MARKET INTELLIGENCE

The European furniture industry represents a substantial sector, with ready-to-assemble (RTA) furniture carving out a significant portion, estimated by CSIL at EUR 15.5 billion, nearly 20% of the total. This segment has demonstrated a healthy trajectory, with an average yearly growth of close to 2% between 2019 and 2024, outperforming the fully assembled furniture sector.

The RTA furniture industry in Europe exhibits a considerable level of concentration in terms of supply. The four largest countries (Poland, Germany, Lithuania, and Italy) control over 60% of the supply, highlighting a more consolidated landscape compared to the broader furniture industry.

Over the past two decades, Eastern European countries have progressively gained market share at the expense of traditional powerhouses like the UK and France (where some leading RTA furniture manufacturers ceased their activity or moved production outside their country), driven by the sourcing strategies of major furniture chains, supported by European funds, and the robust presence of the semi-finished wood panels industry.

The competitive system within the RTA sector is even more concentrated than the overall furniture market, dominated by large companies. The top 50 European RTA furniture manufacturers represent an estimated half of the total RTA production, a share that has steadily increased over recent years. Nevertheless, there is a polarization existing between the undisputed market leader Ikea on the one hand and all the other furniture manufacturers with much lower percentage market shares (around 2-1%).

Interestingly, IKEA sources approximately 90% of its products from over 800 external suppliers, with key European suppliers including Poland, Italy, Lithuania, Germany, and Sweden. IKEA Industry’s core focus remains on wood-based furniture, managed across its 40 production units. Notably, there’s been a recent shift in IKEA’s key suppliers, with Poland now being the largest, followed by Lithuania, and Sweden and China each providing 10%. The reliance on wood from Russia and Belarus has significantly decreased.

THE RTA / Flat pack Furniture MARKET in Europe

The apparent consumption of RTA furniture in Europe nears EUR 20 billion. However, forecasts for 2025 suggest a slight decline in consumption. Nevertheless, a modest recovery is anticipated for 2026. 

EUROPE. CONSUMPTION OF RTA FURNITURE, 2019-2024. EUR Million and % changes

Interestingly, the European RTA furniture market is less concentrated in terms of consumption compared to production, with the top four markets (Germany, the UK, France, and Italy) accounting for about half of the total.

Non-specialist channels, including DIY retailers, play a considerably larger role in RTA furniture distribution than in other furniture segments. The e-commerce channel has also become a vital sales avenue, holding a market share roughly five percentage points higher than in the overall furniture market. While organised specialist distribution remains dominant, wholesalers also play a significant role, particularly in Germany. In 2024, organised specialist distribution accounted for the largest share, followed by e-commerce, DIY, and non-specialised distribution. IKEA stands out as the leading retailer for RTA furniture in Europe, holding approximately 40% of the market.

Consumer preferences are also evolving. Younger generations, particularly Gen Z, are showing increasing interest in flexible furniture solutions. Their preference for accessible designs, easy transport, and simple assembly has encouraged the development of semi-assembled RTA products, which offer a better user experience while retaining the key logistical and cost advantages of flat-pack furniture.

INDUSTRY’S TRENDS

The European RTA furniture sector is undergoing significant shifts. Consolidation through mergers and acquisitions is reshaping the competitive landscape, enabling companies to strengthen their market positions, expand their product offerings, and achieve economies of scale.

Recent examples include Orlando Capital V’s acquisition of Welle Holding and Pervanovo Invest AB’s subsidiary, Valinge Croatia, acquisition of the Croatian furniture maker Spin Valis, supporting large-scale furniture production using Valinge’s click technology, and boosting oak material availability. Simultaneously, the industry has witnessed market exits due to financial instability, particularly in Germany, with companies like Vivonio, which has undertaken extensive restructuring measures, and MWS Westfalen Werke ceasing operations. To address rising production costs and enhance efficiency, companies are increasingly investing in automation and technological advancements. Furthermore, vertical integration is emerging as a crucial strategy for ensuring supply chain stability and cost control.

Leading vertically integrated RTA manufacturers include IKEA Industry, Forte, and SBA Baldu. A trend towards backward integration is also observable, with particleboard production moving closer to furniture manufacturing sites. IKEA’s acquisition of forests in Romania and the Baltic exemplifies this move towards greater control over raw material sourcing.

Finally, environmental concerns are driving companies to adopt sustainable production methods and optimize material usage. A significant number of companies are already using recycled materials in furniture production, reducing packaging impact and emphasizing circular product life cycles. They are designing products for a longer lifespan with the availability of spare parts, offering repair, refurbishment, and take-back services, which help extend product life and reduce waste.

Overall, while challenges such as pricing and performance consistency remain, companies are committed to advancing sustainability through material innovation, circular design principles, and packaging optimization.

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CSIL’s report ‘The European market for RTA Furniture’ offers a detailed analysis of the ready-to-assemble (RTA)/flat pack furniture sector in Europe, with a focus on 15 countries. Find out more at https://www.worldfurnitureonline.com/report/the-european-market-for-rta-furniture

 

Source: CSIL World Furniture Magazine #06, June 2025

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