Recently released data from the National Bureau of Statistics shows that in 2025, industrial enterprises above designated size nationwide achieved total profits of 7,398.20 billion yuan, up 0.6. percent year on year, with overall operations ending the year steadily. However, focusing on the home furnishing manufacturing sector, pressure remained throughout the year. In 2025, the furniture manufacturing industry achieved operating revenue of 612.51 billion yuan, down 10.7. percent year on year, and total profits of 32.81 billion yuan, down 12.1. percent year on year. Although the decline in profit narrowed at year-end compared with the first 11 months, the foundation for profitability recovery remains unstable.

From the market perspective, cyclical adjustment in the real estate market has blocked the transmission of downstream furniture demand, and the recovery pace of retail and engineering channels has failed to keep up with the broader market. Against the backdrop of intensified price competition, rigid expenditures on raw materials, labor, and channel operation costs have severely squeezed enterprises' profit margins.

The upstream industrial chain is also undergoing deep adjustment. In 2025, operating revenue of the wood processing and wood, bamboo, rattan, palm, and grass products industry fell 14.6. percent year on year, while total profits dropped as much as 38.3. percent. The profit decline upstream far exceeded that of the manufacturing end, indicating that overall demand recovery across the industrial chain has not yet formed strong support and inventory digestion pressure remains huge.

Industry insiders pointed out that the home furnishing industry is at a critical stage of transformation from scale-driven growth to efficiency-driven growth. Although short-term pressure remains heavy, product innovation, operating cost reduction, and deep cultivation of the existing market will still be the core levers for outstanding enterprises to move through the cycle and seek breakthroughs.

Source: China Timber Industrial Parks and Ports Working Committee