The furniture market - France (2023)

1.2 A booming global market

The global furniture market was estimated at $***.** billion in ****, and is expected to grow at a CAGR of *.**% to ****.

Furniture market size World, ****-****, in $ billions Source: ****

Growth is driven by various factors such as rising disposable incomes, growth in the hotel and housing sectors, developments in the commercial construction industry and increasing demand for high-end and luxury furniture worldwide.

on a global scale, the market is benefiting from growing urbanization. While in ****, according to the UN, more than half of the global population (***) lived in urban areas, this proportion is set to rise to **% by ****.

The levers on which the global market relies today are:

growth in urbanization; elasticity with respect to global growth ; the emergence of a middle class in emerging countries, reflected in a growing interest in decoration and furnishings; the growth of the real estate market : the increasing growth rate of new construction, particularly in developing Asian countries.

In order to identify the main regional players in the furniture market, we're going to take a look at the world's biggest furniture exporters.

Ranking of the biggest furniture exporters World, ****, $ billion Source: ****

Unsurprisingly, China tops the list with a total of $*.*** billion in exports. Italy and Germany ...

1.3 The French market in transition

Companies operating in the furniture manufacturing sector are grouped under NAF code **: Furniture manufacturing. Thus, to obtain the evolution of the market size in France, we use the market size in ****, then calculate that of subsequent years using sales indices.

Furniture market size France, **** - ****, in € billions Source: ****

There is a general fluctuation in sales figures from **** to ****. In ****, the value was €*.** billion, which fell slightly to €*.** billion in ****. The figures have continued to fluctuate over the years, with a low of *.** billion euros in **** and a high of *.** billion in ****. This represents a drop of **.*% since ****. However, this figure only concerns companies specializing in furniture manufacturing.

In ****, the furniture and home furnishings sector saw modest growth of *.*%, in contrast to the prosperous year of ****. Market sales stabilized at just under €** billion, indicating a weak increase in furniture sales by value.

Despite market growth in value terms, sector activity recorded an overall decline in footfall and volumes in ****. Supporting market sales, prices for indoor and outdoor furnishings rose by around **% and **% respectively, according to Insee indicators. However, industry professionals believe that this increase is probably underestimated. Compared to the sector's sales growth over **** (***), we can estimate that volumes sold in **** are ...

1.4 Unbalanced foreign trade

We consider here the data provided by UN Comtrade for the product codes below:

****: Seats, whether or not convertible into beds, and parts thereof (***) ****: Furniture and parts thereof ****: Mattress supports, bedding, fitted with springs or upholstered, whether or not covered

France is much more of an importer than an exporter on the furniture market. In ****, the country imported a total of $**.* billion in furniture goods, while exporting just $*.* billion. What's more, this trend has become slightly more pronounced over the years, as can be seen from France's coverage rate in this market (***). The lower this rate, the more dependent the country is on imports.

France's trade balance in the furniture sector France, ****-****, in millions of dollars and in % Source: ****

We can thus see that the coverage rate was in constant decline between **** and ****, meaning that France is importing more and more furniture products compared to what it exports. However, this rate rose slightly between **** and ****, gaining *.*%.

As far as France's trading partners are concerned, its main furniture suppliers areGermany, China andItaly. These three countries stand out at the top of the ranking, far ahead of their successors.

Main furniture-supplying countries World, ****, in millions of $ Source: ****

In terms of France's ...

1.5 The impact of covid on the furniture market

****: a year apart

The year **** saw a *.*% decline in the furniture market, equivalent to almost *** million euros in sales. [***] The disastrous start to the year, with a drop in activity of over **% to the end of April ****, was made up for in the following months thanks to a "rebound effect". However, containment has put housing back at the center of French people's preoccupations. Increased time spent at home and the quest for aesthetic appeal and comfort should drive growth in the furniture market in the years ahead.

Monthly performance of the furniture market France, ****, change in sales versus previous year Source: ****

****: confirmation of new consumer trends and a move upmarket

After a roller-coaster year in ****, with sales plummeting during the closed periods (***), before rebounding by around **% thereafter, the year **** has been described as "excellent" by industry professionals.

Online sales continue to grow, as certain psychological brakes have been overcome, and several chains are posting double-digit growth rates in this area. Retailers have adapted to the accelerating trend: IKEA is said to have compensated for the closure of its stores by generating half of its sales on the Internet, while online sales for Maison Du Monde jumped by **.**% in the first ...

