German Furniture Industry Faces Declining Sales and Closures

Economic pressures, shifting consumer priorities, and a slowdown in housing construction are driving a significant downturn in the furniture sector.

Furniture sales in Germany fell by 6-8% in 2024, with manufacturers experiencing a 7.4% revenue decline to €16.4 billion.
Consumer spending has shifted toward essentials like food and energy, with furniture purchases deprioritized due to rising living costs.
The industry is still grappling with post-COVID effects, as many consumers advanced furniture purchases during the pandemic, reducing current demand.
A sharp drop in housing construction, with 2024 witnessing the lowest number of new housing permits since 2010, has further weakened the market for furniture and kitchen sales.
The crisis has led to increased bankruptcies, job losses, and closures, with 44% of companies reporting short-time work in early 2025, though some experts foresee modest recovery prospects for the year.