Outlook of the furniture manufacturing market in Serbia

According to Technavio’s market research analyst, the Serbian furniture manufacturing market will grow at a moderate CAGR of over 4% by 2020. Factors such as the strong demand from export markets will aid in this market’s growth during the forecast period. Serbia is signatory to free trade agreements, such as the CEFTA, and agreements with the EU and Russia. As a result, manufacturers in the furniture manufacturing market space in Serbia have gained from such agreements as they have facilitated an increase in export volumes. For instance, there is a large and growing preference for Serbian furniture in Russia because of their high quality and cost-effectiveness. Apart from entering into joint ventures with Russian manufacturers, Serbian manufacturers are also focusing on providing sub-contracting services to clients in Russia to enhance sales. The demand from Russia is also driven by the fact that a number of Serbian construction companies currently operate in Russia and source products, such as furniture, from manufacturers in Serbia.

In this region, the recent restructuring of business activities will also aid in spurring this market’s growth over the next four years. It has been observed that many manufacturers in the Serbian furniture manufacturing market are focusing on strategies to enhance visibility, sales, and exports of their products. Key companies such as Simpo are focusing on restructuring their business model to a demand-based model. The company aims to collaborate closely with interested buyers and satisfy market demand by manufacturing products according to demand, as opposed to producing furniture and then pushing their sales in the market. Utilizing this strategy, the company also aims to reduce the burden of unsold inventory. 

Competitive landscape and key vendors

In the past one year, the furniture manufacturing market in Serbia employed over 9,000 people. The market consists of over 600 manufacturers, of which only five are large players that employ more than 250 people; over 30 are medium-sized companies employing 50-249 people, and the remaining are small and micro-sized manufacturers. Due to the availability of raw materials and low cost of labor, Serbian manufacturers are able to produce high-quality furniture in a cost-effective manner.

Key manufacturers in this market are -

• Atlas
• Casa Italia
• Catra home fashion
• Cimo Company
• Dunav Apatin
• Ergomade
• Extraform
• Forma Ideale
• HK Andrijasevic
• Jela Jagodina
• Kedar
• Linea Milanovic
• Mahagoni Deco Fabrika
• Matis
• Philip & Co Filipovic
• Promenada
• Rezbos
• Schlarafia
• SCS.plus Knjazevac
• Simpo
• Super Company

Segmentation by product and analysis of the furniture manufacturing market in Serbia

• Office and shop furniture
• Kitchen furniture
• Mattresses
• Other furniture (desk chairs, deck chairs, headboards of metal beds, outdoor metal furniture, and chest of drawers)

During 2015, the kitchen furniture segment dominated this market and accounted for more than 21% of the total market share. The kitchen furniture market in Serbia is expected to grow at a rapid pace during the forecast period due to the increasing demand from export markets like Germany. Manufacturers in this market space are also focusing on manufacturing products that comply with EU standards as it will help them to access export markets in the EU, such as Austria.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the furniture manufacturing market in Serbia?
• What are the key market trends impacting the growth of the furniture manufacturing market in Serbia?
• What are the challenges to market growth?
• Who are the key vendors in the furniture manufacturing market in Serbia?
• What are the market opportunities and threats faced by the vendors in the furniture manufacturing market in Serbia?
• Trending factors influencing the market shares of Serbia.
• What are the key outcomes of the five forces analysis of the furniture manufacturing market in Serbia?

Technavio also offers customization on reports based on specific client requirement.

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