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Furniture industry
The Belgian furniture industry in 2023
Sales down due to eroded competitiveness and weak demand
Sales in the furniture industry fell 7% in terms of value in 2023, after stabilising (-0.4%) in 2022, reaching €2.1 billion. The production volume fell 10.9%, while sales prices rose 3.9%. As of early 2023, there was already a sharp drop in sales by -7.2% in the first quarter. This weak activity continued throughout the year. It ended the year with sales down 8.2% in the fourth quarter.
Kitchen furniture is the only product group able to sustain turnover (+0.8% in value); this was due to an 8.6% increase in sales prices. Production volume fell by 7.8%. All other product groups in the furniture industry experienced a turnover decline in both value and volume. Domestic furniture saw a turnover decline of 5.3% in value and 10.8% in volume. Sales of office and retail furniture (-14.6% in value and -15.8% in volume) and mattresses and bases (-11.7% in value and -13.8% in volume) fell sharply in both value and volume.
Moments Furniture NV
Evolution of turnover by product group
| In million euros - 2022 | In million euros - 2023* | Evolution in value - 23/22* | Evolution in volume - 23/22* | |
|---|---|---|---|---|
| Chairs and seating, dining-room, bedroom, bathroom, garden and terrace furniture | 929.5 | 880.1 | -5.3% | -10.8% |
| Office and retail furniture | 572.8 | 488.9 | -14.6% | -15.8% |
| Kitchen furniture | 513.5 | 517.4 | +0.8% | -7.8% |
| Mattresses and bed frames | 247.7 | 218.7 | -11.7% | -13.8 % |
| FURNITURE INDUSTRY ** | 2,263.5 | 2,105.1 | -7.0% | -10.9% |
* Provisional data / ** Furniture industry nace 31 / Source: FPS Economy, VAT returns
The higher sales prices are due to the partial carry-over of higher raw material, material, energy and wage costs.
In part because of weak construction activity, demand remained low with a similar situation in export markets.
Exports and imports of furniture decrease
Belgian furniture exports (incl. transit) fell 10.8% in 2023. 88.9% of furniture exports went to the EU market, where deliveries declined 11.6%. Sales to France, the leading export market with a 32.4% share, and the Netherlands, the second leading export market with 24.4%, fell sharply by 23.7% and 11.1% respectively. However, deliveries were up 14.9% in the German market, the third most important customer at 19%.
The UK lost its place as the top export market outside the EU (2.5% share) to the US (2.9% share), following the 13% export rise in the US market; this while exports to the UK fell 10.6%.
Furniture imports were down 12.7%. The decline in imports from China continued (-8.1% in 2022 and -14.9% in 2023). Nevertheless, with a 26.4% share, China remains the leading and highly dominant supplier of furniture in our market. Dutch (15.9% share) and German (12.7% share) furniture imports fell by 4.1% and 10.2% respectively. Poland is the fourth largest supplier with a 9.2% share and maintained its deliveries (-0.7%).
Manutti
Increase in investments despite low capacity utilisation rate
The capacity utilisation rate fell to 73.5% on average in 2023; the lowest level in 10 years (82.3% in 2022). This did not stop furniture companies from investing. Investments increased, mainly to meet sustainability and circular economy requirements, for the third year in a row (+8% vs 2022).
Employment declined
The furniture industry employed 9,559 people in 2023. Compared to 2022, this is a decrease of 204 employees or 2.1% due to bankruptcies.
AP Collection
2024 outlook: cautious recovery
After an all-time low in mid-2022 as a result of the energy crisis, both Belgian and European consumer confidence recovered in 2023. Belgian consumers expressed an increased savings intent in the latest March 2024 survey. Consequently, more positive sentiment does not immediately lead to increased purchases.
Higher mortgage rates and increased prices made building substantially more expensive. Construction activity is not yet expected to recover in 2024 and is expected to decline slightly further; which will also affect the furniture industry. Since fewer new buildings means fewer new fitting projects and interiors/exteriors that do not come about until the end of the building process. It remains to be seen whether the European Central Bank will cut interest rates from summer and whether this will be followed by a possible fall in mortgage rates.
The furniture industry business cycle curve, which reflects business confidence and is some three months ahead of actual economic activity, fell in March 2024 after rising in January-February (gross curve). Consequently, there are still few signs of recovery in early 2024.
