In recent years, with the recovery of the global economy and the increasing activity of international trade, the Chinese furniture industry has also shown a vigorous development trend. China is currently the world's largest furniture producer and exporter, with a scale exceeding one trillion yuan for three consecutive years.

China's furniture exports show a clear trend of recovery

Shanghai Office Furniture Expo got information that In 2023, the global furniture market production exceeded 500 billion US dollars, and China, as the main furniture producing country, accounted for over 35% of the global furniture production.

In recent years, the overall scale of China's furniture exports has also shown a steady growth trend year by year. Data shows that the export scale of Chinese furniture was only $1.106 billion in 1995, and increased to $64.196 billion by 2023, with a compound annual growth rate (CAGR) of 15.61%.

Affected by the epidemic and changes in international trade policies, China's furniture exports have been subject to certain fluctuations. After reaching a peak of 73.831 billion US dollars in 2021, there has been a continuous negative growth of 5%, but the annual export value still remains at over 60 billion US dollars.

Entering 2024, the export of furniture and its parts saw a significant year-on-year growth, showing impressive performance.

From January to February, the export value of furniture and its parts increased by 39.8% year-on-year to 84.694 billion yuan; In US dollars, exports increased by 36.1% year-on-year to 11.916 billion US dollars.

On the afternoon of March 26th, a data release from the State Council Information Office was equally inspiring. It is reported that in the first two months, the export of domestic brand products in China increased by 14.3%, which is 4 percentage points higher than the overall growth. Among them, the export of furniture increased by 60.7%.

What are the main exporting countries and categories?

Shanghai Office Furniture Expo got information that From a regional perspective, developed countries/regions such as the United States, Japan, and Europe are key export targets for furniture in China.

In 2023, the top four countries and regions for China's furniture product exports are the United States, the European Union, Japan, and the United Kingdom, accounting for approximately 50% of the total; Among them, the United States accounts for about 27% and is China's largest trading partner in furniture exports.

By category, finished furniture such as sofas, mattresses, and office supplies are the core export categories.

According to data from West China Securities Research Institute, the export scale of sofas, mattresses, and office supplies in 2023 exceeded 15 billion US dollars, 10 billion US dollars, and 3 billion US dollars respectively.

According to customs data, the export scale of sofas, mattresses, and office supplies in 2023 exceeded 15 billion US dollars, 10 billion US dollars, and 3 billion US dollars, respectively. The export performance of these categories reflects the advantages of China's furniture manufacturing industry in design, production, and supply chain management.

From a provincial perspective, Guangdong, Zhejiang, Shandong, Jiangsu, Fujian, Shanghai, and other provinces are important distribution areas for China's furniture industry and also major export provinces.

According to data from the local furniture association, the export value of Guangdong furniture in 2023 was 124.3 billion yuan, accounting for approximately 26.1% of the national export value. The export value of Zhejiang furniture and parts in 2023 was 58.33 billion yuan.

Shanghai Office Furniture Expo got information that Although the Chinese furniture industry is facing certain pressure in terms of exports, the overall export scale remains at a relatively high level. By continuously optimizing product structure, enhancing brand value, and exploring new international markets, the Chinese furniture industry is expected to achieve greater success in the global market. Meanwhile, the support of government departments and the efforts of the industry itself will provide a solid foundation for the future development of China's furniture exports.

◆ US real estate recovery, driving furniture export performance

As the largest market for furniture exports in China, the United States has been experiencing a short-term pulse like increase in real estate sales since the Federal Reserve announced interest rate cuts in March 2020. Due to policy stimulus and changes in home demand during the pandemic, it has immediately entered a downward period. After 2-3 years of adjustment, the current US real estate industry has bottomed out and is about to start recovering.

The inventory of European and American furniture is steadily being digested, and the demand side is improving

In addition to benefiting from the boost in real estate, the inventory reduction level of furniture in Europe and America has also significantly increased. In the second half of 2022, Europe and the United States gradually entered the stage of active destocking, which has been ongoing for more than a year, and both wholesale and retail inventories have significantly decreased. With the steady progress of furniture sales, China's furniture export demand is expected to further boost after entering the replenishment cycle.

Article source: Sohu

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