Production and sale of furniture in Russia

2024: The first furniture velour factory in Russia was launched. ₽5 billion invested in it

In the Volodarsky municipal district of the Nizhny Novgorod region in October 2024, the first furniture velour factory in Russia was launched. The total investment in the project amounted to ₽5 billion. The presentation of the new production took place in the format of video conferencing with the participation of Russian President Vladimir Putin. Read more here

2023

Increase in sales of furniture fittings by 10.3% to 115 thousand tons,

The Russian furniture furniture market is showing steady growth, despite the economic challenges of recent years. This became known in October 2024. At the end of 2023, sales reached 115.0 thousand tons, which is 10.3% more than in 2023.

According to RBC in October 2024, the furniture furniture market in Russia has experienced several stages of development in recent years. In 2020, sales volumes decreased to 101.1 thousand tons, which was caused by the economic crisis amid the COVID-19 pandemic and a decrease in import supplies.

2021 was marked by an unexpected increase of 13.4%, due to the restoration of imports and an increase in domestic production. However, in 2022, the market again faced difficulties due to currency fluctuations, logistical problems and the departure of a major player, IKEA which led to a decrease in market volume by 9.0%.

The recovery in 2023 is due to several factors. First of all, the supply chains stabilized, which made it possible to establish the supply of materials and components. In addition, manufacturers adapted to new economic conditions, which contributed to the growth of domestic production.

An important role in the growth of the market was played by an increase in domestic demand for furniture. This was due to an improvement in the purchasing power of the population and a general recovery in economic activity in the country.

Industry experts point out that the furniture hardware market has shown amazing resilience and ability to recover from major economic shocks. This indicates the potential for further growth and development of the industry.

Analysts predict that in the coming years the furniture furniture market in Russia will continue to grow. It is expected that factors such as the development of domestic production, import substitution and the possible restoration of import supplies from new partner countries will contribute to this.^[1]

4-Year Bathroom Furniture Sales Up 49% to 2.1M

In 2019-2023, sales of bathroom furniture in Russia rose by 49%, reaching 2.1 million units. Such a significant increase is primarily due to an increase in the number of new buildings commissioned. This is stated in the materials of BusinesStat, published on July 10, 2024.

The review looks at bathroom furniture dominated by wood and/or wood material parts. These are, in particular, products from an array of natural wood (oak, beech, larch), from a laminated wood chip board (chipboard) and from MDF (fine wood fraction). Statistics cover pedestals (floor, on legs, hinged, with a sink and without), cabinets (floor, on legs, hinged, case cabinets, with mirrored and ordinary doors) and racks. One of the key market players is named Furniture Factory Maria LLC, SKL LLC, PC Angstrem LLC, VannVanych LLC and Borovichi-Furniture CJSC.

According to estimates, in 2019, about 1.4 million units of bathroom furniture were sold in Russia. A year later, sales rose 21.2% to 1.7 million units. In 2021, an increase of another 24.8% was recorded with a final result of 2.1 million units.

In 2022, there was a decrease of 2.7% - to 2.06 million pieces of bathroom furniture. This happened due to the deteriorating geopolitical situation, which provoked the departure from Russia of large foreign brands such as IKEA. Sales fell amid stagnant household incomes and rising loan rates. But already in 2023, the decline was replaced by an increase of 1.3%. The recovery in sales is due to an increase in the number of new buildings commissioned. According to the Unified Housing Information System, compared to 2022, the number of houses under construction in 2023 increased by 9.9%, the volume of living space increased by 7.4%, the number of apartments - by 8.1%.^[2]

The largest furniture manufacturers in Russia are named

In 2023, the volume of furniture production in Russia reached 438 billion rubles. This is almost a quarter (by 23%) more than in the previous year, when the figure was 356 billion rubles. In physical terms, 66.7 million units of goods were manufactured - plus 33% compared to 2022, which is a record value for the domestic industry since 2005. Such data are given in the study of the audit and consulting group "Business Profile," the results of which were published on April 15, 2024.

The survey said the strong performance of 2023 is largely due to the commissioning of residential new buildings and, as a result, an increase in demand for furniture. Moreover, some of the new premises are equipped "turnkey," which also allows you to keep the demand for products at a relatively high level. In addition, there is a demand for furniture for the premises of state structures.

According to data for 2022, almost a third of furniture production in Russia falls on six regions: Moscow (12%), Penza (9.2%), Vladimirskaya (8.1%), Nizhny Novgorod (4.1%), Saratov (3.9%) regions and Krasnodar Territory (4%). And at the end of 2023, the Penza region became the main furniture region of Russia, where over 226 furniture factories operate.

