5 Jun 2025
,Germany
The German furniture industry is facing challenging times, as it recorded a revenue decline in the first quarter of the year. With total revenue of 3.9 billion euros, the sector experienced a 4.6% drop compared to the same period last year. This decline is reflected in both domestic and international business, presenting various challenges to the industry.
Despite the overall decline, the furniture industry shows varied developments across different segments. The kitchen furniture sector managed to show an initial stabilization trend with a revenue decrease of just 1.8%. This positive development is seen in the context of a slightly positive order intake, giving hope for a slow recovery in this segment. In contrast, the segment of other furniture, which includes living, dining, and bedroom furniture as well as furniture parts, recorded a decline of 3.8%, highlighting the extent of the challenge.
The detailed figures underscore the challenging situation: Domestic revenue fell by 5% to 2.6 billion euros, while international revenue dropped by 3% to just under 1.3 billion euros. Notably, despite the decline, the export ratio remained unchanged at 33%. This stability in the export ratio could indicate that international demand for German furniture remains steady, even though absolute figures are declining. International markets play a crucial role in offsetting the downturn in domestic sales and could therefore be a glimmer of hope for the furniture industry if growth rates in international business can be increased again.
Another positive aspect is the slight revenue increase in March. Here, the German furniture industry recorded a modest revenue growth of 0.6%. This recovery on a month-to-month basis could be interpreted as an indicator of a potential trend reversal in the course of the year. However, whether this positive trend will continue or strengthen remains to be seen and largely depends on further economic developments and global trade conditions.
The challenges currently facing the German furniture industry are multifaceted and require flexible adaptation to changing market conditions. Economic pressure triggered by rising raw material prices and logistics issues remains one of the biggest hurdles. Additionally, consumer demand has shifted, as people reevaluate and change their purchasing habits in the wake of the pandemic.
To succeed in this difficult environment, companies must invest in innovation and efficiency improvements. A stronger focus on sustainability and adaptation to new living trends can provide fresh impetus to the industry. Moreover, digitalization in retail offers opportunities for expanding e-commerce channels, which have gained significant importance during the pandemic years.
In summary, the first quarter shows that the furniture industry in Germany is facing demanding times. However, with targeted measures in innovation and market development, as well as a sharper focus on sustainable production, opportunities can be seized that could lead to long-term stabilization of the sector. The coming months will be crucial in determining whether the slight revenue increase in March can develop into a stable recovery.
