High Prices and Empty Factories. How Global Inflation is Reshaping the Furniture Industry in 2026

Brought to you by THE FURNITURE SHOP by SALMAN BROTHERS – they want to keep you informed about the market trends that affect your home and wallet.

The global furniture industry is in trouble. After things seemed okay for a while after the pandemic now the industry is facing a lot of problems. The cost of materials is going up very fast there are problems with getting things from other countries and people do not have as much money to spend on furniture. This is not a normal change in the economy. 2026 Is the start of a big change in the furniture industry. If you think furniture is expensive now just. See what happens next. For businesses like THE FURNITURE SHOP by SALMAN BROTHERS it is a struggle to survive and adapt.

The Macro Reality

The global furniture industry seems to be getting a little. After two years of decline global furniture production was $470 billion in 2024.

International trade in furniture has grown by 25% over the 10 years and it was about $174 billion in 2024. In the US the price of furniture and beds went up 4.0% from the year as of January 2026 and it has been going up for two months in a row.

There are problems in Europe and North America. The demand for furniture is weak and inflation is still high. This means the industry is under a lot of pressure.

Input Cost Crisis

The biggest problem is with the cost of materials. The prices of these materials are going up fast:

Foam is up 10-20%

Plastic products are up 30%

Metal hardware is up 25-30%

Paints and adhesives are up 40% in some places

Timber and engineered wood panels are still expensive because people are not buying as many houses

The reason for this is a combination of things. There are problems in the Middle East that have made oil prices go up. This has made energy prices go up by 19% this year which is a change from what people thought would happen.

In India things are even worse. One person in the industry said it is " chaos. The price today is different from the price tomorrow". The price of foam has gone up 120% which makes it very hard for businesses to plan. Even big companies like THE FURNITURE SHOP by SALMAN BROTHERS are having trouble quoting prices to customers because the prices of materials are changing every week.

In Europe the situation is similar: "The cost of materials is going up at the time. Important materials like MDF, solid wood, foam and paint have gone up 15-20% in months. This is because it takes a lot of energy to make these things and the supply chains are under pressure."

Consumer Pullback & Trade Wars

While the cost of materials is going up people are not buying as much furniture. Inflation is making it hard for people to afford big-ticket items like sofas and dining tables.

In the US people who do not have a lot of money are buying furniture and the companies that make promotional furniture are suffering. Older people are spending 35% less on their homes and even rich people are cutting back 5%.

The housing market is also slow: "High mortgage rates and people not wanting to move are making it hard for people to buy furniture". The growth in the home furnishings market is because of prices not because people are buying more.

The US has also put tariffs on some imported furniture:

25% on wooden furniture and kitchen cabinets

10% on softwood timber and lumber

There was a plan to increase the tariff to 30% on upholstered items and 50% on cabinets but it was postponed

Chinese timber products have a very high tariff, which makes it hard for them to sell in the US. Vietnam is now the exporter of furniture to the US which is a big change.

Globally the trade outlook is not good: "The global furniture trade will not grow much. About 2% in 2025 and it will be slow in 2026".

Regional Impacts

Asia-Pacific is still the producer of furniture but China is having problems: "The profit of the industry went down 40% in the first two months of 2026".

North America is having trouble with tariffs and a slow housing market, which makes it hard for people to buy furniture.

Europe is still struggling with energy costs and unstable demand and many manufacturers are adding a fuel surcharge. Factories in Asia are also increasing their prices.

The Big Picture Outlook

So what does this mean?

CSIL thinks that the global furniture market will recover slowly in 2025 and 2026.

The global furniture trade will not grow much. About 2% in 2025 and it will be slow after that.

The US market may get a little better. It depends on what the government does and how the housing market is.

The biggest unknown is inflation, tariffs and energy prices. They are the normal.

For now the only thing that is certain is that things are uncertain. Whether you are a manufacturer a local retailer like THE FURNITURE SHOP, by SALMAN BROTHERS or a family who wants to buy furniture it is very important to stay informed and be flexible. We will keep you updated on how the global economy affects the furniture industry.