In general, as of 2023, over 14 thousand furniture companies operate in the Russian Federation. The largest enterprise is Ascona-Vek LLC with revenue of approximately 20.4 billion rubles. The company specializes in the production of mattresses and related sleep products and is considered one of the largest companies in the sector in Eastern Europe. In second place in the ranking is Litwood LLC with a turnover of 11.3 billion rubles in 2023: the company produces mainly soft furniture: sofas and sofa beds (straight and corner), sofas with canapés, beds, armchairs, sofas, poufs. Closes the top three manufacturer of soft furniture LLC "Live Sofas" with revenue of 1.6 billion rubles.^[3]

Office furniture production growth by 21.3%

In 2023, the production of office furniture in Russia increased by 21.3%, reaching 92 billion rubles. This is evidenced by data from analysts AnalyticResearchGroup (ARG), published in mid-June 2024

According to experts, the growth of the market is due to the departure of foreign producers, state support and active development of the real estate market. According to ARG, the production of office furniture in monetary terms has grown steadily for several years, while in 2017 there was an increase of 66.5%, and in 2021 - by 56.8%. The exception was 2014, when production decreased by 6.2%. The bulk of production is concentrated in the Central Federal District, which accounted for about 48% of total output in 2022. This region is home to major manufacturers such as Burokrat, MK Shatura and PAX Metal.

According to forecasts, in the period from 2024 to 2028, the average annual growth in office furniture production will be 13%, which will allow by 2029 to bring production to 170 billion rubles. - almost twice as much as in 2023. According to experts, government support and expansion of the real estate market have a positive impact on the market.

The Association of Furniture and Woodworking Enterprises (AMDPR) notes that consumer prices for furniture in 2023 increased by 5.6%, while prices of Russian manufacturers increased by 9.6%. Office furniture made of metal (+ 16.9%) and retail furniture (+ 13.1%) have risen in price especially strongly. Despite rising prices, furniture remains a sought-after item thanks to slower increases in value compared to other items.

By the end of 2023, more than 14 thousand furniture companies operated in Russia. According to a survey of the Anketolog service conducted in early 2023, 79% of respondents believe that domestic manufacturers have successfully replaced the IKEA brand that has left the market.^[4]

Furniture production growth by 21% to 455.1 billion rubles

The volume of furniture production in Russia in 2023 reached 455.1 billion rubles, an increase of 12% compared to the previous year. In physical terms, the output of these products increased by 21%, calculated in Roslesinforg, whose data was published on February 7, 2024.

In the materials of the organization, it is noted that against the background of the departure of large Western companies, the number of enterprises within the country producing furniture under their own brand has grown significantly, noted there. At the same time, Western companies that remained in Russia practically abandoned imports and switched to Russian manufacturers.

The volume of furniture production in Russia in 2023 reached 455.1 billion rubles

In the Association of Furniture and Woodworking Enterprises (AMDPR), the volume of furniture production in the Russian Federation at the end of 2023 was estimated at 66.7 million units, which is about 33% more than it was in 2022. In value terms, the growth was about 23% - the volumes increased from 356 to 438 billion rubles, the association calculated.

According to Roslesinforg's estimates, in 2023 the production of cabinets for kitchens, bedrooms, canteens and living rooms in Russia increased by 25% compared to 2022 - to 6.5 million units. The production of coffee tables from wood increased by 20% (to 788.7 thousand pieces), kitchen tables - by 7% (to 1.6 thousand pieces), dining tables - by 3% (to 753 thousand pieces).

The production of sofas with a wooden frame also increased - by 17% to 3 million pieces, mattress foundations with a wooden frame and wooden bedside tables for the bedroom - by 12% to 158.3 thousand pieces and 1.3 million pieces, respectively. At the same time, the production of wooden beds and bedroom cabinets decreased by 5% - up to 2.9 million units and 2 million units, respectively. The production of wooden furniture for hallways in 2023 amounted to 2.2 million units, which is 29% more than a year earlier.^[5]

2022

Sofa sales up 6.9% to 2.75 million

At the end of 2022, 2.75 million sofas were sold in Russia, which is 6.9% more than a year earlier. The situation in this market is devoted to a study that BusinesStat analysts published in December 2023.