2.1 Culturally strong demand

A **** survey by YouGov reveals just how significant interior design is in the lives of the French. In fact, **% of French people said they attach importance to interior design, with **% saying they were even very interested. The French need their own interior design to feel at home. This is particularly true in living rooms or the most convivial rooms: for **% of French people, the most important room to decorate is the living room, and for **% of them, it's the dining room.

Most important room to decorate France, ****, in Source: ****

What's more, the most widespread sources of inspiration for the French when buying an interior design item are websites(***). Social networks, meanwhile, are increasingly a source of inspiration, thanks in particular to Pinterest and Instagram. Today, **% of consumers draw inspiration from social networks, but this percentage climbs to **% for women and up to **% among young adults aged ** to **. This is all the more interesting given that they are the clientele decorating their first apartments, and who will make up the bulk of consumers in the medium/long term. We can logically assume that the importance of social networks in the purchase of interior design items will increase as each new generation enters ...

2.2 The purchasing decision

As the furniture sector encompasses a large number of products, it is important to know which product categories drive the market. Furniture accounts for the largest share of purchases (***) [***]. Sales of the various product types are evolving in different ways, as shown in the graph below.

sales trends for different furniture categories between **** and **** France, ****/****, in Source: ****

The fastest-growing sector is garden furniture (***).

The French set themselves different purchase deadlines depending on the type of product. Indeed, with the exception of garden furniture, only everyday items with a shorter lifespan than a piece of furniture, for example, can be found at the top of the ranking.

Percentage of French people who plan to buy the product in question within the next ** months France, ****, in % Source: ****

The top furniture items in the ranking, which include beds, box springs and mattresses, only come in at **ᵉ position, with **% of respondents planning to buy them within the next ** months. The following positions are all occupied by furniture.

When it comes to purchasing criteria for furnishings, the top criterion is price (***)[***].

Consumer purchasing criteria France/Europe, ****, in Source: ****

2.3 A sector strongly linked to the real estate market

The furniture market is closely linked to the real estate market in France, both new and existing. A good indicator to take into account is the number of real estate transactions. Indeed, with each transaction, new homeowners are likely to invest in interior design and therefore in furniture for their new home (***). After experiencing a slump in the wake of the crisis in ****-****, the real estate market had returned to growth.

Cumulative number of transactions for existing homes over ** months France, **** - ****, in units Source: ****

The number of transactions over ** months has never been higher than in the second quarter of ****. The number of transactions has been on the rise since ****, with growth of almost **% between quarter * of that year and quarter * of ****, rising from *** transactions over ** months cumulated to **** in almost seven years.

This increase can be explained in several ways: the postponement of sales that were not completed during the first confinement inflate the figures, but also the setting up of economic and social shock absorbers that made it possible for their real estate projects to materialize, all at a time when the market is dynamic, which anchors this trend. The housing rental market (***), and more specifically the ...

2.4 Growing demand for second-hand furniture

According to statistics, **% of French people said they had bought a piece of second-hand furniture in their lifetime, while **% said they had sold one. Over the last two years, *.* million households were recorded as buying second-hand furniture, representing **.*% of the ** million households in France.

The average annual budget devoted to the purchase of second-hand furniture by households is *** euros, half that allocated to the purchase of new furniture.

Average annual furniture budget France, ****, in € Source: ****

These households reported having purchased an average of *.* pieces of furniture over the course of the year.according to the data, households aged ** to ** show the highest rate of second-hand purchases, with one-fifth having made such purchases in the period studied. This indicates that buying second-hand is a common practice in the equipment acquisition process for this age group. Furthermore, it should be noted that even among the over-**s, one household in ten also opted for second-hand purchases, a significant rate given that this group is generally already equipped.

At present, the supply of second-hand furniture in furniture stores is limited. However, the implementation of the law "Anti-gaspillage pour une économie circulaire" (***) should lead to a significant expansion of this offer[***].

Second-hand furniture is playing ...

2.5 A look at the fastest-growing segment: the garden

In ****, sales of garden furniture in France reached *** million euros, an increase of *.*% on the previous year, outstripping overall furniture market growth of *%. From **** to ****, garden furniture sales growth was **.*%.

