Challenges and Opportunities in the Made in Italy Furniture and Design Sector

My name is Ilaria Sangalli, Head of Intesa Sanpaolo’s Industry Research.

In this episode I present the main challenges and opportunities in the Made in Italy furniture and design sector.

The Made in Italy furniture sector represents a manufacturing excellence. In 2025, revenue reached 26.7 billion euro, confirming Italy as the leading European producer, ahead of Germany and France. The contribution of foreign markets and the strong presence in the domestic market enabled the sector to maintain solid resilience, even within an economic context that had already become challenging following the introduction of tariffs.

The trade balance of the Italian furniture sector remained strongly positive in 2025, around 8.4 billion euro, despite a slight decline in exports. The contribution of European markets was crucial—especially Germany, the United Kingdom, and Spain—alongside the growth in sales in non-European markets, notably the Gulf countries, Turkey, and Canada, which entered the Top 10 destinations for Italian furniture exports in 2025. The United States, while remaining the second-largest export market, was negatively affected by exchange rate dynamics and tariff tensions. Moreover, the Asian market was only a limited growth driver in 2025, as China continued to experience weak domestic demand.

Industrial districts made a significant contribution to the sector’s performance, generating 83% of the total trade surplus in 2025 (6.9 billion euro). Their strong ability to adapt to market conditions will once again be crucial for addressing the challenges of 2026.

Faced with a complex geopolitical environment and moderate growth prospects, the diversification of export markets will be a key success factor, with a focus on countries experiencing strong income growth and on the new network of relationships created by the European Union's trade agreements. This will be even more important in light of a domestic market affected by inflationary pressures stemming from the conflict in the Middle East, with impacts on income and consumption that, in the case of the furniture sector, will be only partially offset by the strong performance of real estate and tourism.

To enter new markets and maintain strong competitiveness in key export destinations, Italian furniture companies can rely on their high product quality, driven by investments in design and innovation. Italian furniture accounts for 9.2% of global high-end furniture exports and reaches nearly 24% in the kitchen segment.

Managing the complexity of the current scenario also means continuing to invest in the dual transition—energy and digital—in order to address the significant volatility in energy, commodity, and transportation costs. Our internal surveys highlight that Artificial Intelligence, Cybersecurity, and Energy Self-Generation are among the top investment priorities for companies in 2026.

To carry out their investment plans, furniture companies will be able to rely on solid financial resources, with EBITDA margins remaining at historically high levels and, in our scenario, expected to stay above pre-Covid levels even in 2026, despite the negative impact of tariffs and the additional costs generated by the conflict.

In 2025, the Made in Italy furniture sector reached a turnover of €26.7 billion, confirming Italy's position as the leading European producer, ahead of Germany and France.

European markets continue to absorb a considerable share of Italian furniture exports. At the top is France, followed by Germany, the United Kingdom, and Spain.

Non-European markets are also growing. Alongside the United States (the second largest destination market overall, after France) and China, which were not very dynamic in 2025, notable growth is seen in the Gulf countries, Turkey, and Canada, which entered the Top 10 destinations for Made in Italy furniture in 2025.

Market diversification will be essential, targeting countries with strong income growth and leveraging trade agreements established by the European Union.

Italian furniture accounts for 9.2% of global high-end furniture exports, rising to nearly 24% in the kitchen segment.

Investment priorities focus on Artificial Intelligence, Cybersecurity and self-produced energy, as part of the broader energy and digital transition.