According to experts, the rise in sales of sofas in the Russian Federation in 2022 was facilitated by activity in the housing construction market for previously started projects. This spurred sales of finishing materials and furniture items, including sofas. In February-March 2022, there was an increased demand for furniture, when, against the background of the expected rise in prices, the shortage of products, Russians wanted to have time with the arrangement of housing, carry out planned purchases and finish repairs faster, experts say.

They pay attention to the dominance of domestic manufacturers in the Russian sofa market: in 2018-2022. they accounted for more than 90% of sales. Analysts explain this situation both by the presence of a large number of their own furniture production facilities and by the peculiarities of product transportation.

The study by BusinesStat said that in 2022, the decline in import supplies did not significantly affect the dynamics of sales. In addition, the rise in prices for imported products led to a reorientation of buyers to more affordable domestic products. The Russian furniture market presents both large factories and individual entrepreneurs, small production. However, domestic manufacturers depend on the import of components: fittings, chemical components, furniture fabrics.

Analysts add that after passing the acute phase of the COVID-19 pandemic, Russians were actively engaged in the arrangement of their housing. The cost of buying large pieces of furniture, which were previously postponed due to economic uncertainty, increased. The action of preferential mortgages and the maternity capital program stimulated the demand for new housing, which requires furnishing.^[6]

3.8% decline in bed sales to 3.68 million units

In 2022, 3.68 million beds were sold in Russia, which is 3.8% less than the previous year. Such statistics were presented by BusinesStat analysts on November 30, 2023.

As noted in the study, until 2022, the Russian bed market was on the rise. So, in 2022, its volume increased by 27.1%, and in 2021 - by 14.9%. In 2022, "sales were adjusted," experts say. According to them, the effect of the surge in demand for repairs and suburban construction, which took place during the COVID-19 coronavirus pandemic, was exhausted by 2022 and could not support sales at a high level. The record volume of new housing commissioning, which stimulated a significant increase in sales in the finishing materials and furniture markets, kept from a greater reduction in bed sales in 2022. Another factor that kept the bed market from falling in 2022 was a significant increase in demand for domestic metal beds in the public sector, experts explain.

AMDPR General Director Timur Irtuganov, in turn, explained the fall in the Russian furniture market by a decrease in buyer activity: "Many began to postpone the purchase of furniture until the situation in the economy normalizes."

One of the main trends in the Russian bed market in 2022, analysts call the increase in the share of online sales and the strengthening of the role of marketplaces as an important distribution channel. The increase in the share of online commerce in general is typical for many markets, including furniture, the researchers added.

The following companies were named the largest bed manufacturers on the Russian market in BusinesStat:

• "Ascona-Vek";
• «Ormatek»;
• "Murom";
• "Shatura";
• "Lerôme."

The shares of these producers in the published extract from the study were not specified.^[7]

Mattress production growth to 11.9 million units

In 2022, 11.9 million mattresses were manufactured in Russia against 11.7 million pieces a year earlier. In comparison with 2018, the production of these products soared 2.5 times, BusinesStat analysts calculated. Their data was published at the end of October 2023.

As noted in the study, the most significant increase in output was observed in 2020 (52.1%, or 3 million units compared to the level of 2019), which was due to the revival of demand during the pandemic. The Russians sought to ensure comfort and the most optimal conditions for rest at home, cared more about health, and therefore sleep products became one of the most popular during the lockdown. Demand was also supported by the growth of the construction sector. The remote mode of operation made it possible to choose remote locations for living, which stimulated interest in suburban real estate, which required equipping sleeping places with mattresses.

In 2022, the growth rate of mattress production in Russia slowed down, which was caused by difficulties with the import of certain imported components. Thus, in April, Sri Lanka, the main supplier of coconut fiber and natural latex, declared a financial default, and the stability of the supply of these components was threatened. The missing types of raw materials were successfully replaced by domestic analogues, in particular, technical hemp and orthofiber, but it took time to adapt to new conditions. Also, the volume of production was affected by the saturation of the market after the active growth of 2019-2021. As a result, by the end of 2022, the production of mattresses in the Russian Federation increased by only 1.6%. However, the market has shown high crisis resistance, which makes it possible to predict further growth in production and displacement of foreign competitors from the market, the report emphasizes.^[8]

Furniture production in Russia rose by 15% to 356 billion rubles

In 2022, furniture worth 356 billion rubles was manufactured in Russia, which is 15.2% more than a year earlier. This is evidenced by the data of the Russian Association of Furniture and Woodworking Enterprises (AMDPR), which were published in August 2023.