Size of the French garden furniture market France, **** - ****, in millions of euros Source: ****

According to IPEA (***), this growth is due to the transformation of the garden or terrace into a new living space, where the emphasis is not only on functionality, but also on design and style.

The garden furniture market is part of the wider home furnishings market, estimated at **.** billion euros in ****, representing an increase of *% compared to ****.

Furniture market segmentation France, ****, in Source: ****

The garden furniture sector thus represents a small part of the furniture market, with amarket share of only*.*%.

Indoor furniture players such as Roche Bobois are diversifying their offer by offering outdoor versions of their iconic pieces, designed to withstand the elements. This is the case with the Mah Jong sofa, created in ****, which now has an outdoor version. This trend also extends to items such as wooden decks, which now imitate parquet flooring. New markets are also emerging, such as outdoor cooking appliances, premium garden coolers, patio refrigeration solutions and outdoor bars, a ...

2.6 France's favorite furniture brands

The graph below is based on OpinionWay's survey of French people's favorite brands in March ****. These are respondents' answers to the question "Do you like this or that brand of furniture? For each brand, the percentage corresponds to the proportion of respondents who answered "yes". Ikea tops the list of French preferences, with **.*% of respondents saying they like this brand. Habitat is the least preferred furniture brand, with only **.*% of respondents saying they liked it.

French people's favorite furniture brands France, March ****, in Source: ****

The graph below compares the level of appreciation of four furniture brands according to gender. For all furniture brands, female respondents have higher approval ratings than male respondents. For these * companies, there is a gap of between *% and **% between the proportions of French men and women who say they like these brands. This discrepancy can, in part, be explained by the fact that women are the ones in charge of decorating and furnishing choices within the couple. According to a survey conducted by VivaStreet in ****, when asked "who in the household is the decision-maker when it comes to interior design?", **% of respondents answered "the woman" and **%, "the man".

Comparison of the level of appreciation of X furniture ...

3.1 Typology of market players

The production and distribution process in the furniture market can be broken down as follows:

Source: ****

The NAF code for furniture manufacturers is division **. The NAF code for furniture retailers is subclass **.**A.

it should be noted that the same group may own several subsidiaries dealing with different stages of the process, or the same company may be present in several stages. There is therefore a difference between companies that specialize in one part of the manufacturing cycle and those that are more generalist. What's more, the NAF codes quoted do not take into account companies whose furniture trade or manufacture is one activity among others, so the more global furniture sector is broader than these delimitations.

3.2 A high concentration of employees

The furniture sector is a highly competitive market. In ****, the furniture manufacturing sector comprised **,*** companies (***).

Types of company in the furniture sector France, ****, in number of establishments Source: ****

Yet despite this multitude of companies, the sector remains dominated by large groups. In fact, only *% of companies account for more than **% of employees and sales in the furniture manufacturing sector.

Number of employees by type of company in the furniture manufacturing sector France, ****, in number of employees Source: ****

The French competitive landscape is dominated by a few major groups, led by Ikea.

Main furniture chains France, ****, € billion Source: ****

The jobs created by the furniture sector are spread heterogeneously across France, with **% of salaried employees concentrated in three major regions:auvergne-Rhône-Alpes, Grand Est and Pays de la Loire.

Source: ****

The furniture manufacturing collective agreement covers *,*** apprentices, representing *% of all salaried employees in the sector.

3.3 Distribution channels

There are various distribution channels on the furniture market. There are :

mass-market furniture retailing ; mid-range/high-end furniture (***); specialists (***); dIY superstores; e-commerce (***); other channels (***).

In ****, the preferred distribution channel for the French was furniture superstores, with a **.*% market share. specialized outlets were the second most popular channel, with **.*% share, and DIY superstores rounded out the podium with **. *%.

Home furnishings distribution channel France, ****, in Source: ****

Specialized retailing, including Ikea, But, Conforama, Alinéa, Maisons du Monde, etc., recorded the strongest growth, up *%, due to consumers' growing interest in prices, mid-range and high-end furniture chains, such as Roche-Bobois, Monsieur Meuble and Ligne Roset, as well as furniture specialists, such as kitchen designers and bedding stores, saw their sales stagnate. dIY superstores, such as Castorama and Leroy Merlin, saw a decline of almost *% due to lower in-store traffic, while sales of e-commerce pure-players also fell by *%, mainly due to consumers returning to stores following the administrative closures of much of the sector during **** and ****[***].

