Latest! Analysis of China's Lighting Industry Exports to European Countries in the First Half of 2023

The following article is from the China Association of Lighting Industry , authored by CALI

Europe is the second-largest export market for China's lighting industry. In 2022, lighting products exported to Europe accounted for 24% of China's total lighting product exports. With the global proposal of energy conservation and emission reduction goals and low-carbon development targets, Europe will more actively promote the replacement of inefficient lighting products. The European Lighting Association has proposed that it will strive to contribute to the EU's goal of achieving net-zero emissions. It is estimated that by 2030, the maximum annual total energy savings achievable by optimized lighting systems with control devices used in the 28 EU countries will reach 20-29 TWh, and by 2050, it will reach 48-56 TWh. This will also accelerate the transformation and upgrading of the European lighting market.

Based on the current status and changes in the European lighting market, we analyze the situation of China's lighting industry exporting to European countries in the first half of this year.

今年上半年，我国与欧洲进出口贸易额6114.7亿美元。其中，我国与欧盟出口贸易额2593亿美元，同比下跌6.5%。据海关统计，2023年上半年，我国照明产品对欧洲国家出口额约66亿美元，同比下降12%，占我国照明产品出口总额24%。受欧洲市场需求萎缩、地缘局势复杂多变等因素影响，虽然我国照明产品对欧洲出口的规模保持高位，但对欧洲出口整体呈现下滑态势。

China's export of accent lighting products to Europe

Luminaire products

In the first half of the year, China's exports of luminaire products to European countries amounted to approximately $5.2 billion, a year-on-year (YoY) decrease of 12%, accounting for about 79% of China's total lighting product exports to European countries and about 25% of China's total luminaire product exports. Among them, 'other electrical luminaires and lighting devices designed exclusively for use with light-emitting diode (LED) light sources' continued to grow rapidly, with a year-on-year increase exceeding 25%.

Electric light source products

Since 2023, the export volume of China's electric light source products to European countries has increased year-on-year by more than 6%. Among them, the total export volume of ordinary lighting electric light sources decreased year-on-year by 14%; among them, LED electric light source products grew year-on-year by about 7%; the export volume of 'compact hot cathode fluorescent lamps' saw the largest decline, approaching 80%.

It is worth noting that for lighting products exported from China to Europe, the average export price of some thermal radiation light source products such as incandescent lamps and HID lamps, and gas discharge light source products, rose between 30%-120%; the average export price of some products such as LED electric light sources and fluorescent lamps fell between 5%-70%. Most luminaire products exported to European countries also show a downward trend.

China's Key Export Destinations to Europe

By country, the top ten European countries by lighting product export value from January to June are: Germany, United Kingdom, Netherlands, France, Russia, Poland, Spain, Italy, Belgium and Greece. Import values for 18 countries in Eastern Europe and parts of the Mediterranean, including Russia, Poland and Belarus, increased year-on-year by 20%, accounting for about 22% of China's total lighting product exports to Europe; import values for 31 countries including Germany, United Kingdom and France decreased year-on-year by 16%, accounting for about 78% of China's total exports to Europe.

Russia

Russia is one of the few major European countries showing a growth trend in imports of lighting products from China. From January to June this year, the value of Chinese lighting products exported to Russia was approximately $600 million, a year-on-year increase of over 20%, accounting for 9% of China's total lighting exports to European countries. Among them, the export value of [[Electric light source]] related products increased by 28% year-on-year; the export value of [[Luminaire]] related products increased by 12% year-on-year.

Germany

Germany was the top destination for China's lighting product exports to Europe in the first half of 2023. From January to June this year, the value of Chinese lighting products exported to Germany was approximately $1.1 billion, a year-on-year decrease of over 15%. Among them, the export value of [[Electric light source]] related products decreased by 22% year-on-year; the export value of [[Luminaire]] related products decreased by nearly 20% year-on-year.