According to experts, in 2022, the volume of furniture production in the Russian Federation in comparison with 2019, when there was no COVID-19 coronavirus pandemic, increased by 58%. The volume of production in physical terms remained at the level of 2021. The largest increase was shown by the segment of furniture made of plastic materials: its production increased in 2022 compared to 2021 by 91%, as well as wooden furniture for offices, the production of which increased by a third. In physical terms, the most increased production of metal beds (+ 55%), kitchen furniture (+ 37%), soft furniture, transformable in bed (+ 22%), experts said.

As noted in the study, anti-Russian sanctions, including the refusal of many manufacturers and suppliers of furniture from "unfriendly" countries to work in the Russian market, contributed to the development of the domestic industry. In 2022, the volume of furniture imports to the country decreased by 40%, but Russian manufacturers quickly occupied this niche, said AMDPR President Alexander Shestakov.

As a result, the departure of the Swedish IKEA did not affect the situation in the domestic market in any way - neither in terms of the range of products presented, nor in terms of furniture prices. IKEA's share as a furniture manufacturer did not exceed 2-3%, while most of the products offered in the stores of the Swedish company were produced in Russia, he said, adding that most consumers reoriented to collections developed by domestic enterprises.[9]

Kitchen furniture sales up 9.1% to 8.69 million units

In 2022, 8.69 million units of kitchen furniture were sold in Russia, which is 9.1% more than a year earlier. The market has continued to grow steadily since at least 2018. Analysts at GuideMarket reported this in August 2023.

According to the researchers, the growth of the market is due to an increase in the volume of Russian production of kitchen furniture. The potential capacity of the kitchen furniture market depends on various factors, including the economic situation, the income level of the population, demographic changes and trends in interior design. Despite changes in these factors, demand for kitchen furniture has remained steady as the kitchen is one of the key spaces in the home, a 2022 study said.

As noted in the Association of Furniture and Woodworking Industry Enterprises of Russia (AMDPR), Russian furniture manufacturers depend on the import of components. According to such indicators as fittings, varnishes and paints, furniture fabrics, PVC films, chemical components, this dependence reaches 90-100%. In 2022, these goods increased significantly in price, logistics became more complicated.

One of the factors in the successful development of the furniture industry in 2022, AMDPR considers the competent pricing policy of the leading players in the Russian market. The timely decline in manufacturers' selling prices for furniture, despite the worsening global economic crisis, helped stabilize the sales situation and support consumer demand, which in turn contributed to an increase in capacity utilization and the stability of enterprises.

Manufacturers' selling prices began to decline in May [2022]. The trend continued, and already at the end of the third quarter, the dynamics of growth in consumer prices for furniture did not exceed inflation. At the end of 2022, consumer prices for furniture increased by 11%, which is one of the lowest indicators in the category of non-food products, "explained Alexander Shestakov, President of AMDPR.[10]

Russian bathroom furniture market shows decline after 25% rise

In 2022, 1.96 million units of bathroom furniture were sold in Russia, which is 7.4% less than a year earlier. The market size decreased after 24.8 percent growth in 2021, according to a study by BusinesStat, excerpts from which were published in mid-July 2023.

According to experts, the rush demand for furniture in early 2022, associated with the announced departure from Russia of a number of large foreign manufacturers, in particular IKEA, was replaced by a fall in the second half of the year. Sales of bathroom furniture declined amid the deterioration of the well-being of Russians and an increase in loan rates.

Domestic furniture dominates the Russian market: the share of imports in the sales structure decreased from 17.1% in 2018 to 5.2% in 2022. There is high competition on the market, which will not be able to weaken the departure of foreign companies. However, sales growth in the medium term will limit the expected stagnation of Russians' income amid high loan rates, coupled with higher prices for products.

For 2018-2022 exports of bathroom furniture from Russia decreased by 11.6% and in 2022 amounted to 39.7 thousand pieces. The key contribution to the reduction in supplies was made by 2020 and 2022. In 2020, due to the COVID-19 coronavirus pandemic, the processes of foreign trade operations were complicated, and demand from foreign buyers also decreased, in 2022, the geopolitical agenda contributed to the development of the furniture market, as well as many other domestic markets.

In 2022, due to the crisis, the demand for Russian furniture from Ukraine, Kazakhstan and Germany significantly decreased. Over the past few years, Ukraine has been one of the largest destinations for Russian exports: about 30% of the total supply of bathroom furniture from Russia was supplied to this country annually. The rupture of diplomatic and trade relations led to the fact that supplies to Ukraine were suspended: in 2022, only 2.2 thousand products were sent to the country, which is 6.9 times less than in 2021.^[11]

The production of furniture for summer cottages and gardens in Russia decreased by 10.1%, to 6.35 million pieces

The production of furniture for summer cottages and gardens in Russia decreased for the first time in 5 years - by 10.1% in 2022 compared to 2021. Such statistics in July 2023 were cited by BusinesStat analysts.

