The sofa market - France (2023)

1.2 A growing global market to 2028

The USA is the world leader in the living room furniture market, with sales in **** of around ***.** billion USD. This is a growing market, driven by consumers' desire to feel at home. The health crisis has effectively forced us to stay at home, which in economic terms has led to an increase in demand for living-room furniture and sofas. the living-room furniture market is driving growth in the global furniture market, a sector which is estimated to be on the increase. the importance of comfort and well-being in the home means that the sofa market is forecast to grow at a CAGR of *.**% between **** and ****.

Comparison and sales estimates for the living-room furniture market (***) World, ****-****, USD billion Source: Market.us The sofa market is therefore a sub-segment of the living-room furniture market, which itself belongs to the broader furniture market. Nevertheless, the largest market segment remains "living room furniture", with a total market volume of ***.** billion USD in **** . Let's take a closer look at the sofa market (***).

Sofas&Seats market sales estimates and trends World, ****-****, USD billion Source: ****

1.3 The French market returns to growth

In ****, furniture sales will pick up sharply, rising by over **% compared to fiscal ****, stabilizing at **.* billion euros and then rising to **.** billion euros in ****. This is the first time the market has broken the fourteen-billion-euro barrier. Seats & sofas will account for nearly **.*% of the total market value of furniture in France in ****, compared with nearly **.**% for the bedding market .

Furniture market sales trend France, ****-****, billions of euros Source: ****

The two confinements of **** have put housing back at the center of attention for French households, who are posting numerous renovation and refurbishment projects for their interiors. Furniture sales in **** are taking full advantage of this desire to refurbish. If we compare the results for **** with those for ****, the market has grown by *. *% compared with this last reference year, representing a gain in value of over one billion euros. This trend will continue in ****.

French households are looking for comfort in their homes, and are not hesitating to invest and upgrade. As a result, in IPEA's monthly surveys of purchasing intentions throughout the second half of the year, sofas systematically topped the list of furniture purchases. Conversely, the bench seat invariably came last. While sales of banquettes have risen significantly, they have ...

1.4 French foreign trade in seats&sofas

Since ****, the French furniture market has been experiencing a growing trade deficit due to the increasing penetration of foreign products (***) , while at the same time exports by French manufacturers have grown by only *.*% on average per year.

The vast majority of French furniture exports in **** will be destined for the European market, notablyGermany (***).

Furniture manufacturers in France face intense international competition from both continental Europe (***) and China, the country's leading furniture supplier, which will account for over **% of imports in ****. Chinese imports have more than doubled over the last ten years.

Evolution of the balance of trade in wooden furniture for dining rooms and living rooms France, ****-**** A COMTRADE

Main destinations for French sofa exports France, ****, in millions of dollars A COMTRADE

The vast majority of French furniture exports in **** are destined for the European market, particularly Switzerland, Germany and Italy, but the United States is also a very important customer (***).

France's main sofa suppliers France, ****, in millions of dollars A COMTRADE

France's main suppliers of sofas are China and Italy.

2.1 Demand analysis: Buying intentions and consumer behavior

In ****, **% of households surveyed planned to buy furniture to improve their interiors. consumers are ready to invest more in their furniture, especially as the sums saved since the start of the first confinement are colossal, with over *** billion euros more put into the bank by households.

During the two confinements, the French refocused on their homes, which were then converted into veritable cocoons, against a backdrop of social anxiety. IPEA, l'Institut d'études et de promotion de l'ameublement, has forecast that sales of interior furniture (***) will rise by **.*% in June ****, **.*% in August **** and **.*% in October ****. An IPEA survey shows that the sofa is the number-one purchase in household interior considerations.

Survey of French household purchasing intentions for all types of furniture France, ****, in % Source: ****

in all, the French have spent ** billion euros on home furnishings, or nearly *% of their total budget. This trend is set to continue.

French habits and attitudes towards home furnishings and decorations France, ****, in batinfo

The French's favorite home furnishings and decorating brands France, ****, in % of respondents who buy from the brand at least once a year Opinionway for bonial

According to an Opinionway survey for Bonial, the French are particularly sensitive to furniture prices (***).

In terms ...

2.2 The influence of the real estate market on French household demand

Another point is that the sofa market is directly linked to developments in the construction and housing markets. In fact, the sale of sofas is positively correlated with the purchase of real estate and, consequently, the construction of new buildings. Recent figures from the Ministry of Housing put us in perspective as to the future increase in demand for seating and sofas, relative to the consequent rise in new construction projects.

