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Modest growth expected for the current year

German furniture industry revenue falls by 7.4% in 2024

The German furniture industry recorded a turnover of €16.4 billion last year, marking a 7.4% decline compared to the previous year, according to official figures. Domestic sales fell by 6.8% to just under €11 billion, while international sales (with an export share of 33%) dropped by 8.6% to €5.4 billion.


Photo: Dreamstime.

'The challenging consumer climate, along with the decline in new housing construction, has placed significant pressure on our industry,' commented Jan Kurth, Managing Director of the German Furniture Industry Associations (VDM/VHK). 'Together with other associations and businesses from the construction, furniture, and interior design sectors, we have recently launched a new initiative calling on the next federal government to introduce much-needed measures to boost housing construction.'

Among the various segments of the German furniture industry, office and shop furniture manufacturers experienced the smallest decline, with revenues falling by around 4%. The kitchen furniture sector saw a 6.5% decrease, while mattress manufacturers reported a drop of approximately 5%. Upholstered furniture sales declined by around 8%, and the category of other furniture—including living, dining, and bedroom furniture—suffered the largest loss, down by 11.2%.

Weakened consumer confidence and stagnating construction activity also led to declining sales across most European markets. Exports to France, Germany's largest export market, fell by nearly 7% to around €1.3 billion. Sales to Switzerland (-6.2%), Austria (-8.1%), the Netherlands (-11.9%), and the United Kingdom (-2.9%) also decreased. However, exports to the United States—the most significant market outside Europe for German-made furniture—rose slightly by 1.3% to €253 million, with kitchen furniture sales performing particularly well, increasing by approximately 13%, thanks to joint trade fair initiatives.

Internal order intake statistics from industry associations reflect the weak demand for furniture. On average, the kitchen, upholstered, and living furniture sectors recorded a nearly 5% decline in order value last year. This challenging order situation has also affected employment in the industry: the 414 companies with 50 or more employees (down 3.8%) had an average workforce of 71,231 in 2024—5.4% fewer than the previous year.

'For the coming months, we expect a period of stagnation in our sector,' Kurth noted. 'By autumn, we hope to see a slight recovery.' He pointed to factors such as easing inflation, rising real incomes, anticipated interest rate cuts by the European Central Bank, and a revival in foreign demand as potential drivers of renewed furniture purchases. For the full year 2025, the industry association forecasts modest revenue growth in the low single-digit percentage range.

More information:
Verbände der deutschen Möbelindustrie
www.moebelindustrie.de

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