In 2025, the Chinese furniture industry as a whole will exhibit characteristics of "high growth in domestic sales, pressure on exports, structural upgrading, and shrinking profits," placing it at a critical juncture of transformation, focusing on overall volume adjustment and quality and efficiency improvement.
Regarding revenue and profit, from January to August, the revenue of furniture enterprises above a designated size reached 403.83 billion yuan, a year-on-year decrease of 6.0%; total profit was 17.1 billion yuan, a year-on-year decrease of 16.7%, with a revenue profit margin of only 4.1% (0.4 percentage points lower than the manufacturing average). Increased market competition and fluctuating raw material costs are the core sources of pressure. Production shows structural differentiation: cumulative output of metal furniture increased by 2.6% year-on-year, while output of wooden and upholstered furniture decreased by 3.4% and 3.8%, respectively.
The core driver of demand came from domestic sales. From January to August, retail sales of furniture by enterprises above the designated size reached 133.53 billion yuan, a significant year-on-year increase of 22.0%. Renovation of existing homes (accounting for 65%) and consumption upgrades (customization, environmental friendliness, and smart technology) were the main drivers. The average order value for whole-house customization increased by 50% compared to 2020, and the selection rate of formaldehyde-free environmentally friendly boards reached 89%. Exports, however, continued to face pressure. From January to August, cumulative exports reached US$45.18 billion, a year-on-year decrease of 5.2%. Weak demand in Europe and the United States and increased trade barriers were the main reasons. However, emerging markets along the Belt and Road Initiative (Asia-Pacific and Latin America) saw growth of 8%-12%, becoming a new direction for overseas expansion.
In terms of development trends, industry investment is focused on intelligent transformation (fixed asset investment increased by 14.8% year-on-year from January to August). Leading companies have increased their industrial robot density by 3.4 times compared to 2020, and reduced production line changeover time by more than 90%. Small and medium-sized factories are being phased out at an accelerated pace, while leading companies are consolidating their advantages through capacity integration and overseas expansion (building production/procurement bases in Southeast Asia). Smart home and customized furniture are becoming new growth engines. It is estimated that the market size of smart furniture will exceed 250 billion yuan in 2025, and the proportion of customized furniture will rise to 58%.
