The German furniture market faced another challenge in 2024, when total sales fell by 6.6% to 20.7 billion euros. The traditionally strong product group of kitchen furniture was particularly affected, recording a drop of 7.2%. These developments are part of a larger trend that reflects significant changes in consumer purchasing behavior.
The "Furniture Sector Report" by IFH Cologne and BBE Handelsberatung predicts that the market could reach a new level of stability in 2025. This hope is based on the assumption that economic conditions will improve and uncertainties in the consumer sector will decrease. Nevertheless, the situation remains tense for the industry, as it is located in a sector that is undergoing major changes due to digital transformation and changing consumer habits.
There have been positive developments in some furniture groups since 2019. Small furniture (+0.9% CAGR), upholstered furniture (+1.8% CAGR) and kitchen furniture in particular, which recorded a remarkable growth rate of +5.9% CAGR, were able to grow. However, the current consumer crisis has brought this growth to an abrupt end: All product groups suffered declines in sales between 2023 and 2024. Consumers' reluctance to spend, triggered by economic uncertainty and the rising cost of living, has had a lasting impact on the market.
In addition to these external factors, the furniture trade is also facing internal pressure to innovate. New, flexible business models are more in demand than ever in order to adapt to changing market conditions. The e-commerce sector in particular offers potential here, despite the challenges of logistics and cost structures. Companies are required to offer sustainable and customer-oriented solutions in order to increase the attractiveness of their products and hold their own against the competition.
The need for innovation goes hand in hand with the need to cut costs due to lower profit margins and tougher competition. The focus is increasingly on cost efficiency and optimized production processes in order to guarantee both quality and affordability. Another aspect that must not be neglected is the environmental awareness of consumers, which increases the pressure on companies to offer sustainable and environmentally friendly solutions.
Given these complex challenges, it is crucial for the German furniture market to enter into strategic partnerships and embrace technology-driven change. This could be the key to successfully overcoming the hurdles ahead and keeping the market stable.
