FURNITURE FINISHING TRENDS: A FOCUS ON TURKEY

By Alessandra Tracogna – to be issued on World Furniture Magazine, CSIL – December 2018

The Turkish furniture industry is a competitive player in the global scenario. Furniture production grew at an average yearly rate of 5% (in real terms) since the beginning of the decade, outperforming many other European countries. Growth was so far driven by a positive trend on the domestic market and increasing competitiveness on exports (towards the Middle East, Europe, US). Currently and also likely in the next few quarters, the economy will be subject to tight financial conditions, weak sentiment, high inflation, exchange rate volatility and geopolitical tensions. All these socio economic factors pose significant downside risks, but when we take a perspective focussed on the medium-long term and on the furniture industry it is still reasonable to foresee a path of growth and development for Turkey as a furniture supplier. Cost of labour is comparatively lower than in the EU and the country sees the presence of large players along the entire value chain, like for example in the wood based panel sector, where companies like Kastamonu are outstanding for their production capacity if compared to other EU players.

More specifically, if we focus on prevailing trends in furniture finishing, as emerging form interviews recently conducted by CSIL to some Turkish companies, it seems that thermoplastic - PVC and increasingly PET -and melamine faced panels - including high glossy UV cured - are the most preferred options. Altogether they should account for around 80% of the market (with relevant difference across sub-segments). They are appreciated as they are seen as industrial and economic alternatives. In this, a pivotal role is conducted by the large wood based panel producers operating in Turkey, which are endowed by advanced technology that enable producers to keep costs competitive. Veneer and solid wood finishing were growing before the crisis, in order to respond to increasing demand in Western Europe. However it seems that at the moment this choice is less frequently adopted, mainly for economic reasons, and its share is probably less than 10%.

Lacquering is generally appreciated by Turkish people, particularly in the dining, living and bedroom furniture sub-segments (where its share is probably higher than 10%). Wood coating used for the furniture sector are mainly solvent-based (around 70%). UV coatings follows (around 25%). The share of waterborne products is still marginal, if compared with the situation in Western Europe, accounting for less than 10%. The diffusion of this technology is generally low, and even more if looking specifically to the indoor usage. As for the future, UV coating technology is expected to growth faster than (1K) water based coating.

Wood coating products are mainly sourced locally. The local industry is very concentrated, with the three largest companies – KAYALAR KIMYA, DYO BOYA and AKZO NOBEL (producing in Turkey) accounting for around 60% of the total wood coating market. Gen? (brand of KAYALAR KIMYA) is considered one of the most successful in the furniture sector. Imports of wood coating for the furniture sector accounts for less than EUR 20 million (that is around 5% of the market). Among the foreign suppliers the Italian company  ICA Group.

Focussing on the waterborne coatings sub-segment the role of imports is higher as there are relatively few Turkish producers supplying waterborne coatings and generally speaking, they are slow in developing new technologies. Still, there are some active companies it is worth mentioning, one of them being Dual Boya, which has a strong focus on waterborne coatings and is determined to increase its sales domestically and on exports.. Other suppliers are: Betek Boya, Polchem, Ece Boya, Aromatik.. As a general trend, the main factors limiting the spread of waterborne wood coatings in Turkey is its high cost, that reflects on the final product price becoming “a burden that final customers might not be willing to take on”. Performance is also perceived lower, if compared to solvent based, by several furniture The situation may evolve in a slow process taken in order to pursue the accomplishment to EU rules.

My most sincerest thanks for the preparation of this present article to: Olcun Ekinci, Gulsen Celiker, Murat Taymaz, Aykut Engin, Naci Gungor, Nesip Uzun, Funda ?eker S?lemez.