German furniture industry - down 7.4% in 2024, but forecasts for 2025 are optimistic

The German furniture industry recorded a turnover of €16.4bn in the previous year, marking a fall of 7.4% on the previous year, according to official data. This downward trend was seen both on the domestic market, where sales fell by 6.8% to almost €11 billion, and on foreign markets, where sales fell by 8.6% to €5.4 billion.

Jan Kurth, managing director of the Associations of the German Furniture Industry (VDM/VHK), explains: "In addition to the deteriorated consumer climate, our companies are suffering particularly from the effects of the decline in house building." In response to this situation, the furniture industry associations, together with other organizations in the construction and interior design sector, have recently launched an initiative calling on the incoming federal government to take urgent action to boost housing construction.

Situation by segments and export markets

Of the industry segments, office and shop furniture manufacturers recorded the smallest decrease of about 4%. The kitchen furniture industry saw a decrease of 6.5%, while mattress manufacturers reported a decrease of approximately 5%. The upholstered furniture industry experienced a decrease of 8%, while the 'other furniture' segment (which includes living, dining and bedroom furniture) and furniture components saw the most significant decrease of 11.2%.

In terms of exports, France remains the most important external market, although deliveries to this country fell by almost 7% to around €1.3 billion. Downward trends were also recorded in deliveries to Switzerland (-6.2%), Austria (-8.1%), the Netherlands (-11.9%) and the United Kingdom (-2.9%).

A positive note comes from the United States, the most important sales region for 'Made in Germany' furniture outside Europe, where deliveries increased by 1.3% to €253 million. Exports of kitchen furniture to the USA saw an impressive increase of around 13%, thanks to joint promotional activities at international fairs.

Outlook to 2025

"For the next few months, we initially expect a sideways movement (editor's note: stagnation) for our industry," Kurth reports. "We then hope for a slight revival in the fall of this year."

The association's director anticipates that lower inflation, rising real incomes, the expected further interest rate cuts by the European Central Bank and the impulses from international business could prompt consumers to make the furniture purchases that have been postponed recently.

For the year 2025, forecasts indicate a moderate increase in turnover for the German furniture industry in the single-digit percentage range (below 10%).