The Information and Decision Support Center of the Council of Ministers issued a report entitled “The Furniture Industry Globally and Locally”, in which it dealt with the situation of this sector at the global level, its situation within Egypt, and the most prominent international actors in the field of the furniture industry, while addressing the impact of the Covid-19 pandemic on the furniture industry.Furniture, in addition to reviewing the leading international experiences in this field.
The report indicated that the furniture industry is one of the productive industries that has achieved great development during the last period, due to the diversity of the inputs used and the tremendous technological development within it. Manufacturing, including wood, which is the most . material used in the furniture industry worldwide, and MDF wood, which is generally used as an alternative to wood in modern homes, and due to its low price and multiple functions, it is one of the most common materials used in the manufacture of furniture used, glass, metal and acrylic and plastic.
The report of the information and decision support center indicated that the value of furniture exports worldwide amounted to about $328.6 billion in 2021, compared to about $263.8 billion in 2020, an increase of about 24.6%. China ranks first as the largest exporter of furniture in the world, as the value of Chinese exports of furniture as a percentage of the world’s total exports of furniture amounted to about 42.4% in 2021. It was followed by Germany with a rate of 5.9%. , then Vietnam with a rate of 5.8%, and with respect to the value of global imports of furniture It amounted to about $291.6 billion in 2021, compared to about $232.1 billion in 2020, an increase of about 25.6%. The United States of America ranks first as the largest importer of furniture in 2021, as the value of US furniture imports as a percentage of the world’s total furniture imports was approximately 27.9%, followed by Germany at 8.2 %, then the United States of America. Kingdom at 4.9%, as for large companies. In the global market for the furniture industry, which contributes to the growth of this industry, it is as follows; Ashley Furniture, IKEA Group, Herman Miller Corporation, HNI Corporation and Steelcase Corporation.
The report drew attention to the fact that medium and small companies are expanding their scope of work in the market by entering new markets, due to technical improvements and innovation in products and aesthetic designs.
Regarding the impact of the Covid-19 pandemic on the furniture industry worldwide, the report said that despite the closures related to the Covid-19 pandemic during 2020, the revenue generated in the furniture industry sector saw an increase of 1.8% was, compared to 2019, and this is due to the purchasing behavior of individuals. And there was an expectation that the growth rate of the furniture industry worldwide would show a decline in 2022, after recording a growth of around 11.3% in 2021.
This is due to the high levels of inflation worldwide, in addition to the rise in energy prices, which has limited the purchasing power of individuals, but is expected to rise again over the next five years as individuals prepare to equip their homes for the first time.
It is noteworthy that the percentage of the revenue generated by the sale of furniture via the Internet (online) worldwide out of the total revenue generated from furniture sales increased in 2020, as it recorded a growth of approximately 17%, compared to around 15% in 2019, and this percentage is expected to continue in On the other hand, the increasing use of e-commerce platforms has accelerated the growth of the furniture market in the leading countries.
This growth is also driven by the various unique designs and models of the furniture products they offer, which has led to large companies taking advantage of multi-channel distribution strategies, which will lead to more revenue, and this, and it is expected that the United States of America will have the highest revenue during the period (2022 – 2027), followed by China, then Germany, then France, then the United Kingdom.
Regarding the status of the furniture industry in Egypt, the report said that the furniture industry in Egypt is one of the oldest industries, requiring high levels of craftsmanship. Egypt has many comparative advantages that characterize the furniture industry, including: Egypt’s excellent geographical location, which easily improves access to the main markets, and the relatively low cost of skilled labor International markets from large companies to small retailers.
Regarding the relative importance of the wood and furniture industry sector in Egypt, the data indicate that every pound spent in the furniture sector in Egypt adds more than 50 piastres to the national economy, compared to an average of 30 piastres for the entire industry sector in Egypt Egypt is 2.2% of the GDP, and the number of companies operating in the furniture sector in Egypt is 15.8 thousand, and it should be noted that every million pounds invested in the furniture sector in Egypt is approx. 10 jobs provided, compared to around 3 jobs provided if the amount is invested The same applies to the rest of the sectors, and the data from the Industrial Development Authority indicates that the number of workers in the furniture sector in the enterprises registered with the authority , reached about 69 thousand workers by 2022, compared to about 60.8 thousand workers in 2021, an increase of 13.5%.
The report highlighted the main areas in which the furniture industry in Egypt is concentrated, including Damietta governorate, which has been able to achieve an advanced position at the local and international level, and approximately 70% of the workforce within the governorate works in the furniture industry. The furniture industry maintains production units, most of which are run by the private sector.
