Italy’s Wood Furnishing Sector to Recover, Rising 2 Percent in 2024
In its latest report, FederlegnoArredo, the Italian federation of woodworking and furniture industries, sees the market recovering slightly next year "despite an unstable international context."
MILAN — FederlegnoArredo, the Italian federation of woodworking and furniture industries, said exports of Italian furniture in 2024 should bounce back slightly, despite falling consumer confidence and restrained spending patterns worldwide.
According to its most recent monitor report, the organization expects the value of the wood furnishing supply chain to inch up by 2 percent in 2024, even though jitters regarding the effect a further hike in interest rates to curb inflation may have on the home furnishings industry are forecast to persist after the new year.
The year 2023, however, is expected to close with a steep drop, with the value of the wood furnishing supply chain seen posting a 7 percent decline in terms of revenue, with exports falling 7.2 percent.
“We are now facing a period of adjustment and normalization, which is also placed in an unstable international context, an enemy to business and markets,” stated FederlegnoArredo president Claudio Feltrin. He said the organization sees exports returning to growth of 6.8 percent in 2024, commenting on the strength of the Middle East markets, especially Saudi Arabia, the United Arab Emirates and India.
This year was dragged down by echoing effects of the war between Russia and Ukraine and a slowing Chinese market, he added. Sector-wide, a moment of reckoning was generally expected by the furnishing sector following the unprecedented, positive effect the COVID-19 pandemic had on sales of interiors and decor. Last year Italy's wood furnishing supply chain was still benefiting, and saw a 12.7 percent rise versus 2021, increasing its value to 57 billion euros, versus 43 billion euros in 2019.
This year's data was based on a sample of companies that account for 18 percent of the industry's total revenue. Together, their aggregate sales amount to 10 billion euros and 56.5 percent of the total Italian furniture supply chain. Feltrin said that the upcoming Salone del Mobile in
April will be an opportunity to “lay the foundation for investments in 2025,” as person-to-person networking once again becomes the norm.
Across Europe, major firms like accessible home and furnishings company Maisons du Monde said dimming consumer confidence across Europe and inflation had a direct effect on its thirdquarter results, adding that deteriorating macroeconomic trends resulted in lower traffic both in stores and online.
In September, the European Union lowered its forecast for economic growth for 2023 and 2024, noting that inflation is impacting individual spending in shops. At the same time, higher interest rates are limiting the access to credit needed for investment and purchases.
The European Commission said a recent flash estimate showed eurozone consumer morale decreased to an index reading of negative 17.9 in October from negative 17.8 in September.
Home to some of the biggest names in luxury furnishings such as Cassina, Molteni Group, Poltrona Frau, B&B Italia and Armani Casa, Italy averted recession in the third quarter, but its national statistics office Istat released concerning data on the effect the strong acceleration in inflation has had on Italian citizens and their families.
According to Istat, in 2022 more than 5.6 million individuals, or about 9.7 percent of its total population, were living below the poverty line, compared to 9.1 percent the previous year, as prices from food to energy peaked to record highs.