Germany’s furniture industry generated about Euro 3.8 billion in revenue in the first quarter of 2026, down 3% from a year earlier, with export revenue up 0.3% to about Euro 1.3 billion and domestic revenue down 4.7% to about Euro 2.5 billion, according to the Association of the German Furniture Industry.
Managing director Jan Kurth linked weaker consumer sentiment to a renewed rise in inflation driven by higher energy prices tied to the Iran war. He said willingness to buy fell in April to a two-year low based on GfK data, and the Ifo Institute reported a clearly worsened mood in the German furniture industry.
Almost 30% of surveyed furniture manufacturers plan to use short-time work in the second quarter, close to the first-quarter level of 33%.
Kurth said higher energy prices are also raising production costs, with manufacturers facing price increases for inputs including particleboard, metal fittings, and upholstery foams, as well as logistics services. He also pointed to pressure from U.S. tariff policy, rising furniture imports, consumer restraint, and stalled housing construction.
Only the kitchen furniture segment posted revenue growth in the first quarter, up 3.6% to about Euro 1.4 billion. Revenue for other furniture, including living, dining, and bedroom furniture, and furniture parts fell 7.7% to Euro 1.15 billion.
Upholstered furniture revenue declined 9% to Euro 221 million. Office furniture revenue fell 5% to Euro 464 million, and shop furniture revenue fell 3.8% to Euro 432 million. The mattress segment recorded revenue of Euro 110 million, down 8%.
The number of furniture companies with 50 or more employees averaged 374 in the first quarter, down 6.5%, and employment fell 5.2% to 65,454.
Kurth called for policy measures including tax relief, reduced bureaucracy, and steps beyond the government’s housing “construction turbo” to stimulate building activity, and he said the industry expects demand to improve from the second half of the year if supportive impulses reach consumers and companies.
