Market Research Report
Brazil Furniture Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||937907|
|Published||Content info||150 Pages
Delivery time: 2-3 business days
|Brazil Furniture Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 150 Pages||
The Brazil furniture market is expected to witness strong growth during the forecast period, owing to factors, such as rising disposable income, increasing the number of households in the country, and increasing spend on home improvement and furnishing products.
Brazil's furniture industry has evolved recently, owing to factors such as the opening of the economy to foreign trade, the expansion of the domestic market, and new consumers gaining access to the market. The low cost of reforestation wood represents another important competitive advantage for the furniture industry in Brazil.
In the furniture market in Brazil, sales of furniture in the retail trade increased by nearly 7.3% in 2018. The average price of furniture also witnessed an increase of 0.12% compared to 2018. The country is also witnessing a decline in imports of furniture products, as the production capacity of the country is significantly increasing.
Among the leading destinations for furniture exported by Brazil are the United States and the United Kingdom, followed by South American countries such as Uruguay, Peru, Chile, Paraguay, Argentina, and Bolivia. Latin America, which includes Central America, the Caribbean, and Mexico, accounts for 39.3% of Brazilian exports.
Bedroom Furniture is the Largest Segment Among Home Furniture Products
Brazil is witnessing an increased demand for home furniture products such as bedrooms and living room furniture products. Home furniture demand is fundamentally increasing from replacement and refreshing of outdated or mal-functioning furniture with furniture that is novel or more functional.
As macroeconomic factors, such as increased spending power and rationality among consumers, persist, the consumers are conditioning their spending on indoor furniture to bring a new appeal to their houses. The Brazilians are staunch consumers of bedroom furniture, and thus, the production for this segment is also the highest. Other widely produced furniture products include office furniture, kitchen furniture, and other furniture.
Increased Construction Activity
Brazil's economy is witnessing a significant expansion, especially in the residential real estate segment. The residential segment is witnessing the highest growth in the real estate sector in-country when compared to all other segments. The housing market showed symptoms of improvement and witnessed a 30% increase in the purchase and construction of real estate in 2019 compared to 2018. Residential property purchases increased by almost 10% in 2019.
Medium and high-end developments are those that have led to the heating of the housing market in 2019. The residential sector largely drives positive construction numbers. The area of infrastructure is expected to improve by 2020, due to advances in sector regulatory frameworks that favor concessions and public-private partnerships. The increase in residential units is expected to fuel the growth of the furniture market as people moving to new households may get new furniture products for their household units.
The Brazil market is highly competitive and fragmented with the presence of players such as Bartira, Industrias Arteb SA. And Temasa Industries De M Veis Ltd. Organized players have been successful due to their high budget marketing campaigns and promotions, which largely include the price reduction on MRP and high quality being offered at a low cost. Some of the major competition parameters include a number of stores, pricing, and type of material used in furniture, product SKUs, online presence/distribution channel, and others.
With growing competition from imported goods, Brazilian furniture manufacturers are investing heavily to improve their production processes in order to offer higher quality products. To achieve this goal, manufacturers are receiving support from the federal government, which is cutting import duties on machinery and equipment.