At first glance, the European furniture industry appears to have recovered from the pandemic, with an expected total turnover of €123.9 billion in 2025. However, behind these figures lies a different reality. A new analysis by data analyst Furnilytics reveals that physical furniture production has fallen sharply. The rising sector turnover is driven almost entirely by persistent price inflation rather than higher volumes.

The report by Furnilytics, based on data from 28 European countries, shows that inflation-adjusted furniture production has fallen below the 2018 level.

Apparent growth driven by rising producer prices
On paper, the production value of furniture in Europe rose from €100.7 billion in the disastrous year of 2020 to a record high of €130.3 billion in 2022. Although the market has stabilized slightly since then, the nominal production value in 2025, at €123.9 billion, is still approximately 15% higher than in 2018.



Adjusted for inflation, however, the index paints a sharp contrast:
- After a real industrial peak of €111 billion in 2022, actual production declined for three consecutive years.
- In 2025, the adjusted production value stood at €98.6 billion.
This means that actual physical production in Europe is currently about 8% lower than before the outbreak of COVID-19.

Manufacturers have therefore maintained their sales figures primarily by passing on necessary price increases to the trade, not by producing more units.


Three countries dominate half of the European market
European furniture production remains highly concentrated. Italy leads the ranking with an estimated production of €27.9 billion in 2025, followed by Germany (€20.7 billion) and Poland (€13.1 billion).

Together, these top three represent 49.8% of total furniture production in Europe. The ten largest producing countries even account for more than 80% of the entire market, meaning that cost increases in these specific regions have a direct impact on the entire European market.



New cost increases threaten in 2026.
Between January 2021 and March 2023, producer prices in the furniture sector rose by no less than 20.5%, one of the sharpest increases in decades. Causes included exploding energy prices, expensive raw materials, and rising logistics costs.

Although prices stabilized somewhat after 2023, they never fell back to pre-2022 levels. Moreover, the producer price index has recently shown a striking upward trend again: between December 2025 and April 2026, prices rose by 1.3%, the strongest increase in over two years.

Furnilytics warns that furniture manufacturers should expect new cost increases in 2026. Geopolitical tensions are keeping the energy market volatile, and shortages of raw materials such as methanol are driving up the prices of resins and board materials (such as particleboard and MDF). Whether manufacturers will be able to pass on these rising costs again will depend heavily on consumer confidence and the financial capacity of the retail sector.

Furnilytics is a specialised data and analytics platform that provides market insights, production trends, and economic indicators for the international furniture and interior design industry.
  
Source: furnilytics.com