The Furniture Industry in Europe - report by CSIL

Europe, the world's second-largest furniture market with a consumption value of around EUR 106 billion (over one-quarter of the global market), continues to hold a crucial position in the global furniture industry, acting as a pivotal hub for production, market size and world trade.

Figure 1. Europe and the rest of the world. Furniture consumption, 2019-2024. Eur billion and %

Source: CSIL                                                                            2024: preliminary estimates

In Europe, the sector's weak performance in 2024 remains evident. Most countries face similar challenges impacting their furniture industries, although the intensity varies depending on local market conditions. In nearly all European countries, negative performance trends have persisted in 2024. The German and French industries have been particularly affected, struggling with a sharp decline in construction activity and weak consumer spending. Spain, however, stands out as an exception, with residential construction continuing to provide a growth driver. Similarly, Eastern European countries, historically known for their rapid manufacturing growth, have also been affected by the challenging market conditions, particularly by the poor performance of the German economy. Poland presents another exception, with the furniture sector experiencing modest but positive growth.

Despite difficult market conditions in 2023-2024, the sector has proven its resilience, staying above pre-pandemic levels, supported by a high level of integration, and market concentration. Dominated by major retail chains and manufacturers operating on a European scale, the market benefits from strong internal cohesion and a well-established trade network. This structural strength not only underpins its stability but also drives the substantial concentration of export and import flows within the region. At the same time,

Europe maintains an ongoing openness to global markets, reflecting its proactive role in international trade.

THE EUROPEAN MACROECONOMIC CONTEXT

The European macroeconomic context in 2024 is marked by subdued growth, political fragmentation and uncertainty. Growth in Europe seems to have reached its lowest point in 2023, with GDP growth slightly weaker than projected in April and July 2024. The IMF growth forecasts for Europe are 1.5% in 2023, 1.7% in 2024, and 1.7% in 2025.

Although goods prices have stabilized, and some are declining, services price inflation remains high in many European countries. This is partly due to rapid wage increases as pay catches up with the inflation surge of 2021–2022. Looking ahead to 2025, the IMF anticipates a continued decline in inflation but acknowledges that bumps on the road to price stability are still possible. The IMF projects that consumer prices in the European Union will increase by 2.6% in 2024 and 2.3% in 2025.

Figure 2. Europe and the largest European economies. Real GDP growth %. 2023, 2024, 2025

Source: IMF (October 2024)

FURNITURE MARKETS FORECASTS

According to CSIL, in Europe, furniture demand is forecasted to remain almost stagnant in 2025 and slightly improve in the medium term. Some positive factors that could support a recovery include a slight improvement in macroeconomic indicators, an expected easing of inflation and interest rates, and potential wage growth. These factors could boost consumer confidence and encourage spending on furniture.

Despite this expected improvement, CSIL acknowledges that forecasts are subject to a higher-than-usual degree of uncertainty. The overall economic and geopolitical environment remains volatile, with potential downside risks.

The Furniture Industry in Europe

Report by CSIL

January 2025, XI Ed. , 539 pages

Language: English

Part of the CSIL Country Furniture Outlook Series covering 100 countries at present, The furniture industry in Europe contains all the main statistics and indicators useful to analyse the furniture sector in Europe and in 30 European countries.

For a detailed description, please visit the page https://www.worldfurnitureonline.com/report/the-furniture-industry-in-europe .