Import competition weighs on Australia’s wooden furniture manufacturing

Australia’s wooden furniture and upholstered seat manufacturing sector has faced mixed conditions in recent years, with industry research firm IBISWorld reporting that demand surged during the pandemic but has since been subdued by rising import competition and cost pressures.

According to IBISWorld’s Wooden Furniture and Upholstered Seat Manufacturing in Australia report, demand peaked in 2020-21 as households increased spending on home renovations and upgrades during and after lockdowns. 

Since then, however, manufacturers have struggled to sustain revenue growth amid an influx of cheaper imports, particularly from China, Vietnam and Malaysia, the report noted. 

IBISWorld noted that these imported products are appealing to price-conscious consumers, who are dealing with limited discretionary income and higher living expenses.