In 2025, the Chinese furniture industry as a whole experienced pressure on domestic demand, shrinking profits, increased differentiation, and accelerated transformation. Key data and characteristics are as follows (as of September 2025, according to the China National Furniture Association):

I. Key Data Overview

- Revenue and Profit: Revenue of enterprises above designated size was RMB 456.2 billion, a year-on-year decrease of 6.7%; total profit was RMB 19.68 billion, a year-on-year decrease of 19.1%; the revenue profit margin was 4.2%, lower than the manufacturing average.

- Production and Exports: Cumulative furniture production decreased by 0.3% year-on-year (wooden furniture decreased by 4.6%); cumulative exports reached USD 50.18 billion, a year-on-year decrease of 4.6%.

- Market Structure: A large market with small enterprises; 7,435 enterprises above designated size; low industry concentration but accelerated consolidation; significant differentiation between leading and small-to-medium-sized factories.

 II. Key Market Characteristics

- Demand Side: The post-real estate cycle combined with consumption differentiation drives demand from first-time homebuyers and existing home renovations; customized, smart, and environmentally friendly furniture are gaining popularity, with Generation Z driving a balance between personalization and cost-effectiveness.

- Supply Side: Price wars and high costs are squeezing the profits of small and medium-sized factories; leading companies are relying on flexible manufacturing and digitalization to improve efficiency and reduce costs, accelerating mergers and acquisitions and overseas expansion; small and medium-sized factories are mostly surviving in regional/niche categories or transforming into service-oriented businesses.

- Transformation Directions: On the production side, digital transformation is being promoted through AI visual scanning and flexible production lines; on the channel side, online and offline integration is being implemented, with VR/3D design enhancing the user experience; on the product side, the focus is on whole-house customization + smart functions + environmentally friendly materials.

- Regional Clusters: Mature industrial clusters such as Shunde in Guangdong, Anji in Zhejiang, and Chengdu in Sichuan have clear divisions of labor and significant cost advantages.

III. Opportunities and Challenges

- Opportunities: Existing home renovation, pre-furnished housing, emerging overseas markets, and high growth in smart and customized products provide incremental space for factories with digital and cost advantages.  Challenges: Weak recovery in domestic demand, declining exports, homogeneous competition, and rising raw material and labor costs are forcing companies to shift from "compensating for lower prices with higher volume" to "value-driven growth."