German Furniture Industry Output Continues to Fall
The German furniture industry has seen a declining production output since the start of 2023. While several European peers — such as Poland and Italy — have managed to stabilise or limit their declines, Germany’s downturn has been notably sharper. This contraction reflects both weak domestic demand and structural pressures within German manufacturing, marking a reversal from the modest recovery seen after the pandemic.
Slacking demand and increased costs
The decline is driven by weak demand and persistent cost pressures. Consumer appetite for durable goods has remained subdued through 2024–2025, while the housing slowdown has reduced new furnishing demand. On the supply side, manufacturers face eroding price competitiveness and weaker export markets. These trends reflect a broader industrial downturn and high energy costs that continue to weigh on German production.
Other countries
Poland’s furniture industry has been hit less severely, supported by its strong export orientation and lower production costs. Competitive labour expenses and continued foreign demand — especially from Western Europe and larger retailers — have helped cushion the decline in output seen elsewhere in Europe.
Italian furniture exports have remained broadly stable, with growth in markets such as the U.S. and UAE offsetting weaker demand in Europe. At home, the ongoing Bonus mobili ed elettrodomestici tax incentive continues to support household furniture purchases and sustain domestic demand.
In summary, Germany’s furniture industry continues to face the sharpest downturn among major European producers, pressured by weak demand, high costs, and structural challenges. Poland and Italy, meanwhile, have shown greater resilience — Poland through cost advantages and strong export ties, and Italy through diversified markets and supportive domestic policies — underscoring the diverging paths within Europe’s furniture sector.