The Future of Interior Products in Italy to 2015: Eco-Friendly Home Improvement Products to Drive Demand

15 Aug 2011 • by Natalie Aster

The Italian interior products industry struggled to stay afloat due to the numerous hurdles faced during the review period. The industry lost price competitiveness both in the domestic and global markets due to a stronger euro, especially in 2008, and cheaper imports from China. Further, factors such as an aging population, low disposable income and smaller households made growth in the sales of interior products stagnant. However, domestic companies that were cost competitive and had an established brand name experienced steady growth. Italian consumers have lost confidence due to the government's austerity measures, which have made households more pessimistic about their finances and directly impacted the sales of discretionary items such as interior products. Moreover, employment growth in Italy is slowing down, and the level of employment, as a share of the working-age population, is substantially below that in most other European countries, affecting new home sales and sales of interior products. Domestic political instability continues to distract the Italian government from implementing much-needed structural economic and fiscal reforms. This has affected the government’s expenditure on social sectors such as healthcare and education, some of the key end users for interior products. Moreover, Italian consumers have lower awareness of environmental issues and energy efficient products than other Europeans. They have been slow in adopting energy saving technology and their total energy intensity has decreased much more slowly than in the European Union (EU), affecting fresh demand in sectors such as lighting.

The report “The Future of Interior Products in Italy to 2015: Eco-Friendly Home Improvement Products to Drive Demand” by Worlds Market Intelligence provides detailed market, category and company-specific insights into the operating environment for interior products manufacturers and retailers. It is designed to provide a broad understanding of the interior products industry and specific detail on the performance of the key product categories. The report provides an indispensable source of market size, distribution and end-user segmentation analysis covering the Italian interior products industry, including product manufacturers, retailers, interior designers, raw material suppliers and industry analysts.

Report Details:

The Future of Interior Products in Italy to 2015: Eco-Friendly Home Improvement Products to Drive Demand

Published: August, 2011
Pages: 387
Price: US$ 4,950.00

Report Sample Abstract

Interior Products Demand – Market Size

The Italian economy has been the one of the worst performers in the EU with GDP growth ranged from XX% in 2001 to -XX% in 2010. After the global financial crisis, the recovery in the economy was weak due to low domestic consumption. In 2010, the Italian interior products industry was valued at US$XX billion. The residential market was the largest end-user segment with a demand of US$XX billion in 2010. In spite of the downturn in the industry, the bedroom products, fabrics and soft furnishings, and kitchen products categories continued to grow in the review period. A typical Italian consumer places a premium on product design. In fact, the concept of ‘designer furniture’ was created by the Italian industry to cater to this need. The industry is known for the concept of ‘industry clusters’ that help it to collaborate on creative concepts. In 2008, average Italian households spent EURXX annually on buying furniture for their homes. However, years of political uncertainty and a gloomy economic scenario has dampened consumer spirits. High levels of capital investment during XXXX–XXXX have slowed down to a trickle. Today, XX% of Italians live in owned houses, one of the highest homeownership rates in Europe. While this factor indicates that homeowners need to regularly renovate their existing houses, it also indicates that new housing starts will be less, adversely affecting the growth of the interior products industry. Further, Italian manufacturers need to compete against cheaper imports from China and Eastern Europe which are threatening their growth.

Interior Products Demand – Market Forecast

The key growth drivers of the Italian interior products industry during the forecast period include a significant increase in the number of two-member households and rising consumer demand for energy efficient and sustainable products. The new EU 2020 targets for improving energy efficiency have forced the Italian government to undertake a period of strong growth in expenditure on energy efficient home improvements till 2014. However, factors such as the disparity between Italy?s industrialized northern and agricultural southern regions, aging demographics, political instability, the lack of market reforms and the rising cost of commodities will adversely affect the growth of the industry in the forecast period. The competitiveness of the Italian interior products industry is a major concern, with sluggish growth expected during the forecast period due to the country?s weak economic performance, modest income growth and weak population growth. However, the industry is expected to achieve growth primarily from export markets. The US and EU account for two-thirds of the total Italian interior products exports. Russia and Eastern Europe will be the markets with highest growth potential for Italian products. With the continuing political instability due to the series of scandals in the Silvio Berlusconi government, the Italian economy is attracting less interest from foreign investors. The high unemployment rate, low household savings and the rising cost of commodities have forced Italian consumers to restrain from spending. In this scenario, the interior products industry is expected to grow to be worth US$XX billion by the end of 2015, the result of a CAGR of XX% over the forecast period.

Interior Products Market Size, Total

The Italian interior products market valued EURXX million (US$XX million) in 2010, an increase of XX% over 2009. The Italian interior products industry was adversely hit by the global crisis in 2008 when demand fell by -XX%. In the review period, the market size declined at a CAGR of -XX%, indicating that the industry struggled to stay afloat amidst the weak global economic conditions. However, when measured in US dollars, the decline in the market size was lower at a CAGR of -XX%, which was due to the strengthening euro against the US dollar. The euro strengthened by XX% against the US dollar during the review period. Although the Italian economy experienced a severe slowdown, the decline in the interior products industry was low due to growth in the domestic construction industry.

In the forecast period, demand for interior products in Italy is expected to rise gradually from EURXX million (US$XX million) in 2010 to EURXX million (US$XX million) by 2015. The Italian market is expected to be stagnant in the forecast period mainly due to the high unemployment rate, uncertain economic conditions and fears of a double-dip recession holding back major private sector investment. Demand for interior products in Italy is expected to achieve a CAGR of XX% in the forecast period.



Interior Products Demand by Product Category

In 2010, the furnishings product segment was the largest category with a market share of XX%, valued at EURXX million (US$XX million). It was closely followed by kitchen products with a value of EURXX million (US$XX million). The Italian construction industry is the primary growth driver for the interior products industry. While the decline in the industry has not been significant, it was severe for products categories such as window coverings and treatments, bathroom products, office furniture products and tableware and decorative products.

In the forecast period, furnishings will retain its leading position in terms of demand in the Italian interior products industry. Demand for furnishings is expected to increase to EURXX million (US$XX million) by 2015, recording a CAGR of XX%. Kitchen products is predicted to be the second-largest category, with demand of EURXX million (US$XX million) in 2015. The wallcoverings category will also retain its third position, valued at EURXX million (US$XX million) in 2015.

More information can be found in the report “The Future of Interior Products in Italy to 2015: Eco-Friendly Home Improvement Products to Drive Demand” by Worlds Market Intelligence.

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