4.1 Product categories

If we look at the websites of the various furniture and decoration brands, we can distinguish several product categories on the furniture market. Based on Ikea 's French website, for example, we find the following products (***):

Sofas Armchairs and loungers TV sets Bookcases and shelving Office and living-room storage Buffets and consoles Tables and desks Chairs Bar tables and chairs Café and restaurant furniture Beds Closets and dressing rooms Chests of drawers and pedestals Garden furniture

The furniture market therefore encompasses a very broad range of products, creating competition at every level between companies who are fighting not only for market share in the overall market, but also in the different product segments. A company specializing in sofas will therefore be competing not only with other companies in this sub-segment, but also with major furniture groups such as Ikea and Maisons du Monde.

4.2 Prices in the furniture sector

The very wide range of furniture on offer, as described above, logically implies a very wide range of prices, depending on the type and quality of the item in question. It is therefore difficult to give an overview of prices on the furniture market. Nevertheless, we can consider the major price trends in this market. INSEE reveals the consumer price index for all households in France for furniture and furnishings (***). There has been a sharp increase over the past few years. Indeed, after a period of stagnation between **** and ****, there has been a slight increase of *.* points compared to **** in ****. This increase continued thereafter, rising to ***.* in **** and ***.* in ****.

CPI Furniture & Furnishings France, **** - ****, annual average base *** = **** Source: ****

The price of an item is set according to the quality of the materials used, the more or less skilled labor behind its manufacture and the company's brand image. However, the same company will have furniture available at very different price ranges too. To get a general idea of the diversity of prices that can be applied, simply take a look at the items available on Vente-Unique. com :

4.3 Technological advances enable us to modify our offering

Recent technological developments have enabled Ikea to launch an augmented reality (***). This technology could help e-commerce fill its gaps and overcome the fact that customers can't touch or test furniture online, but at least they can now have an idea of what their home will look like with this or that piece of furniture, which buying from a physical store doesn't allow[***].

What's more, manufacturers have begun to integrate technology into furniture. Examples of connected products include nightstands with integrated wireless charging stations[***].

Finally, at the creative level, generative design allows furniture to be designed in a new way. It is possible for the consumer to set objectives for his or her products, such as the size, height and weight that the furniture must support, but also constraints such as the maximum quantity of material to be used.

5.1 Current regulations

The study covers decorative furniture, kitchen furniture, sofas, armchairs and benches, bedding, bathroom furniture and garden furniture.

When selling new furniture, it is compulsory to label a certain number of characteristics :

The price and a list of the items offered for this price, such as whether or not delivery is included, the main materials, the manufacturing process, the finish, etc. ; Overall dimensions; environmental eco-contribution; Biocidal properties; If the furniture is made of leather, additional information is provided on the animal species and, more generally, on the type of leather; If the furniture is made of textile, the label must show the name and percentage by weight of all the fibers.

The full set of labeling rules can be found on the government's Economy, Finance, Action and Public Accounts website: economie.gouv.fr.

If credit is offered to finance the goods, then this procedure is subject to consumer credit regulations.

If the sale is made via distance selling or the Internet, these purchases are also governed by specific regulations.

Under the AGEC law, unsold furniture from all brands, regardless of surface area, may no longer be thrown away. It must be donated to associations before being recycled. To facilitate the management of ...

6. Segmentation

• Ikea France
• Steinhoff
• home24
• Vente-unique.com
• Conforama France
• Schmidt Groupe
• BUT International
• Gifi France
• Casa France
• Centrakor Stores
• Selency
• Amazon
• P3G Group
• Roche Bobois Groupe
• Leboncoin (Adevinta Group)
• Celio Meubles
• Boconcept
• La Redoute AMPM
• Ligne Roset
• Knoll
• Archea
• Silvera Design
• Maxi Bazar (Zouari Groupe)
• Adoptunbureau
• MCI Mobilier
• Keria groupe
• Maisons du Monde
• CBA Meubles Demeyere Groupe (Safari groupe)
• Akante
• Fly
• Cuir Center (Roche Bobois Groupe)
• Delorme Meubles
• Majencia Vinco