GERMANY –     The German furniture industry continues to face significant challenges due to a weak consumer climate, sluggish residential construction, and growing bureaucratic burdens like the EU Deforestation Regulation.

In the first half of 2025, total sales dropped 5.1% year-on-year to EUR 7.9 billion, according to the German Furniture Industry Association (VDM). Domestic sales fell 6.2%, while exports saw a lesser decline of 2.9%.

Despite the tough environment, the industry forecasts a more moderate 3% sales decline for the full year, an improvement from the 7.8% drop in 2024. VDM Managing Director Jan Kurth expects demand to pick up in the fall, driven by rising real incomes and a renewed consumer focus on home furnishings after the summer season.

Sector performance varied, with kitchen furniture proving most stable (down 2%). The mattress segment suffered the sharpest drop (down 18.8%), while store and object furniture sales grew by 2.1%.

International trade is also mixed, with resilient export growth in the US, Switzerland, and Spain, but steep declines in China and market pressures from rising imports, particularly from China and Poland.

Photo: Jan Kurth