The furniture market - Spain

1.1 Definition and scope of study

The furniture market comprises all the activities related to furniture; from the suppliers of raw materials used in the production, to the manufacturers of the furniture, to the distributors of the final product. However, this study will focus only on the manufacturers and distributors of furniture products, given how there is an endless choice of raw materials to be used in furniture products.

The global furniture market was worth nearly $607 billion in 2019 and is projected to grow strongly in the coming years. Embracing all types of consumers and offering a very wide range of products, the furniture market nevertheless remains primarily a renewal market, i.e. a market in which replacement purchases are more important than purchases of initial equipment. Because of the longer life of furniture, the brands rely on three factors to increase their sales: fashion effects, the construction of new housing and the mobility of the population.

In Spain, the furniture market is in good shape and is experiencing a solid growth, driven primarily by the bath and kitchen segments. However, in a market historically controlled by players selling through physical points of sale, traditional retailers are increasingly faced with the rise of e-commerce and must therefore adapt to the new market realities [Aidimme].

While the Covid-19 pandemic resulted in a lower average spending (in terms of budget) by Spanish families on furniture, the market experienced an unexpected boost following the lifting of lockdown restrictions, with people taking the opportunity to renew their homes with newer and more comfortable furniture.

There are generally several types of furniture:

• Living-room furniture
• Kitchen furniture
• Seats (sofas, armchairs and benches)
• Bedding
• Bathroom furniture
• Garden furniture
• Office/commercial furniture

Moreover, the two segments of the market that are talked about in this study (manufacturing and distribution) can be broken-down into sub-segments.

Manufacturing:

• Manufacturers of office and shop furniture
• Manufacturers of kitchen furniture
• Manufacturers of other types of furniture

Distribution:

• Retailers of furniture products
• Wholesalers of furniture products

In terms of companies, Ikea is the main player in the distribution sector, holding over a quarter of the market share. Conforama also holds a significant market share, although much smaller than that of Ikea. Moreover it is important to note that the furniture market in Spain (both in terms of manufacturing and distribution) is not reliant on big national chains, but more on smaller specialised regional retailers, hence why the market is fairly fragmented.