospects, forecasting export growth of 6.8% in 2024, highlighting promising markets in the Middle East, especially Saudi Arabia, the United Arab Emirates and India.
Feltrin acknowledged that the industry has faced setbacks this year due to the lingering effects of the Russia-Ukraine conflict and the downturn in the Chinese market. The furniture sector as a whole was expecting a correction phase following an unprecedented surge in sales during the COVID-19 pandemic. Notably, the wood furniture supply chain in Italy grew by 12.7% compared to 2021, reaching €57 billion compared to €43 billion in 2019.
This year's data was taken from a sample of companies that account for 18% of total industry revenue, with total sales of €10 billion, representing 56.5% of the Italian furniture supply chain. Feltrin emphasized the importance of the upcoming Salone del Mobile in April, which is seen as an opportunity to “lay the groundwork for investment in 2025” as face-to-face interactions regain popularity.
Across Europe, major firms such as Maisons du Monde noted weaker consumer confidence and inflation weighed on their third-quarter results, citing lower foot traffic both in brick-and-mortar stores and online.
The European Union adjusted its economic growth forecast downward for 2023 and 2024, citing the impact of inflation on consumer spending and limited access to credit due to higher interest rates.
Italy, home to luxury furniture giants Cassina, Molteni Group, Poltrona Frau, B&B Italia and Armani Casa, avoided a recession in the third quarter. However, as regards data published by Italy's national statistical office Istat, the impact of soaring inflation is highlighted, showing that more than 5.6 million people, about 9.7% of the population, lived below the poverty line in 2022, a significant increase compared to 9.1% in the previous year.
