Europe remains the world's second-largest furniture market, with a consumption value of approximately EUR 106 billion, serving as a central hub for production and global trade. Despite resilience above pre-pandemic levels, the sector faced a downturn in 2024, with most European countries experiencing declining performance, particularly Germany and France, due to reduced construction activity and weak consumer spending.
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Spain and Poland defied the trend, supported by continued residential construction and modest sectoral growth, respectively. While intra-European trade remains strong—accounting for over 75% of foreign furniture trade, the industry also maintains global reach. Europe contributes over 35% of global furniture exports and 45% of imports, with Italy leading in non-EU market penetration.
Export growth outside Europe has slowed due to rising protectionism, geopolitical tensions, and regulatory uncertainty, reducing competitiveness. European manufacturers, once heavily invested in offshore production, are reassessing strategies amid rising costs in Asia, technological shifts, and increasing demand for product customisation and shorter delivery times. These factors are accelerating trends in reshoring and regional value chain development.
The macroeconomic context remains subdued, with the IMF forecasting modest GDP growth of 1.7% for 2024 and 2025, and inflation expected to ease to 2.6% and 2.3%, respectively. Although service inflation remains high due to wage growth, stabilising goods prices may bolster consumer confidence.
Furniture demand is forecast to remain flat in 2025, with slight improvement expected mid-term, driven by easing inflation, interest rates, and potential wage increases. Nonetheless, uncertainty remains high due to ongoing economic and geopolitical volatility.
Europe's furniture industry is navigating a critical phase, balancing structural strengths and internal cohesion with the challenges of global disruption and evolving consumer expectations.
Source: World Furniture Online.