Panels & Furniture Asia Mar/Apr 2018

PANELS & FURNITURE ASIA • Issue 2 • March / April 2018 MARKET REPORT 41 furniture manufacturers in China, employing about 1.2 million people. I n 2 0 1 6 , t h e production value of China’s furniture industry was over RMB855 billion (US$124 billion). China continues to invest in this sector. In 2016, an estimated RMB306 billion (US$48.7 billion) was poured into technology to boost output. From 2013, the domestic market began to grow and today, this market absorbs a huge proportion of locally- produced goods. Wood furniture accounts for 64 per cent of total furniture production, followed by metal (19%), bamboo, rattan and plastic. In the past five years, rattan andbamboo furnishings have seen an increase of 43 per cent; wood gained 20 per cent; plastic, 11 per cent; and metal, nine per cent. Overall, Chinese exports grew steadily from 2004 to 2015, reaching US$53 billion in 2015. (However it later fell to about US$50 billion in 2016 and 2017.) THE FUTURE The demand for designer and luxury products will increase. The luxury furniture market will reach US$5.4 billion by 2020 according to a recent report by Increased disposable income, improved consumer lifestyles andGDP growth will support market growth in the Asia Pacific region. The furniture market will also depend on how well the real estate sector develops. The expansion of the luxury furniture segment will also lead to more variety of materials used in manufacturing. Wood currently accounts for 24 per cent of total production, followed by metal, leather, plastic and glass. Asian furniture industries must make an effort to develop better quality products, invest in product design, and marketing and communication strategies to serve the consumers of the future. ℗ Th i s a r t i c l e wa s f i r s t pub l i s h e d o n Fu r n i t u r e An d Fu r n i s h i n g . c om . Reprinted with permission. The main players in the world furniture market account for 75 per cent of global consumption. Source: CSIIL.