The German upholstered furniture industry continues to battle difficult market conditions, with revenues falling by 7.2% in the first seven months of 2025 compared to the previous year. According to figures released by the Association of the German Upholstered Furniture Industry (VdDP) at its annual press conference, sales reached €540 million between January and July, down from €580 million in 2024.
© VDM/VHK
VdDP Chairman Leo Lübke (left) and Association Managing Director Jan Kurth report on the situation of the German upholstered furniture industry.
Despite the decline, VdDP Chairman Leo Lübke expressed cautious optimism: "We believe the lowest point has been reached and are counting on stronger demand in the autumn and winter months. Our sector is full of ideas for a beautiful and comfortable home, many of which will be presented at the upcoming trade fairs. However, innovation is too often slowed by bureaucratic hurdles."
The domestic market remains the greatest concern, with revenues dropping by around 10% year-on-year. Association Managing Director Jan Kurth cited consumer uncertainty due to economic pressures and geopolitical instability, leading to reduced spending and a rising savings rate. He also highlighted the housing shortage as a key issue: "New housing drives furniture sales. The government's proposed 'construction turbo' is promising, but more funding and broader access to homeownership are essential."
Exports showed mixed results. Sales to Switzerland held steady at €104 million, while Austria fell by 8%. On the other hand, exports rose sharply in France (+6.9%), Italy (+19.3%), the UK (+4.4%), and particularly in Spain (+43.4%) amid a housing boom. Outside Europe, the U.S. market grew 2.5%, while shipments to the UAE surged 82%, albeit from a small base.
At the same time, imports into Germany increased by 16%, with Poland and China accounting for two-thirds of all imported upholstered furniture.
Beyond sales, regulation is a growing burden. The imminent EU Deforestation Regulation (EUDR) requires proof of deforestation-free supply chains for materials such as wood and leather. Many smaller companies are struggling to meet the deadline of 1 January 2026. Lübke welcomed calls for an extension until the end of 2026: "The administrative effort is immense and distracts from developing real sustainability innovations."
The planned EU Digital Product Passport (ESPR) is also causing concern, though it could bring opportunities for greater transparency and circular design. To prepare, the industry will hold a conference in Cologne on 9 October titled "A New Perspective on the Digital Product Passport."
Despite challenges, sustainability and comfort remain central to design trends. Manufacturers are increasingly adopting eco-friendly materials, modular systems, and cozy fabrics like bouclé, chenille, and velvet. Natural shades—beige, sand, grey, sage, and terracotta—are shaping the colour palette, while functional features such as USB ports and adjustable seating cater to modern lifestyles.
Kurth concluded with a cautious forecast: "We expect 2025 revenues to end around 5% below last year, slightly better than the current trend."
More information:
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