The entity also provides an overview of the accumulated results in the last five years and projections for the sector
Amid large losses and changes both in our personal and business’ lives, the furniture sector was, without a doubt, one of the most influenced by social isolation, which required quick and agile responses to situations never experienced in our generation before. While the human aspect was and continues to be our greatest asset and concern, unavoidable, however, are questions about the future of the furniture industry in this new and welcome scenario that is being built in the process of “returning to normality”.
Despite still being a very unusual year, the behavior and results of the market in 2021 pave the way for us to understand a little better about what we can expect from the sector, the companies and the Brazilian economy in the post-pandemic scenario.
In order to comprehend the current moment, outlining perspectives and opportunities for the coming years, ABIMÓVEL – The Brazilian Furniture Manufacturers Association shares at first hand the overall balance for the year with preliminary data from the Brazilian furniture and mattresses industry in 2021, as well as projections for the sector until 2023, based on indicators collected exclusively by the IEMI – Market Intelligence from official sources.
An eye on the past with a focus on the future
To build up our timeline, however, we first need to look quickly into the past. The furniture industry ended 2020 with a 1.35% drop in the volume of parts produced compared to 2019 (pre-pandemic). A subliminal number, which actually revealed a surprising recovery when we recall the panorama of abrupt drops, which went beyond 60%, experienced between March and May of last year. With the sector achieving a phenomenal recovery from the boom in furniture demand in the second half of 2020.
In nominal values, by the way, the production of furniture and mattresses in Brazil reached more than BRL 71.4 million last year, an expansion of 2.2% in revenue over 2019. Therefore, representing a gain, despite the decline in the number of produced parts.
In this historic scenario for the sector, in which consumers turned their attention to the home and furniture during social isolation, expectations for 2021 were uncertain, especially given the maladjustments caused by the pandemic in economies and supply chains. With the most significant problems among the furniture and mattress industries being related to scarcity and excessive increases in the prices of raw materials and inputs, in addition to serious logistical barriers (sea and air).
Issues that added to the influence of exchange variation (high US dollar and devaluation of the Brazilian real), as well as the return of inflation in the country, further increased production prices and, consequently, the final value of our products at retail. Such factors raised “warning signs” in relation to the readjustment of the consumers wages and their purchasing power, signaling a variation in the deceleration of demand for furniture this year.
Overall balance of the furniture industry shows growth in 2021
In fact, we observed numbers that were less heated throughout 2021. On the other hand, however, those numbers were distributed in a more stable way over the months, different from last year. In this way, the Brazilian furniture and mattresses industry not only recovered the lost volume, but also presented a 2.71% increase in the volume of parts produced this year in relation to 2020: 443.23 million pieces manufactured in total.
In revenue, the increase was approximately 9.28%, totaling more than BRL 78 million. Results not only superior to last year, but also to those of previous years, in the period from 2016 to 2020. Thus, demonstrating the focus, positioning and continuity of the furniture industry’s work throughout this year.
Jobs and investments on the factory floor
In this scenario, the furniture industry registered a positive balance of job vacancies during the year, positively going against the national economy. According to data collected by IEMI for ABIMÓVEL, employment growth in the furniture industry in Brazil was 2.66% in 2021 compared to 2020.
Results that point to a positive and growing situation, with increased confidence of industrial entrepreneurs in the furniture sector, which, in addition to labor, has been investing heavily in the improvement and modernization of industrial parks. Investments in the sector jumped from BRL 1.23 million in 2019 to more than BRL 2.16 million in 2021. Compared to last year, when around BRL 785 thousand were invested — one of the worst performances of the indicator in the historical series — the leap is even greater: +176%.
Brazilian furniture and mattresses exports grow more than 75% in 2021
This modernization and diversification of the Brazilian industry has impacts not only on domestic consumption, but also puts our companies and products in synergy with the global market. Among all the positive results of 2021, the evolution of exports in the furniture sector, which accumulated a growth of 547.46% in the last five years, is surprising.
Proving, in such a way, a historical evolution in the furniture trade balance, which grew 75.88% in volume in 2021 over 2020. In revenue, the increase was 48.36%, totaling US$ 932 million (FOB) in furniture and mattresses exported this year. This pace, according to projections released by ABIMÓVEL, should continue over the next two years, with expectations of 6.05% and 8.65% growth in the volume of furniture and mattresses to be exported in 2022 and 2023, respectively.
Projections for the furniture industry
The scenario of confidence in the domestic market and new opportunities in the global market point to the maintenance of good numbers in the sector in the next two years. Although a large part of consumers’ financial resources are channeled again towards travel, leisure and other services, the definitive adoption of the home office or even hybrid work, as well as the good moment that civil construction is going through in the country, in addition, of course, to the exports, bring interesting possibilities for the entire furniture chain.
In this sense, the estimation is that the production volume of furniture and mattresses will continue to grow: +2.11% in 2022 and +2.75% in 2023. This should also positively impact the volume of employment in the sector, with projected growth of 2.05% in the next year and 2.88% in the following year.
When it comes to investments, however, restabilization is estimated given the high amounts applied in 2021. With the factories being expanded in recent years to a period of high production and performance from 2022 beyond.
FURNITURE: OUR BUSINESS!
The Brazilian Furniture Manufacturers Association – ABIMÓVEL
Press Office: Thais Laurindo | press@abimovel.com | +55 14 99857-0108
