In the dynamic landscape of the German furniture industry, recent data from Destatis reveals a notable downturn, with sales totaling approximately €4.2 billion during the third quarter of 2023. This represents an 8.6% decrease compared to the same period in the preceding year. The situation becomes more pronounced in September, with a significant plunge of 14.4% in sales totaling €1.5 billion. Jan Kurth, the managing director of German furniture industry associations, highlights the industry’s struggle with a persistently sluggish consumer climate. This article delves into the multifaceted challenges faced by manufacturers, analyzing sector-wide losses and the overarching impact on both domestic and international markets.
Based on data from Destatis, the German furniture industry recorded approximately €4.2 billion in sales during the third quarter of 2023, marking an 8.6% decrease compared to the same period in the previous year. Notably, September witnessed a substantial decline in sales, plummeting by 14.4% to €1.5 billion. Jan Kurth, the managing director of German furniture industry associations, noted that manufacturers have been grappling with the impact of a sluggish consumer climate for several months. The overall demand for furniture remains subdued, as evident in the association’s internal statistics, which reveal that the volume of orders received by the end of September 2023 is, on average, 12% lower than the preceding year.
During September, the German furniture industry experienced a sluggish performance in both domestic and international markets, with sales declining by 14% and 15.5%, respectively. All segments of the industry in Germany faced losses, with notable declines in upholstered furniture (-20.8%), other furniture (-17.3%), and kitchen furniture (-15.9%). The office furniture (-6.1%) and shop and contract furniture (-7.8%) segments also witnessed decreases in sales during this period.
In the initial nine months of the current year, the furniture industry witnessed a nearly 3% decrease in sales, amounting to €13.7 billion. According to the industry association, this official figure accurately reflects the actual trajectory of the sector. The export quota for this period stood at 33.5%. Among the top 10 markets for export, only furniture shipments to Switzerland (+2.7%) and Italy (+0.7%) saw an increase during the first nine months. Conversely, business declined in all other countries, with substantial drops in exports to Austria (-10%), Belgium (-8%), and the United States (-11.7%). France maintained its position as the leading export destination, albeit experiencing a 3.5% reduction in sales.
From January to September 2023, furniture imports to Germany registered a significant decline, standing at one-fifth below the figures for the same period in the previous year. Notably, China, the second-most crucial supplier country, faced a disproportionate decrease of approximately 35%. In contrast, Poland maintained its status as the leading supplier country despite a decline of 6.2%.
According to Jan Kurth, the managing director of the industry association, the furniture sector anticipates more difficult months ahead. A swift improvement in the overall conditions is not currently foreseeable. The outlook is further dimmed by a deceleration in new residential construction and a generally pessimistic outlook among consumers. Kurth emphasized the urgent need for Germany to expedite the revival of construction demand, suggesting targeted funding for projects that have received approval but are currently on hold as a potential solution.
Source: Fordaq.com
