GERMANY – The German furniture industry experienced a significant downturn in 2024, with total turnover dropping 7.4% to EUR 16.4 billion, according to official figures.

Domestic sales fell 6.8% to just under EUR 11 billion, while exports (33% of total sales) decreased by 8.6%, reaching EUR 5.4 billion.

Jan Kurth, Managing Director of the German Furniture Industry Associations (VDM/VHK), attributed the decline to both a challenging consumer climate and a slowdown in new housing construction. He emphasized a new initiative from industry groups urging the government to provide more support for housing development.

Segment performance varied: office and shop furniture saw the smallest losses, down 4%, while kitchen furniture dropped 6.5%, mattresses fell 5%, and upholstered furniture decreased by 8%. The biggest decline came in the “other furniture” category, which includes living room, dining room, and bedroom pieces, suffering an 11.2% drop in sales.

The weakened market also impacted exports to European countries, with France, the largest export market, seeing a nearly 7% drop in sales. Exports to Switzerland, Austria, the Netherlands, and the UK also declined. On a positive note, exports to the United States increased by 1.3%, largely driven by stronger sales of kitchen furniture.

The decline in demand also affected employment, with a 3.8% drop in workers at companies with over 50 employees, totaling 71,231. Looking forward, Kurth expects the industry to remain flat in the coming months, but hopes for a slight recovery by autumn 2025, driven by lower inflation, rising incomes, and potential interest rate cuts.