The German furniture industry increased its sales by 10.7% to around €14 billion in the first three quarters of 2022. Domestically, there was an increase of around 10%, while abroad German furniture manufacturers are turning over 12% more than in the same period of the previous year, according to official statistics. The export ratio increased slightly to 33.3% (previous year: 32.7%). Sales of upholstered furniture, kitchen furniture and other furniture, which also includes living room, dining room and bedroom furniture, increased at about the same rate (around 12%). The office and shop furniture manufacturers recorded an increase of 11%.

"The growth in sales is primarily price-driven and reflects the dramatic increase in material and energy costs," notes Jan Kurth, Managing Director of the Associations of the German Furniture Industry (VDM/VHK). However, demand for furniture has weakened noticeably in recent months. After a good start to the year, incoming orders have been declining significantly since the summer. "Our manufacturers are feeling the effects of the clouded consumer climate," reports Kurth. Fears of inflation led to a strong reluctance on the part of consumers to buy. A manageable increase in sales of 3.3% was achieved in September. The kitchen furniture industry (9.2%) and the office and shop furniture industry (10.4%) stood out positively. All other segments recorded losses.

When looking at the export business in the first nine months of 2022, the gratifying increase in exports to the United Kingdom with an increase of around 11% is striking. The British market recovered surprisingly quickly after the signing of the trade agreement with the EU and is the fifth most important export market for the German furniture industry. France is still number one in the ranking of the most important export countries with a drop in sales of 3.7%, followed by Switzerland with plus 5.9%, Austria with minus 1.7% and the Netherlands with plus 9.3%.

German furniture manufacturers were able to greatly expand their business in the United States, the most important foreign market outside of Europe. German furniture exports across the Atlantic climbed by around 20% from January to September – also due to currency effects. On the other hand, furniture deliveries to China, the second most important non-European market, fell by almost 13%. The main cause is the Chinese government's strict zero-Covid strategy. Exports to Saudi Arabia (24.4%) developed positively, which should be seen against the background of the country's political and economic opening. Furniture exports to Russia fell by 41% as a result of the war of aggression against Ukraine.

The view of the coming months is characterized by many uncertainties, says Kurth. For example, it is difficult to estimate how the government relief packages to cushion the sharp rise in energy costs will affect consumer sentiment. "The framework conditions for our industry remain very challenging," said Kurth. "The material and energy prices are still at a high level, the supply chains are still fragile and the order situation has clouded over noticeably." On the other hand, investing in durable consumer goods such as furniture represents a stable investment, especially in times of high inflation rates and one's own home is of paramount importance in uncertain times.