ITALY –  In the last twenty years, the Ready to Assemble (RTA) furniture industry has developed fast in Europe, in terms of both the industry’s size and the products (support materials, finishing, assembling solutions) and distribution channels (registering a sharp increase in online sales).

According to CSIL, the RTA furniture industry increased by 3% yearly during the period 2016-2021, registering a higher growth rate compared to the performance of the fully assembled furniture production. The weight of the RTA furniture industry increased over time on the whole furniture industry and reached a value exceeding Eur 15 billion.

It is a relatively concentrated segment. The four largest countries in the European market control over 60% of the supply, and the ten largest countries control over 85% (against 80% for the furniture industry). With a production value of over Eur 3 billion, Poland and Germany are the two leading producing countries for RTA furniture, followed by Lithuania and Italy. Over the last twenty years, Eastern Europe eroded market shares to some traditional furniture-producing countries, such as the United Kingdom and France (where some leading RTA furniture manufacturers ceased their activity or moved production outside their country).

Driven by sourcing policies of leading furniture chains and supported by European funds, Eastern Europe developed a large production capacity, particularly in the RTA furniture industry. In the area (mainly in Poland, but also in Lithuania, Slovakia, and Hungary), various Ikea production units and important Ikea suppliers are located.

Ikea has a significant foothold in the Polish market, with close to 10,000 workers employed at 18 production facilities. Currently, Poland is the second largest producing country of Ikea globally – almost 20% of furniture products are made in Poland.

According to CSIL estimates, the top 50 European furniture manufacturers account for around 25% of the total European furniture production. A polarization exists between the furniture giant Ikea and all other furniture manufacturers with much lower market shares. Ikea’s development drives the industry both in terms of production and market trends.