The Polish furniture industry continues to face a prolonged downturn that began in late 2022, driven by weak demand, high costs and fierce international competition. Economic pressures, including the energy crisis, inflation and the eurozone slowdown, have weighed heavily on production and exports, with sharp declines reported in key markets such as the Visegrad countries, Germany, the UK and Russia.
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According to Bank Pekao SA analyst Krzysztof Mrówczyński, "the sector remains under severe pressure," with small and medium-sized firms hit hardest. By the end of 2024, 31% of furniture companies recorded net losses, compared with 24% a year earlier. Rising wages, averaging nearly 9% growth this year and forecast to remain high in 2026, are eroding margins in this labour-intensive sector.
Competition from Asian manufacturers, who are improving quality while maintaining low costs, poses an increasing threat, while US tariff changes risk flooding the EU market with redirected low-cost furniture. Access to affordable raw materials, once a competitive advantage, has also become a growing concern.
Despite these challenges, falling interest rates in Poland and Europe may offer some relief, potentially sparking a recovery in the housing and renovation markets and supporting gradual industry stabilisation.
Source: www.biznes.meble.pl
