GERMANY – German kitchen furniture manufacturers are grappling with dwindling consumer demand.

Stefan Waldenmaier, CEO of the Association of the German Kitchen Furniture Industry (VdDK), revealed at their annual press conference in Herford that the industry’s order situation is tense, with a continuous decline in order intake over several months.

Association surveys indicate that from January to August 2023, incoming orders have plummeted by 11.5 percent compared to the same period last year, with a 2.6 percent reduction in value. Even when compared to the pre-pandemic year of 2019, there is a 2.7 percent drop in incoming orders by August 2023.

In addition to the persistently weak consumer climate and soaring material and energy prices, the German kitchen furniture industry is grappling with a challenging construction landscape. Escalating construction costs and higher interest rates are causing project delays and cancellations. In August, around one-fifth of housing construction companies reported project cancellations, marking a new high according to the Ifo Institute’s findings.