Within the framework of the Egyptian government’s directives to support medium and small projects, Damietta Furniture City was established and opened in December 2019. This project is one of the most important national projects established with the aim of developing the furniture industry in Damietta to upgrade, and to transform this industry from a craft to an industry that uses modern technological methods And to serve as a gateway for Damietta furniture to reach international markets. Damietta Furniture City is the largest industrial zone and the first of its kind in the Middle East, which is specialized in the furniture industry and its complementary industries. The Al-Manasra area is considered one of the most important furniture industry areas in Cairo Governorate, and it is considered a microcosm of Damietta City, and this area is still the first in Cairo governorate for the furniture trade. , as its prices suit all segments of society, and the region includes thousands of workers and dozens of workshops, and the region is currently facing strong competition with furniture imported from China at a lower price; This is due to the high prices of furniture in light of the high prices of wood and raw materials to a large extent. The village of Tannan in Qalyubia Governorate has long been known for its furniture industry, and this village comes in second place. place to Damietta Governorate in the manufacture of furniture. This industry offers many job opportunities for young graduates or students during holidays. This village offers high quality furniture products at the lowest prices in the country.
The report of the Information Center highlighted the beginning of the furniture sector in Egypt for export, since the early sixties to both the Soviet Union and Eastern European countries, and in the early eighties exports were made to Arab countries, especially the Gulf countries, and from In 2011, the sector faced a decline in demand volume; Due to the decrease in economic growth rates and the decrease in the volume of tourism, in addition to the depreciation of the local currency, which led to an increase in the cost of importing wood and raw materials. However, it should be noted that the decline in the value of the local currency can serve as support for Egypt’s furniture exports.
Recently, Egypt’s furniture exports have decreased, as the period (2017-2021) has seen a gradual decline in the value of Egypt’s furniture exports. In 2021, the value of Egypt’s furniture exports amounted to about $214.7 million, compared to about $220.0 million. In 2020, with a decrease of 2.4%, the Kingdom of Saudi Arabia came to the forefront of the countries in the world in importing furniture from Egypt in 2021, as it imported $44.7 million, which Representing 20.8% of Egypt’s total furniture exports, followed by the United Arab Emirates with a value of $30.2 million. , then Iraq, with a value of $20.7 million, and the report highlighted an increase in Egypt’s furniture imports by 7.2% in 2021; To record 303.3 million dollars, compared to about 282.9 million dollars in 2020, but this is down compared to about 10% from 2019, during which it recorded 337.1 million dollars.
The report also touched on successful international experiences in the furniture industry, the most important of which are; China, where the Chinese economy saw a recovery after the negative impact of the Covid-19 pandemic, as the revenue of furniture manufacturers increased by 13.5% year-on-year in 2021, and metal and wood furniture by almost 80% of the furniture made in China, while soft furnishings accounted for 7.6%. Furniture retail sales in China also increased by 4.3% in 2021, and the production of wooden furniture, metal furniture and soft furniture increased by 14.1%, 17.7% and 6.1% in 2021, respectively. Total furniture production in 2021 increased by 14.0% compared to 2020, to 1.12 billion pieces.
Germany is one of the largest exporters of furniture in the European Union, in the world, as Germany is second only to China as the largest exporter of furniture in the world, making the furniture industry one of the markets with high profits, as the volume of the furniture industry increased by 13.4% in the first half of 2022, and furniture manufacturers in Germany were able to increase their sales by approximately 9.5 billion euros in the first half of 2022.
Then Vietnam came in the third place after China and Germany as the largest exporter of furniture in the world during the year 2022, as Vietnam has become one of the best places in the world to establish furniture factories, and Vietnamese furniture is becoming more if 120 executed. countries, including the main markets, which are: the United States, the United Kingdom, Canada, Australia and Japan, and the Vietnamese kitchen furniture market is expected to grow at a compound annual growth rate of approximately 3.70% during the period ( 2021- 2026).
Poland is from the most important exporters of furniture in the world, as it supplies most of the furniture to Germany, the Czech Republic and Great Britain, and the share of the furniture market in Poland is about 2.3% of the Polish GDP , and thus its share of GDP increases compared to other furniture-producing countries in the European Union, according to Statistics Poland, in 2020 the total sold production of Polish furniture was approximately PLN 41.8 billion (down by 4.16% compared to 2019).
The Italian furniture industry also plays an important role in the Italian economy, and Italy is considered one of the most important exporters of furniture in the world and the fifth largest exporter of furniture globally. Italian furniture in 2018, followed by bedroom furniture by about 19%, office furniture by about 16% of sales, and kitchen furniture by about 15%. It is worth noting that Italy’s furniture market revenue reached about $15.7 billion in 2022, and it is expected to grow by 4.23 annually. %. It should be noted that living room revenue in Italy in 2022 was about $3.36 billion, and France, Germany, the United States, and Canada are Italy’s major trade partners in the furniture industry.