According to a companiesandmarkets.com report, the Chinese wooden furniture industry is expected to grow 52% by 2018. The report says that in 2012, from the overall revenues of China’s manufacturing sector, 59% came from wooden furniture. The Chinese manufacturing sector has boomed in the last 10 years, with China managing to surpass Italy and become the largest furniture exporter in the world.
Despite this impressive upward trend, ‘the industry’s profit is relative low, averaging 5.8% of industry revenue’ the report holds. High prices for raw materials combined with relatively low prices of Chinese furniture are some of the reasons for this low profitability. However, this can be compensated in the following years by a rising internal demand and projected higher earnings of the Chinese population. At the moment, Chinese furniture exports have a share of almost 20% of all industry’s turnover, well bellow the 28,2% share registered in 2008. For the upcoming years, the industry is expected to increase with an average of 8,8% per year, and to achieve a turnover of US$ 96,3 billion by 2018.
Another interesting market research report published by Reportbuyer.com is also on the current developments and forecast of China’s Wood Furniture Market between 2013-2017. According to report’s publisher, currently, the consumers no longer only pay attention to appearance of the wood furniture; instead, they pay more attention to the material. Many new products attract consumers by the original design and high-quality raw material. Wood material always gives clean, fresh and comfortable feeling to people, therefore, wood furniture and wooden accessories always favored by a large amount of consumers.
In 2012, the output of China’s wood furniture reached 239 million units, year-on-year decline of 2.14%. As for different provinces, the output in Shandong was 63,829,900 units with the year-on-year decline of 1.93%, the output accounted for 26.71% of China’s total output. Followed by Guangdong, Zhejiang and Fujian, the output accounted for 19.85%, 9.79% and 8.81% respectively. At the same time, cluster effect in China’s wood furniture industry is obvious.
In general, China’s wood furniture industry increased rapidly from 2007 to 2012, and the output value increased at the average growth rate of 28.24%. Huidian Research forecasts that the output value of China’s wood furniture industry will reach CNY 1.3396 trillion in 2017 respectively.
