China's furniture industry expected to grow 52% by 2018

Source:companiesandmarkets.com/IHB Add Time:2014-02-01

According to a companiesandmarkets.com report, the Chinese wooden furniture industry will reach a turnover of US$ 63 billion in 2013. This represents an increase of 11,2% over 2012 and an average yearly growth of 16,5% in the last five years. The report says that in 2012, from the overall revenues of China's manufacturing sector, 59% came from wooden furniture.

The Chinese manufacturing sector has boomed in the last 10 years, with China managing to surpass Italy and become the largest furniture exporter in the world. Despite this impressive upward trend, 'the industry's profit is relative low, averaging 5.8% of industry revenue' the report holds. High prices for raw materials combined with relatively low prices of Chinese furniture are some of the reasons for this low profitability. However, this can be compensated in the following years by a rising internal demand and projected higher earnings of the Chinese population.

At the moment, Chinese furniture exports have a share of almost 20% of all industry's turnover, well bellow the 28,2% share registered in 2008.

For the upcoming years, the industry is expected to increase with an average of 8,8% per year, and to achieve a turnover of US$ 96,3 billion by 2018.