In 2018-2021. the production of furniture for summer cottages and gardens in Russia increased annually. The largest increase was in 2020, when self-isolation during the COVID-19 coronavirus pandemic, as well as hot summer weather, contributed to an increase in demand for recreation items and summer cottages.

According to the calculations of experts, in 2022, 6.35 million units of furniture for summer cottages and gardens were made in the Russian Federation. The Russian garden furniture market is mainly focused on domestic sales: only about 1% of products are exported.

The study notes that in 2022, against the background of a decrease in domestic production, imports of goods for summer cottages and gardens increased. The main supplier of garden furniture to Russia is China, which accounted for about 70% of the total supply of products from abroad. Mainly furniture on the metal frame of the middle and low price segment is imported from the country.

In 2022, furniture for the summer cottage and garden was exported from Russia for $591 thousand, which is 82.5% more than in 2018. The dynamics of the turnover of garden furniture exports was largely associated with a change in the natural volume of supplies.

According to analysts, furniture for summer cottages and gardens is a product of seasonal demand. A significant part of products for the new spring-summer period is produced at the end of the year. Expecting a narrowing in demand amid a new crisis amid an uncertain economic and foreign policy situation, manufacturers cut production in 2022. In addition, under the influence of sanctions, as a result of violation of supply chains, Russian manufacturers experienced difficulties in delivering imported materials and components for the manufacture of furniture: some fabrics, metalware and paints.^[12]

Sales growth of soft furniture by 28.4% to 4.16 million units

The Russian soft furniture market has grown by 28.4% over 5 years - from 4.16 million products sold in 2018 to 5.35 million in 2022. Such data are provided in a study by BusinesStat, published in May 2023.

In 2022, sales of soft furniture in the Russian Federation showed the largest growth in 5 years - by 12.1%. Experts attribute this to an increase in the commissioning of residential premises, which became possible thanks to the action of preferential mortgage lending programs. According to Rosstat, in January-December 2022, 102.7 million square meters of the area of ​ ​ residential buildings were commissioned, which turned out to be 11% higher than the previous year. This record amount of input spurred significant sales growth in the finishing materials and furniture markets. The construction sector is traditionally the locomotive for the development of many industries in Russia, the study said.

In 2018-2022 The Russian soft furniture market demonstrated growth rates in the range of 1.1-12.1%. At the same time, in 2020-2021, the increase in sales was supported by the action of preferential mortgage lending and maternity capital programs, which stimulated the demand for new housing requiring the purchase of furniture. In addition, additional incentives to increase sales of soft furniture during this period were a decrease in the refinancing rate, which increased interest in consumer lending, as well as the growth of the suburban real estate market due to the coronavirus pandemic (COVID-19) and self-isolation measures.

In 2022, the export of soft furniture decreased immediately by 34.8% and amounted to only 262.4 thousand pieces, which was comparable only to the level of 2020. The largest reduction in export supplies in 2022 was noted in Kazakhstan (-62.4 thousand units), Belarus (-37 thousand units) and Germany (-22.1 thousand units).^[13]

13.5% reduction in chair production to 4.3 million units

The production of chairs in Russia in 2022 decreased by 13.5% compared to 2021 - 4.3 million pieces. Such figures are contained in a report by the analytical agency BusinesStat, which was released in May 2023.

In 2018-2019. the export of chairs from Russia increased by 63.3% to 1.97 million pieces. In the crisis 2020, there was a sharp decrease in supplies by 23.5% or 463 thousand units, while exports to Belarus decreased the most (by 416.7 thousand units). In 2021, the export of chairs from Russia recovered by 15.6% and amounted to 1.74 million units. In 2022, deliveries again decreased by 40.1% and amounted to 1.04 million chairs. The most significant in 2022 decreased the export of chairs to Kazakhstan - by 248.9 thousand pieces, to Ukraine - by 97.1 thousand pieces, as well as to Poland - by 59.5 thousand pieces.

In 2021, against the background of a significant increase in average prices for products and an increase in supplies in physical terms, revenue from the export of chairs from Russia increased immediately by 60.2% and amounted to $38.2 million. In 2022, due to a reduction in the natural volume of supplies, export turnover decreased by 29.2% and amounted to $27 million, according to BusinesStat.

