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EU27 furniture imports
The furniture imports in the EU27 continued to grow until 2008. In 2009, imports were down by 37% from USD 58.6 billion in 2008 to USD 37 billion in 2009 (as shown in table below). Average import growth for the period 2005 to 2009 is minus 0.2% yearly because all countries in the EU27 have experienced negative growth rates in their respective furniture imports. But prior to 2009, average import growth for the period 2005 to 2008 was at 12% yearly.
Shares of importing countries to total EU27 imports
The leading furniture importer in 2009 was Germany, covering around 28% of the total EU27 imports. See table above for Germany’s import value. Also, Germany ranked 2nd as the world furniture importer for the same year. France and the United Kingdom followed with 19.2% and 16.8% shares respectively. The rest have shares of less than 10% each such as Belgium, Austria, Italy, Sweden, Denmark, Portugal and Finland. The countries of France, the United Kingdom, Belgium, Austria and Italy were also among the top 10 world furniture importers in 2009 together with Germany.
Denmark as potential market
Among these EU27 furniture importing countries, Denmark emerges to be a robust market for furniture exports based on its average import growth of 17% yearly from 2005 to 2008. Although growth in 2009 was down by 25.4%, growth rate for the period 2005 to 2009 still managed to arrive at the average of 6.4% yearly, much higher than the EU27 average of minus 0.2%. Yearly growth peaked in 2007 when it reached 22.4%.
Factors affecting demand in Denmark’s imports
Denmark is ranked 8th as the leading EU27 importer in 2009 and as such was regarded as a medium-sized market for domestic furniture imports. Living standards are relatively high in Denmark and this reflects the preference for high quality products, both in terms of the materials used and the designs preferred, for furniture.
Demands for smaller furniture items and combination units which includes multi-purpose and space saver types with convenient and attractive designs increased to a significant level. Danes prefer their home to be an expression of how they feel about themselves instead of following mass fashion trends like what other EU27 countries have shown.
Denmark’s furniture suppliers
The number one furniture supplier to Denmark in 2009 was China covering around 24% of the total imports. See table below. Other major suppliers were from the EU27 member countries like Sweden, Germany, Poland, Italy, Lithuania and the Netherlands. Vietnam ranked 8th and representing 2.9% of total imports. On the other hand, Indonesia and the Philippines ranked 12th and 44th respectively for the same year.
Imports from Philippines
Imports from the Philippines are steadily declining at the average rate of minus 16.6% yearly for the period 2005 to 2009. Denmark’s imports from the Philippines in 2009 were down USD 212 thousands, down by 77.3% from 2008’s value of USD 932 thousand.
Opportunities and outlook
The main growth opportunities are in upholstered seating and furniture parts. Other notable opportunities are in items for non-upholstered seating and dining/living room furniture.
The furniture market in Denmark did not escape the global economic financial crisis in 2008 where the impact was felt in 2009. However, Denmark is among the most optimistic of nations and consumer confidence in spending on higher value items is likely to return earlier than in most other countries.
Considering Vietnam’s position and performance (with 17% growth outnumbering all the other main suppliers), we should conclude there is a good market for suppliers from Southeast Asia. We should therefore analyze thoroughly why exporters from the Philippines are losing out and how the downward trend could be turned around.
 Reference:
Trademap
CBI Market Survey: The domestic furniture market in Denmark
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