Overall, the first half of this year saw that China's lighting industry exports to Europe were not surprising. In the second half of this year, China's lighting exports to Europe may face significant pressure. First, factors such as weak economic recovery in Europe and fluctuations in geopolitical risks have reduced European demand for Chinese lighting products, thereby creating pressure on exports; Second, EU countries are implementing a 'de-risking' strategy, reducing their dependence on Chinese products. Some European buyers are accelerating the 'China+1' strategy, with manufacturing countries in Southeast Asia, India, Turkey, etc., diverting export orders from China; Additionally, the high base caused by abnormal fluctuations in foreign trade due to the pandemic over the past three years has also added significant pressure to foreign trade this year.

For the lighting industry, Europe will remain a key export destination for China's lighting industry, playing an indispensable role in maintaining the scale of China's lighting exports. In response to the current situation, China's exports to Europe should focus on the following aspects:

一是出口产品结构的潜在变化。2022年至今，俄乌战争对欧洲传统能源供给结构产生了重大影响，促使欧盟加速再生能源转型进程，并借此提出刺激性政策大举布局光伏、风能、核能等清洁能源发电市场。采用光伏发电技术的LED照明产品具备环保节能、环境保护、安全性、使用期限长、检修便捷等优势，对欧洲出口呈上升趋势。根海关统计，光伏LED照明产品成为我国照明出口产品中，较少能够保持出口量、出口额、出口均价都有增长的品类。其中，该类产品对欧出口量占到其总出口量的50%。此外随着绿色低碳的发展和《关于汞的水俣公约》履约进程的不断深入，欧洲加快了对高耗能照明产品及荧光灯为代表的添汞照明产品的淘汰，LED照明产品的需求将进一步提升。

Secondly, the impact of sustainable development on products and technologies. This October, the EU will be the first to levy carbon tariffs. Although the first batch of products does not involve the lighting sector, the lighting industry should take proactive action to focus on the application of green low-carbon technologies in lighting, accelerate data management of the carbon footprint system for the entire lifecycle of lighting products, and establish new R&D strategies based on green low-carbon concepts across all stages including production materials, processes, packaging, and recycling. It should build a green supply chain system and prepare for potential future market demand.

Thirdly, pay timely attention to the legislative process related to the EU. Although the EU has proposed clear goals for market transformation and energy saving in lighting, the funds available to EU governments for energy transition are insufficient, and the pace of transition to LED lags behind the capabilities of various smart lighting solutions already provided by the lighting industry. To this end, the European lighting industry is cooperating with European legislators to help the market transition to LED lighting equipped with sensors and control systems by leveraging the potential of LEDization and sustainability. Manufacturing enterprises whose key export markets are Europe should actively monitor the progress of relevant laws and regulations to seize opportunities for market expansion.

Germany was the largest export market for China's lighting industry to Europe in the first half of 2023, making it a key destination for Chinese lighting enterprises' exports. The Light + Building exhibition held in Germany has always been the most favored international trade fair for Chinese exhibitors. The 2024 Light + Building will be held from March 3 to 8. As the world's largest and most influential professional lighting exhibition, Light + Building is a global trading platform for lighting products and a barometer for new lighting technologies and applications worldwide. It is understood that despite the impact of domestic epidemic prevention policies and fewer flight schedules in 2022, more than 100 Chinese companies still participated in the Light + Building exhibition, demonstrating Chinese enterprises' emphasis on the European market. For the 2024 Light + Building exhibition, in addition to the familiar China Pavilions 10.1 and 10.2, high-quality Chinese enterprises are encouraged to apply for participation in the European Pavilion. The China Association of Lighting Industry (CALI) is the Level 1 agent for this exhibition and has organized Chinese enterprises to participate in groups for many consecutive years. In March 2024, during the trip to Germany for the exhibition, CALI will organize enterprises to gain an in-depth understanding of changes in the European market. For relevant information, please contact the Exhibition Information Department of CALI.