According to analysts, in 2022 the furniture industry in Russia was in a difficult situation. Manufacturers reported a shortage of components and their rise in price, problems with equipment and lack of working capital. Despite the fall in imports, which seemed to play into the hands of Russian manufacturers, there was no growth in demand for domestic products, as buyers took a wait-and-see attitude and postponed the purchase of new furniture indefinitely.

A significant problem in the industry was also the withdrawal from the Russian IKEA market. The concern occupied 20% of the Russian furniture market with a production localization level of more than 50%.^[14]

Export decline by 39% to 29.5 billion rubles

In 2022, Russia delivered furniture worth 29.5 billion rubles abroad, which is 39% less than a year earlier. Such data from the Association of Furniture and Wood Processing Enterprises (AMDPR) were released on February 21, 2023. According to her estimates, in 2021 Russia exported about 16% of all furniture produced, and in 2022 this share halved.

As Kommersant writes with reference to the president of AMDPR and the general director of First Furniture Alexander Shestakov, Russian furniture makers lost a total of about 18 billion rubles from reducing the export of products abroad in 2022.

The loss of European and American furniture markets with such difficulty due to sanctions was perhaps their most annoying consequence for Russian furniture makers, says Shestakov. - But the work done in previous years has not been lost: the products of domestic enterprises have a high reputation all over the world. Thanks to this, access to the new markets of the Middle East, North Africa and China will happen faster.

The main areas of export of Russian furniture in 2022 were Kazakhstan, Uzbekistan, Azerbaijan and other CIS countries, while the supply of domestic products to Europe actually stopped in March 2022.

The departure of the Swedish IKEA had a strong impact on the collapse of exports - a significant part of the products produced in Russia was exported. According to Patrick Anthony, chairman of the board of directors of the Ingka group of companies, which includes IKEA, in the Russian Federation, in 2019 the company accounted for about a quarter of the total export of Russian furniture.

At the same time, in 2022, furniture imports to Russia decreased by 44% year-on-year, to 103.4 billion rubles, due to logistics problems. The share of European furniture in the import structure fell from 50% to 30%. Furniture was imported mainly from Italy, Germany, Spain and Romania.^[15]

Furniture production for six months increased by 13.8%, to 153.1 billion rubles

According to the forest accounting department, 86.9% of the volume of production of furniture products in the Russian Federation in 2022 falls on Russian companies, 11.8% - on foreign ones. The remaining 1.3% is for enterprises that are jointly owned by Russia and abroad.

In value terms, furniture production in Russia for the six months of 2022 increased by 13.8%, to 153.1 billion rubles. This, according to the head of Roslesinforg Pavel Chashchin, indicates that Russian manufacturers of furniture products are able to satisfy the demand of buyers in the country's domestic market, despite the departure of foreign companies and difficulties with the supply of components, fittings and technological equipment - forestcomplex.

2021: Furniture production in Russia increased by 36.5%, to 310 billion rubles

In 2021, furniture worth 310 billion rubles was produced in Russia, which is about a third (by 36.5%) more than a year earlier, and in comparison with 2019, when there was no COVID-19 coronavirus pandemic, the market volume grew by 46.2%. This is evidenced by the data of the Association of Furniture and Woodworking Enterprises (AMDPR), published in mid-February 2022.

AMDPR President Alexander Shestakov calls the reduction in the share of imports among the main factors in increasing production: before the start of the pandemic, it was about 50%, and over the past two years it has been holding at 42% of total sales. He connects this with the government's decision to restrict purchases of foreign furniture by the public sector. Thanks to two government decrees, the largest state customers were limited in the possibilities of purchasing imported furniture, which stimulated them to pay attention to the products of Russian enterprises. The second driver of growth, according to Shestakov, was the construction boom.

The largest furniture enterprises quickly joined this process, many actively cooperate with construction companies, which certainly contributes to the growth of furniture production, in particular in such segments in demand by new settlers as kitchen furniture, furniture for living rooms and bedrooms, - said the President of AMDPR.

The largest increase was shown by the office furniture segment: the production of metal furniture for offices increased in 2021 compared to 2020 by 78% to 29 billion rubles, wooden - by 21% to 20 billion rubles. The production of kitchen furniture has grown significantly: Russian enterprises in 2021 increased the production of kitchens by 30% to 42 billion rubles, furniture for canteens and living rooms - by 40% to 23 billion rubles.^[16]

Notes