The Italian wood furniture industry experienced an 8.1% decline in 2023 compared to 2022, reaching approximately $56.6 billion, as reported by a recent study. This downturn stemmed from both a weakening domestic market and a decrease in exports, as outlined by FederlegnoArredo, the Italian federation of woodworking and furniture industries.
Within the industry, the domestic market, constituting 62% of total output, saw a significant 10.1% decrease throughout the year. Meanwhile, exports, comprising the remaining 38%, also experienced a notable decline of 4.5%.
FederlegnoArredo President Claudio Feltrin attributed the overall decline to a natural reduction in internal demand following two years of exceptional growth. While acknowledging that 2023 showed improvement compared to the pre-pandemic year of 2019, Feltrin noted its impact on inflation and emphasized the uncertain macro environment heading into 2024.
Highlighting the industry's heavy reliance on exports, Feltrin pointed out the significant impact of ongoing conflicts, shifting geopolitical dynamics, and the recent Suez Canal crisis. These factors have led to tripled container costs, affecting the final product's pricing, along with fluctuations in energy prices, which began to rise again in early 2024.
Feltrin also addressed the gradual decline in wood prices, albeit at a slow pace. Regarding exports, France emerged as the top destination with 2.7 billion euros (+0.6%), followed by Germany at 1.8 billion euros (-6.4%), experiencing internal crises. The U.S., previously second, fell to third place with 1.7 billion euros (-13.2%), marking a decline after two years of growth. Notably, China witnessed the most significant drop within the top 10, with a decrease of 19.1%.
In light of these challenges, Feltrin described the industry's landscape as a complex puzzle, with markets fluctuating rapidly. He emphasized the resilience of the predominantly small and medium-sized businesses within the supply chain, attributing their adaptability to changes in market dynamics. However, he underscored that such adaptation demands substantial effort, investment, and forward-thinking vision.
