Furniture and lighting are among the leading Made in Italy sectors. Thanks to strong post-Covid growth, according to the original estimates of the Study and Research Directorate, Italian home design sales approached 32 billion euros, confirming it as the leading production hub in the European Union, ahead of Germany. Indeed, the final figures for 2022 confirmed significant growth, particularly for furniture, thanks to consumers’ focus on the home environment both in Italy and on international markets, with exports growing by 13,4 percent for furniture and 8,5 percent for appliances and lamps. Prominent in this regard is the extraordinary growth of sales in the United States (+24,9 percent for furniture and +27,7 percent for equipment and chandeliers), which reached 1,9 billion euros in 2022 (382 million more than in 2021). Successes in the U.S. in recent years have led Italian companies to gain share in U.S. imports, ranking seventh and ninth for furniture and lighting, respectively.
Despite the strong critical issues related to the increase in raw materials, both energy and non-energy (wood, glass, plastics, metals, etc.), companies in the sector are estimated to have preserved a good level of margins, especially for larger operators. The forecast scenario for 2023 and 2024 sees a slowdown in the growth of furniture and lighting, partly physiological after the boom of the last two years. In the domestic market, consumption will be adversely affected by the impact of energy costs on household disposable income as the cushion of extra-savings created during the pandemic and the boost created by the dynamics of building renovations and the housing market are exhausted. A driving role in the growth of furniture and lighting will be given by the excellent international positioning where, in the face of a generally slowing context, there will be no shortage of growth opportunities, particularly in China (where made in Italy products for the home have gained share over imports, which are still very limited), expected to accelerate, and in other Asian countries, such as Korea. In this context, it becomes even more significant to focus on energy efficiency of production processes, “green” investments, such as those related to the reduction or recovery of waste in a circular perspective, digitalization, with further strengthening of online presence (e-commerce, digital marketing etc.) and innovation. Analysis of the balance sheets of a sample of furniture and lighting companies shows that those companies that have focused more on innovation, quality, environmental sustainability and marketing have performed better in terms of profitability. A key role in the path of competitive strengthening will be played by design, where Italy enjoys an excellent international reputation, which can make a crucial contribution especially in achieving greater environmental sustainability of products (all data are from Intesa Sanpaolo banking group).
