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IMPORT GROWS

By IEMI – Institute of Studie s and Industrial Marketing

Brazil’s growth in furniture exports is marginal but imports are phenomenal. An overview.

THE FURNITURE INDUSTRY in Brazil commands great economic importance and social impact, with a production of 354 million pieces per year, bringing together more than 14,000 companies and generating over 222,000 jobs, equivalent to 2.2 percent of the total number of employees in the country’s industrial production.

In 2008, Brazil accounted for 3.1 percent of the world’s furniture production (US $11 billion). It consumes about 2.9 percent (US $10.44 billion) of the world’s total furniture.

In terms of foreign trade however, Brazil’s participation in the world market is still small. Its import and export proportions to the world total are just 0.4 percent (US $407 million) and 0.9 percent (US $968 million) respectively (2008 figures).

Exports in 2008 reached US $968 million, a growth of only 2.3 percent from 2006. Imports grew more aggressively by 195 percent to US $406 million.

Imports

From 2004 to 2008, Brazil imports grew 128.8 percent in volume and 195.4 percent in value. The bigger growth in value signifies an increase in the average price of imported furniture. Brazil’s growing purchasing power, thanks to the rising currency, demands for higher added value imports from the US and Italy, as well as Asia.

Brazilian imports are dominated by seats, which represent 84 percent of the total import values in 2008, followed by plastic furniture with seven percent and metal furniture with six percent. Wooden furniture, our main market segment, however, hit less than two percent.

Exports

Furniture exports in 2008 dropped by 1.8 percent from 2007 but when compared with 2004, there was a growth of 2.3 percent. In terms of volume though, exports fell 27 percent in 2008 from 2004. Wooden furniture exports make up the bulk of the total. In 2008, this segment represented 68.7 percent of total furniture exports, including furniture and seats. Exports mostly come out of manufacturers in Santa Catarina and Rio Grande do Sul, that together contributed to 62 percent of the country’s total export value in 2008.

2009 Projections

The number of furniture companies in operation is expected to remain stable, despite a small reduction in the number of jobs generated by the sector.

For 2009, it is estimated that the furniture market could retract, both in production and import/exports. Consumption will reduce as well.


































































Besides being an important tool for the dissemination of the profile and potential of this industry, the report provides an analysis of the sector, with data on the world and national scene of this market.

This publication is edited and surveys within conducted annually by IEMI, a company for market studies and research, which regularly monitors key national sectors, among them is the furniture industry.

The putting together of the report is supported by key industry representatives, among them are ABIMOVEL, MOVERGS, and the CENTRO GESTOR DE INOVACAO MOVELEIRO – CGI, as well as key partners such as REVISTA MOBILE, whose partnership with IEMI aims to provide furniture companies with data and information to the foundation of business management.