An Update from the UK 

Upholstered furniture accounts for about 17% of total world furniture consumption, which is worth about US$200 billion. According to CSIL's estimates, based on processing of data from industry and official sources that cover the 60 most important countries, in 2003 upholstery consumption reached the value of US$35.3 million, increasing by 11% compared to the previous year.  

The United Kingdom is ranked second amongst the three largest furniture markets in the world, accounting for 9.3% of total world consumption. The top market is the US (37.8%) with Germany ranked third (9.1%). Real growth of upholstered furniture consumption in the United Kingdom is forecasted to be 2% in 2004 and again 2% in 2005. 

About 85% of world upholstered furniture consumption (in value terms) takes place in developed countries, including 67% in the G7 countries which, in order of consumption, are the United States, the United Kingdom, Germany, France, Italy, Japan, Canada.  

About 77% of world upholstered furniture is manufactured in developed countries (plus China). Major producing countries are the US (US$ 11 billion), Italy (US$ 3.6 billion), China (US$2.8 billion and growing fast), the United Kingdom (US$ 2.5 billion, on a growing trend), Germany, Poland (growing), France, Spain, South Korea and Canada.  

The upholstered furniture market in the United Kingdom is opening rapidly to imports. The CSIL matrix of international trade flows shows that the bulk of upholstered furniture exports originates in Italy, Poland, China, Germany, Canada and Belgium and flow to the US, Germany, the United Kingdom, France, Japan and Switzerland.  

According to the CSIL Report "The world market for upholstered furniture" Edition 2004, in many large, mature markets upholstered furniture imports will continue to grow faster than consumption. This is forecast to occur in the United States, Germany, France and the United Kingdom. This is due to cost reasons and to the evolution of consumer tastes, combined the with responsiveness of foreign suppliers to new demands in terms of design, variety of coverings, delivery times.  

Imports of upholstered furniture between 1997 and 2003 grew steadily in the United Kingdom. The opening of the North American and British markets to foreign upholstered furniture is a major market restructuring phenomenon and this is likely to be the main engine for growth of international trade in upholstered furniture over the next few years.  

Consumption Patterns 

The United Kingdom is the third largest consumer of furniture in Europe after Germany and Italy with a share of 13.5%. Consumption amounts to more than Euro 10 billion, 38% of which is satisfied by imports. 

According to a recent DTI survey, in the UK, all age groups of men have more spending power than women, especially in the group of couples with children. Single mothers with children have the most disposable income of women, while female pensioners in a couple account for the lowest disposable income of women. Presently, the "seniors market" seems to be a rather weak group for UK retailers to target.  

The consumer spending boom generated this year by the European Football Championships "Euro 2004" is expected to contribute to a slight slowdown in furniture consumption during the second part of the year, since people will now have less money to spend on durable goods.  

Distribution patterns 

Since the end of the 1980's the dominant trend in the United Kingdom has been the shift in furniture distribution from the High Street stores to stores on the outskirts of cities. The number of companies operating in the UK furniture distribution sector has fallen in recent years: the number of sales outlets was roughly 15,500 in 1990 and had dropped to 12,200 in 2000. Some 12,000 sales outlets remained in 2003. Closures affected both independent retailers and chains.  

The main feature of furniture distribution in the United Kingdom is the significant presence of non-specialist channels that control a combined share of an estimated 26% of the market. Leading players in this channel are the non-specialist department stores with a share of 15%, split between discount and department stores.  The other non-specialist channels are mail order companies which account for a 6% share.  This is followed by DIY stores which claim a 5% market share.  

Large scale specialist distribution accounts about  30% of the market and here the short  chains play an important role. The market share of large scale distributors has shown healthy growth over recent years.  

Independent sales outlets account for a sizeable 32% market share, buying associations only account for 4% of turnover, and direct sales and builders' merchants around 6%.  

According to a study of the furniture sector conducted by Mintel International Group, overall specialist distributors tend to have been more successful, while general furniture distributors have had a more difficult time in recent years. 

Analysts report that Department stores will continue to play an important role in furniture distribution, but will find it increasingly difficult to compete with the large out-of-town stores in terms of prices and selection.  

The DIY channel is expected to continue to be important for the kitchen furniture segment, however, the traditional mail order companies are expected to further lose ground.  

Log Prices in the UK

UK Sawnwood Prices  

 

Plywood and MDF in the UK