A general downward trend in the total number of homes authorized and started between **** and ****, with some fluctuations. For example, authorized housing decreased by **% from **** to ****, while housing starts fell by **% over the same period. However, a slight increase is observed in **** compared to ****, with a growth of **% for authorized housing and **% for housing starts. In ****, authorized housing units increase slightly compared to ****, while housing starts decrease.

Change in housing starts related to an increase in demand for seating and sofas France, ****-****, in thousands of units Source: ****

As a result, there's a clear shift after ****, when construction picks up again, reaching its peak in ****. The same applies to the demand for seats and sofas, which has continued to grow post Covid-**, and the intention to buy seats and sofas ...

2.3 New consumer trends in a constantly evolving market: from cocooning to web-to-store

New consumer trends have emerged in the sofa market in recent years, with the success of affordable design products and the emergence of made-to-measure products, enabling customers to customize their orders (***)

Household demand for sofas is also underpinned by cocooning and hiving trends , which reflect a search for well-being and domestic comfort .

The crisis has also seen the rise of online sales in the furniture market. While manufacturers' stores were much more in demand on the Internet during the confinements (***), most of them continue to rely on a "phygital" model, based on the complementarity between digital and physical points of sale in the purchasing process . Websites can be used to redirect customers to a physical point of sale. This "web-to-store" model is designed to speed up the purchasing act.

Another interesting point is that **% of French people bought at least one second-hand product in ****, compared with **% in ****. This increase is due in particular to the rise of online sales sites such as Leboncoin, which make it easier for buyers and sellers of second-hand goods to come together. Nearly * out of ** French people buy second-hand furniture, according to a June **** survey. **% of French people take into account the origin of the furniture ...

3.1 Market structure

The furniture market, made up of manufacturers, distributors and retailers, offers a wide range of products for interior design. The sofa, as a key element of living-room furniture, occupies a central position in this market. The constant demand for sofas with innovative design and customizable features influences competition between manufacturers. Consumers' changing preferences and their search for comfortable solutions help to shape the dynamics of the sofa market within the furniture sector.

Furniture market structure France, ****, in % of total IPEA

Sofas and benches represent **.*% of the furniture market in terms of sales.

Growth rates for different furniture market segments France, ****-****, in IPEA

The dynamic of sofas and benches is relatively stable (***).

Change in the number of establishments manufacturing interior furnishing seats France, ****-****, in units URSSAF

The number of establishments producing sofas tends to remain fairly stable, although there will be a slight drop of *% between **** and ****.

Change in salaried employees in the manufacture of interior furnishing seats France, ****-****, in units URSSAF

The number of employees has been on a downward trend since ****: -**% in seven years.

3.2 Distribution channels in the furniture industry

Taking advantage of a very buoyant French market in ****, the main retail chains owned by furniture manufacturers have continued to densify their territorial coverage in recent months, and most of them intend to continue doing so in the coming years. with ** stores, Gautier aims to have *** outlets in France by ****.

For its part, Gautier has been testing its first city-center store for almost a year, with the aim of attracting a more urban clientele unaccustomed to frequenting shopping areas on the outskirts of towns.

However, the furniture manufacturers' direct customers are the various furniture distribution channels. In ****, sales of domestic furniture by channel would break down as follows:

mass furniture retailers (***) specialists (***) dIY superstores (***) mid/high-end furniture (***) e-commerce pure-players (***) other channels (***)

Share of different distribution channels in the furniture industry France, **** Source: ****

Mass-market home furnishings retailers (***) are thus the main consumer furniture distribution channel in France, with a **.*% market share by value in ****.

Sales by retail channel in the furniture market France, in billions of euros IPEA

In detail, some *** stores set the market tempo.

Number of IKEA, CuirCenter, BUT and Maisons du Monde stores France, ****, in units Source: ****

3.3 Market leaders and their ambitions

The sofa market in France is a concentrated one, owned for the most part by powerful manufacturers who are trying to stay in the European and global race through takeovers and mergers. Alpagroup, for example, has owned IKEA Industry since ****.

Who are the leading manufacturers in the seating and sofa market? France, ****, in millions of euros Source: ****

Focus on market leader Alpagroup; Born in May **** from the merger of P*G Group and Alsapan, Alpagroup is an integrated specialist in furniture manufacturing, also involved in the production of wood panels, floor coverings and closet doors.

