On the occasion of the press conference of the Salone del Mobile.Milano 2024, the 2023 preliminary figures processed by the FederlegnoArredo Study Centre based on Istat data were presented.

The 2023 turnover of the wood-furniture supply chain stands at EUR 52.6 billion, recording an overall drop of 8.1% on 2022. This result derives mainly from the domestic market at 32.7 billion euro (62% of the total), which shows a negative trend (-10.1%), but which also affects exports (-4.5%) with a turnover of almost 20 billion euro (38% of the total).

Claudio Feltrin, president of FederlegnoArredo, explains how in the first eleven months of 2023, industrial furniture production recorded -5.3% and wood production -14.8%. Fewer products were produced even though sales on the'22 were still higher than in 2019 due to the increase in prices (furniture +6.5%) and, as a result, companies' margins were reduced.

"However, it should be pointed out," Feltrin concludes, "that one of the factors that caused the downturn in the supply chain as a whole is also the physiological drop in domestic demand, after two years of exceptional growth, due above all to the lack of the boost that the various building bonuses gave to the sector and whose progressive downsizing will continue to negatively affect the results of our supply chain.

Furniture and Wood Macrosystem

After approaching EUR 29 billion in 2022, the turnover of the furniture macro-system in 2023 will shrink slightly to EUR 28 billion with a total drop to 3.4% and a very small difference between the domestic market (EUR 13.2 billion) at -3.2% and exports (around EUR 15 billion) at -3.6%, but whose share of total turnover remains stable at 53%.

Porro, Makura bed, design Piero Lissoni

Worse are the figures for the wood macro-system, where an even more marked drop in turnover is recorded (-11.6%), thus reaching 21.4 billion Euro; while exports drop by 7.3% reaching 5.1 billion Euro in value, the domestic market is close to 16.3 billion Euro and is even 12.8% lower. In addition to this, wood trade reaches EUR 3.2 billion in turnover in 2023 with a percentage change of -20%.

A difficult geopolitical situation

In a supply chain such as the Italian wood-furniture industry, which is particularly dedicated to exports, the ongoing wars, the geopolitical balances in the making and now also the recent Suez Canal crisis have a profound effect on several fronts. Consider that the export value of the wood-furniture supply chain on the Red Sea route amounts to about 2.5 billion, while the import is about 1.9 billion. From the tripled costs of containers, which fall downstream on the cost of finished products, to energy, which rose again in the first months of '24, the price of wood, on the other hand, after reaching a peak in October 2022, has begun to fall, albeit very slowly. In fact, the latest available data show that in the period January-November'23 the increase in wood was still 1.2% compared to the same period in '22.

Export data: a complex puzzle

Infodata from the FederlegnoArredo Study Centre based on Istat data show that for exports, France is still in the lead (2.7 billion euro) at +0.6%, followed by Germany, (1.8 billion euro) grappling with a heavy internal crisis, at -6.4%. The United States (EUR 1.7 billion) dropped to third place after two years of above-average growth in which it had outperformed Germany, at a heavy -13.2%. China, still firmly in seventh place (458 million), recorded -19.1%, proving to be the worst performer among the top 10 destinations. To find a positive sign after the top ten one has to go down to the 12th position of the United Arab Emirates (307 million) at +3.3%; followed by Russia (246 million) at -7.4% and Canada, 15th (221 million) at -14.5%, while Saudi Arabia (185 million) is at -1.9%.

"A complex puzzle," comments President Feltrin, "in which markets enter and markets leave in short time spans that we were not used to just a few years ago. Our supply chain made up mainly of small and medium-sized companies, as we have always said, has precisely in these factors the flexibility and speed to adapt to changes. But this does not mean that it is easy, that it does not require effort, investment and vision. As a Federation we are always working to identify the tools to support entrepreneurs in such complex phases, acting as spokesman towards national and European institutions of their instances, to achieve common objectives that serve the interests of our entrepreneurial fabric and the country at the same time".

Kitchens: a sector bucking the trend

After touching the three billion euro mark in 2022, thanks to an excellent performance in both production for the domestic market (2 billion) and exports (1 billion), in 2023 kitchens, bucking the trend of the other furnishing sectors, will remain at essentially the same levels. In fact, production turnover (3 billion) shows a limited contraction of -2%, caused by the drop in production for Italy (-3%).

Exports, on the other hand, were stable: in the January-October period, the first two markets, France (EUR 165 million) and the United States (EUR 119 million), recorded +0.1% and +5.8% respectively. The third market was Switzerland (59 million euros), which recorded -1.5%.

Aran Cucine, CUCINAnD'O by Davide Oldani

"Based on the statements made by a representative sample of companies, the sector is hoping for a recovery on foreign markets, especially in the second half of 2024, also in anticipation of Eurocucina," adds Edi Snaidero, director in charge of FederlegnoArredo's Kitchens Group. "The expectation is for a confirmation edition, in which much of the research carried out in recent years by the sector will be presented, with greater integration with the world of household appliances, especially in terms of optimisation, customisation of spaces and sustainability".

Bathroom furniture: recovery expected in 2024

Thanks to the strong dynamism of the residential sector, 2022 was also a year of growth for bathroom furnishings (+9.1% on 2021). In 2023, the sector will fall back by -2.2% while still remaining well above pre-Covid levels, with a turnover of €4.3 billion. Exports are down (-5%), accounting for 40% of total turnover at 1.7 billion, while sales on the domestic market remain stable at 2.6 billion.

Skinny, the new washbasin collection by Scarabeo Ceramiche, design Niccolò Adolini

"As far as forecasts for 2024 are concerned, the expectations are for a recovery dictated also by the approach of the next Salone Internazionale del Bagno in April, as part of the Salone del Mobile.Milano, a meeting place par excellence for the international design community, and a time when companies will be able to understand potential markets and glimpse new growth prospects," explains Elia Vismara, president of Assobagno of FederlegnoArredo. "Today, the bathroom is a totally integrated concept: the market is asking us for functionality, sustainability, flexibility and a very strong customer service, and the Italian bathroom furniture presents itself at its most important appointment promising a quality experience".