The furniture and kitchen trade experienced a 3.6% decrease in revenue in 2023, according to the BVDM Trade Association for Furniture and Kitchens. This decline was attributed to significantly increased manufacturing costs passed on to customers, leading to a notable consumer restraint in spending. The aftermath of the COVID-19 pandemic, coupled with high prices, contributed to this trend, impacting the industry from the latter half of the year onwards. Additionally, the sector grappled with challenges stemming from the stagnant housing construction industry.
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Despite the overall decline, the kitchen furniture sector stood out with a 2.9% increase in revenue, demonstrating resilience amidst the construction crisis. However, the impact of the crisis is gradually affecting revenue growth in this segment. Other product groups, including living and sleeping, as well as upholstered, small, bathroom, and garden furniture, experienced varying degrees of negative revenue development.
The total sales of residential furniture in 2023 amounted to approximately 22.6 billion euros, marking a 3.6% decrease compared to the previous year. While online furniture retail has seen significant growth in recent years, traditional brick-and-mortar retailers, alongside furniture and kitchen specialists, maintained a dominant market share of around 80%.
Looking ahead, the furniture and kitchen industry faces continued challenges. The IFH Köln predicts negative growth dynamics across all product groups, except for a marginal growth of 1.0% in the kitchen sector. The industry's recovery is contingent upon the revitalisation of the housing construction sector, as it plays a pivotal role in driving demand downstream.
Addressing the current market situation, BVDM emphasises the importance of government intervention to create stable framework conditions and stimulate consumer sentiment. Moreover, navigating through regulatory hurdles and uncertainties, including inflation fluctuations and political directives, presents additional challenges for manufacturers and retailers alike.
More information:
BVDM Handelsverband Möbel und Küchen
www.hwb.online