Ingrida Grikpėdienė: What causes the furniture industry to stagnate or grow?

Although statistics show that industrial production grew by almost 8% in March 2025, furniture manufacturers have not yet felt the recovery. Growth is fragmented and does not always reflect financial results. The furniture sector is among the first to face competitive pressures, geopolitical challenges, supply chain instability, and labor shortages. How the industry responds to these challenges will determine not only the sector’s future, but also the industry’s.

2024 was a challenging year for the furniture sector, but there were also positive developments. Exports amounted to €2.321 billion, a 3% decrease from 2023. In the fourth quarter, exports totaled €594 million, a 2% increase from the previous year.

Wooden furniture was the most exported product (66%), though exports of this product declined toward the end of the year.
Exports are heavily concentrated in a few markets, primarily Germany, where exports grew by 2%. However, exports to Sweden, the US, and the UK declined. The situation is better in Poland and Spain, where exports grew by 12% and 7%, respectively.

Concentration in three markets (Germany, the UK, and the US) increases risk and makes diversifying export destinations necessary. In the first quarter of 2025, some companies experienced double-digit growth in production, yet conservative pricing limited financial growth. Increasing competition from Asian producers means Lithuanian companies need to invest in technology, sustainability, and innovation. However, not all companies can do this without help.

Supply chains present another challenge. Geopolitical conflicts and logistics costs necessitate the use of local raw materials and expansion of warehouses, which increases costs but strengthens security.

While Lithuania’s furniture sector is resilient, growth requires a long-term strategy from the state, including a raw materials policy, stable taxes, innovation promotion, and education reinforcement. Businesses are expanding production and looking for new markets, but their efforts alone will not ensure sustainable growth in the sector.

The furniture sector is no longer just a traditional industry. It is a sector that embraces innovation, design, the circular economy, and technological breakthroughs. For this to be fully realized, everyone—businesses, academia, and the government—must come together.