Its customers include Ikea, Conforama, But and Adeo (***). It employs nearly *,*** people, including *,*** in France.

The group has ** factories worldwide, in France, Europe and Asia, producing over ** million pieces of furniture every year.

Evolution of Alpagroup sales and key stages in its transformation France, ****-****, millions of euros Source: ****

Market share of French leaders in the sofa market France, ****, % market share Source: ****

3.4 Geographical distribution

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Nouvelle-Aquitaine and Île-de-France are the two regions with the most establishments. In Centre-Val de Loire, there will be just * establishments in ****.

3.5 Value chain

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4.1 Price trends in an inflationary context

After a contraction triggered by the health crisis, housing starts rose by **.*% in ****. The appeal of single-family homes to the French and a catch-up effect in the multi-family sector have restored the vitality of the housing market. The rise in housing construction will stimulate demand for seating and home furnishings when the goods are delivered, i.e. * or * years later. From September **** to September ****, prices rose by just *.*%.

Manufacturers' sales are partly influenced by changes in selling prices. These vary according to the balance of power with distributors, which has historically been unfavorable to producers. They are also influenced by input prices (***), as well as by manufacturers' strategies to move upmarket or, on the contrary, to refocus on a low-cost offering.

Price index trends in the lounge furniture market France, ****-****, CPI base *** Source: ****

Sales were buoyed by a favorable price effect. Average producer prices for seating and furnishing furniture rose by *.*% in ****. After the shutdown of sawmills and wood and metal processing plants in spring ****, the upturn in demand at the end of ****, combined with low inventories low inventories, led to a shortage and a surge in wood and metal prices, with major repercussions on manufacturers' activity.

Average producer prices ...

4.2 Analysis of product types and supply trends

Leading manufacturers' product ranges have evolved in response to these changes, as well as to changes in demand.

Indeed, the health and economic crisis has not slowed furniture manufacturers in their strategies to modernize their production facilities. In February ****, for example, Fournier announced an investment of €*** million between now and **** in its production facilities in France .

When we talk about the sofa market, we're referring to different types of sofa, at different prices.

The two-seater sofa is very practical. It takes up very little space. That's why it's often placed in a small living room. It's the ideal piece of furniture for a small apartment or studio. The three-seater sofa. This model is the most common in living rooms. The *-seater sofa is generally between *** and *** cm wide, with a seat height of ** to ** cm. The corner sofa stands out for its L shape. It is modular and exceptionally space-saving. The panoramic sofa. It's because of its size that it's called a panoramic sofa. It's a large piece of furniture that can accommodate up to ** people.

In terms of price, an entry-level *-seater sofa is around €***-***. Mid-range between €*** and €*,*** and top-of-the-range from €*,***.

An entry-level *-seater sofa costs between €*** and €****. Mid-range ...

5.1 Current regulations

According to the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (***), when selling new furniture, including sofas, it is compulsory to label a certain number of characteristics

Price and list of items offered for that price, such as whether or not delivery is included, main materials, manufacturing process, finish, etc. Overall dimensions, Ecological environmental contribution, Biocidal properties, If the furniture is made of leather, there is additional information on the animal species and, more generally, on the type of leather, If the furniture is textured, the label must indicate the name and percentage by weight of all fibers

If credit is proposed to finance the asset, this procedure is subject to the regulations of the Autorité des Marchés Financiers, the French consumer credit authority.if the sale is concluded remotely or over the Internet These purchases are also governed by specific regulations.

In the sofa market, the nF furniture mark is a certification issued by the FCBA, an independent certification body commissioned by the Association Française de Normalisation (***), but also its characteristics, technical conformity and the conformity of the quality management system within the manufacturing company. This marking is not ...

6.1 Segmentation

• Ikea France
• Conforama France
• BUT International
• Maisons du Monde
• Gautier Meubles
• Habitat France
• Duvivier Canapés
• And Tradition
• France Canapé
• Inside75
• Roche Bobois Groupe
• DelaMaison
• Boconcept
• Petite Friture
• Muuto
• Moooi
• Zanotta (Cassina, Haworth Lifestyle Design Group)
• Cinna (Ligne Roset)
• PoltroneSofà s.p.a
• Cuir Center (Roche Bobois Groupe)
• Delorme Meubles