This report provides a market overview of Poland’s furniture sector through end-2013 and summarizes corporate news for firms including Black Red White, Forte, Ikea, and Nowy Styl. (Most of these firms also have a presence in Ukraine, Sweden, and throughout Eastern Europe). The report also highlights export trends, particularly to Germany and Russia.

In 2012 and 2013 the Polish furniture sector continued to face difficulties related to shrinking external and domestic demand in the context of the global economic crisis. As furniture manufacturers started downsizing production and restructured business in order to adjust to diminishing demand, furniture output volume unsurprisingly declined on an annual basis in 2012 and continued downward from January to October 2013. Gross furniture output (including sales of companies to other companies plus sales to final consumers) also dropped year on year in value terms in 2012, but is expected to have picked up during 2013 enough to top the record 2011 value in 2014.

The Polish furniture sector performed above the EU average in 2012 and the country maintained its leading position among European furniture exporters and producers. Poland accounted for 8.1% share of EU furniture production value in 2012 (compared to 6.3% share back in 2008) and will predictably continue gaining ground in this regard. The value of furniture exports is also projected to reach record levels in 2013, at nearly EUR 6.9bn, according to market forecasts. While the EU still accounts for most of Poland’s furniture exports, deliveries to non-EU countries are expected to exceed EUR 1bn in 2013 for the first time ever.

Key Points:

• In corporate news, furniture manufacturer and distributor Black Red White opened its 75th store in Zamosc, Lublin province. Furniture producer, retailer and wholesaler Forte S.A plans to further expand abroad and diversify its export market beyond Germany. Both Black Red White and Forte are also present in or export to the Ukraine and around Eastern Europe.

• Sweden’s IKEA will continue investing in Poland and plans to open an online store. Polish office furniture producer Nowy Styl acquired its German counterpart Rohde & Grahl.

• Germany accounts for 39% of Poland’s furniture exports, with France and the United States trailing far behind in second and third place. However, exports to Russia (now the ninth largest export market) are currently growing at a double-digit pace and Russia should enter the top five export destinations in the near future.