A sharp 54.4% drop! From January to April, the total profits of the national furniture manufacturing industry amounted to just RMB 2.67 billion.

2026-05-28 Source: 77°

According to the latest data released by the National Bureau of Statistics on May 27, from January to April 2026, the nationwide furniture manufacturing sector above designated size recorded operating revenue of RMB 169.58 billion, down 10.7% year on year; operating costs totaled RMB 141.39 billion, a decrease of 10.5% compared with the same period last year; and total profits amounted to only RMB 2.67 billion, plunging 54.4% year on year. The decline in profits widened further from the 44.9% drop reported in the first quarter, indicating that the industry’s profitability continues to deteriorate at an accelerating pace.

From a segment‑by‑segment perspective, the wood processing and the wood, bamboo, rattan, coir, and grass products industries are also under significant pressure. In the January–April period, these sectors recorded operating revenue of RMB 204.1 billion, down 14.9% year on year; operating costs totaled RMB 187.5 billion, a 14.7% decline; and total profits amounted to RMB 4.07 billion, down 22.8% compared with the same period last year. Both major industries closely linked to the home‑furnishings sector remain in a phase of deep structural adjustment.

This figure continues the downward trend that began at the start of the year. Looking back at the first quarter, the furniture manufacturing sector reported operating revenue of RMB 126.76 billion, down 9.6% year on year, while total profits stood at RMB 2.06 billion, a sharp 44.9% decline from the same period last year. Even then, analysts noted that furniture manufacturing had become one of the manufacturing industries experiencing the most severe profit contractions. By January–April, the decline in profits had widened to 54.4%, suggesting that April alone may have seen a year-on-year drop in industry profits exceeding 70%, further intensifying operational pressures across the sector.

From the perspective of industry dynamics, the furniture sector is currently exhibiting a typical structural pattern: export demand is recovering, while manufacturing faces mounting pressure. With end‑demand still far from fully rebounding, companies are adjusting prices to maintain order volumes; however, cost pressures—ranging from raw materials and labor to tariffs—have not eased in tandem, sharply squeezing profit margins. The industry has entered a phase of “trading price for volume,” with sector-wide profit margins now at historically low levels.

The upstream wood-processing sector likewise reflects the pressure of demand transmission. In the first quarter, the wood processing and wood, bamboo, rattan, coir, and straw products industries reported operating revenue of RMB 155.03 billion, down 12.5% year on year, and total profits of RMB 3.19 billion, down 12.4% year on year. The concurrent decline in both revenue and costs directly underscores weak downstream orders and sluggish market demand, with pronounced downward pressure cascading through the industry chain.

Notably, in stark contrast to the persistent slump in the furniture manufacturing sector, the overall profit growth rate of industrial enterprises above designated size nationwide is accelerating. From January to April, profits for these enterprises rose 18.2% year on year, an improvement of 2.7 percentage points compared with the January–March period. In April alone, profits increased by 24.7%, as industrial production maintained robust growth, industrial prices rebounded, and corporate profitability continued to improve.

Industry analysts believe that the furniture sector is rapidly entering a phase of survival of the fittest. As the new-home market continues to cool, demand is shifting from new‑home renovations to existing‑home remodeling and replacement of aging stock. However, this transition requires companies to undertake systematic adjustments across product portfolios, channel strategies, and service capabilities. In the short term, profit pressures are unlikely to ease, and the industry’s consolidation process may accelerate further.

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Editor: Si Yan