European Upholstered Furniture Between Price Pressure and Product Innovation
MARKET INTELLIGENCE
According to CSIL’s report ‘The European Market for Upholstered Furniture’ (May 2026) upholstered furniture market in Europe closed in 2025 in broadly stable territory, but 2026 opened on a more difficult note. Demand remains soft across the continent, consumer confidence is subdued in key markets including Germany and France, and geopolitical instability shows no sign of resolution. Financing conditions continue to weigh on residential investment — one of the structural drivers of demand — while manufacturers are reassessing cost structures, consolidating production footprints and, in some cases, pursuing restructuring.
Adding a sharp new variable to an already complex picture, tensions in the Middle East and the conflict involving Iran have increased volatility in raw material markets. Polyurethane foam pricing is directly exposed to oil market movements, and with margins already thin across much of the European supply chain, the current trajectory points to renewed pressure on list prices this year.
THE TRADE DIMENSION: CAUGHT BETWEEN TWO PRESSURES
European manufacturers are facing pressure on two fronts: rising extra-EU imports competing in their home markets, and mounting uncertainty over key export destinations.
On the import side, CSIL’s latest trade snapshot shows that extra-EU imports, after peaking in 2022 and falling sharply in 2023, recovered through 2024 and rose further in 2025 to approximately EUR 4.8 billion, broadly matching their all-time high. China accounts for the largest share, with European imports of Chinese upholstered furniture reaching EUR 3.75 billion in 2025, up 5% year-on-year. The United Kingdom remains the largest European destination for Chinese products, absorbing over EUR 930 million, followed by Germany, France and the Netherlands. Spain and Poland were among the fastest-growing recipients.
Recent CSIL interviews with European manufacturers on competitiveness points in the same direction. Even producers from lower-cost European countries are finding it increasingly difficult to place products with major-volume retail chains, whose price expectations have moved to levels that European suppliers struggle to meet. Extra-European competitors — primarily from China and Turkey — have stepped in to fill that gap. Yet neither option is without complications. Chinese supply chains often require stock commitments or lead times of up to six months. Turkish suppliers face inflation and currency instability that make cost planning difficult and are less accustomed to the margin dynamics imposed by large European retail chains.
The degree of extra-EU penetration varies depending on market structure. In Germany and France, where purchasing power is concentrated among large retail chains, the shift towards extra-European sourcing is more pronounced. In Italy, by contrast, distribution remains fragmented — built around independent retailers and a strong culture of product customisation — and local and European producers retain meaningful competitive ground. Made-to-order configurations, shorter lead times and proximity-based service relationships remain differentiators.
Europe. Extra-Europe imports of upholstered furniture and major origin of imports 2020-2025. EUR million
On the export side, European manufacturers face a different set of risks. Extra-EU exports remained broadly stable in 2025 at around EUR 1.8 billion. The United States is the single largest destination, absorbing around EUR 620 million annually. This market held up well through 2025, but the outlook for 2026 is clouded by the threat of US import tariffs. The concern is already influencing strategic decisions: Natuzzi relocated production of its “Natuzzi Editions” line for North America from China back to Italy, citing US-China trade tensions and tariff risks.
China itself — the second-largest extra-EU destination for European furniture exports — also presents challenges. European premium and design brands active in the Chinese market are facing weaker demand, as soft domestic conditions and the prolonged real estate crisis continue to suppress household spending.
PRODUCT TRENDS: MODULARITY AND D2C BRANDS
If the trade and competitive landscape is defined by pressure, the product dimension is defined by consumer-driven evolution. Two trends stand out: modular seating systems and compressed sofas paired with direct-to-consumer distribution models.
The modular sofa has re-emerged as one of the defining product categories of the current decade, driven by both cultural and structural forces. The living room is no longer a single-purpose space: it must accommodate work, leisure, sleep and socialising, often within the same square footage. At the same time, housing instability across European urban markets — rising rents, frequent moves and shrinking apartments — has made reconfigurable and transportable furniture a practical necessity.
The commercial response spans all price segments. At the mass-market level, major retailers have built modular systems into their core sofa offer. At the mid-premium and B2B levels, manufacturers are developing modular platforms supported by digital configuration tools and showroom systems that allow partners to present multifunctional solutions to clients.
Perhaps the most telling indicator of the trend’s momentum is the emergence of D2C brands built around modular upholstered furniture across multiple European markets, including Swyft, Cozmo, Noah Living, Cubit, Vetsak, Wuun, Pummba, Feum, Optisofa, Livom and OMHU. These brands share a common logic — modular configuration, online-first sales and manageable parcel logistics — and signal genuine consumer pull beyond the retail channel.
That last point connects directly to the compressed, or roll-pack, sofa. Long associated with entry-level foam products, the format is being repositioned as a convenience proposition across a wider range of quality levels, driven largely by Chinese manufacturers that have invested in compression technology. The appeal is straightforward: doorstep delivery in a manageable box and limited assembly complexity. European manufacturers are beginning to respond, with Portuguese brand Kimo among the early examples.
Source: CSIL World Furniture Magazine #10, June 2026
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