Italy’s furniture industry, long a benchmark for global design and craftsmanship, is navigating a moment of sharp adjustment.
As China’s economy and real estate sector cool, demand for European luxury goods has softened, with ripple effects from Milan’s showrooms to export figures worldwide.
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Yet amid declining Chinese orders and tariff pressures from the U.S., Italy’s wood and furniture supply chain is proving more resilient than headlines suggest.
The implications reach all the way to design-conscious destinations such as the Italian Riviera.
Italy’s Furniture Exports Under Pressure
The latest data from FederlegnoArredo, Italy’s main wood and furniture association, reveals how closely the sector is tied to global economic cycles.
Exports to China dropped 9.9 percent in the first nine months of 2025, down to 320 million euros.
For a market that recently seemed insatiable for Italian luxury interiors, this marks a notable correction.
These figures accompanied the second Milan Design (Eco) System report, released by Salone del Mobile.Milano in collaboration with Milan’s Politecnico University.
The report underscores how the furniture sector sits at the crossroads of design, sustainability, and geopolitics.
Stable Overall, Despite the China Slowdown
While the Chinese slump makes headlines, the broader picture is more nuanced.
Italy’s overall wood and furniture supply chain exports actually edged up by 0.4 percent year on year, reaching 14.2 billion euros.
This suggests that manufacturers—many of them family-run firms in design hubs across northern and central Italy—are adapting by diversifying markets and sharpening their value proposition.
For travelers walking through Milan’s design districts or stepping into curated hotel lobbies along the Ligurian coast, this balance between vulnerability and resilience is subtly visible in the spaces themselves.
Spaces remain impeccably styled, but increasingly conscious of cost, sourcing, and long-term sustainability.
Key Markets: Mixed Signals From the U.S. and Europe
Beyond China, Italy’s top export destinations are giving mixed signals.
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Exports to the United States slipped 1.6 percent to 1.5 billion euros, while shipments to France fell 1.7 percent to 2.2 billion euros.
Only Germany bucked the trend, posting a modest 0.8 percent increase in Italian furniture imports.
Industry insiders note that part of the early-year export activity was shaped by companies seeking to pre-empt trade barriers.
According to FederlegnoArredo president Claudio Feltrin, many firms front-loaded shipments in anticipation of pending tariffs.
Tariffs and Luxury Slowdowns
Tariff policies are a key concern.
U.S. duties on European goods—capped at 15 percent under trade measures introduced during President Donald Trump’s administration—remain a structural headwind.
For high-margin but price-sensitive luxury furniture, even small increases in costs can influence buyers’ decisions, especially in markets already slowing.
Consultancy Bain and luxury association Altagamma forecast that Chinese luxury spending will contract by 3 to 5 percent this year at constant exchange rates.
For Italian brands that invested heavily in Chinese showrooms and flagship spaces, this means recalibrating strategies and focusing more on resilient or emerging markets.
Looking to South America: The Mercosur Opportunity
With established markets under pressure, Italian industry leaders are turning their attention to new frontiers.
A key focus is the long-discussed EU–Mercosur trade agreement, which would open up broader access to South American economies.
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Brazil, in particular, is seen as a major opportunity: large, design-conscious, but highly protected.
Furniture makers hope that swift EU approval of the deal could reduce barriers and compensate for weaker demand in China and parts of Europe.
Why Trade Policy Matters to Travelers
Trade agreements might seem distant from the experience of sipping an aperitivo on an Italian piazza, but they shape the hospitality world visitors actually encounter.
When Italian brands thrive abroad, they reinvest at home—renovating hotels, restoring historic buildings, and elevating the design standards of everything from boutique B&Bs to coastal resorts.
For travelers who appreciate interiors as much as landscapes, understanding these forces adds depth to every Italian stay, whether in Milan’s chic neighborhoods or in sun-drenched seaside towns.
From Milan Design Labs to Ligurian Coastal Living
Italy’s furniture and wood sector is not an abstract export machine; it is the creative heartbeat behind many of the country’s most memorable spaces.
Nowhere is this more tangible than along the Italian Riviera, where Italian design meets Mediterranean light and centuries-old architecture.
In Genoa, grand palazzi turn into boutique hotels furnished with contemporary pieces made in Lombardy and Veneto.
Wander the narrow caruggi (alleys), and you’ll often find restored interiors where classic frescoes sit alongside minimalist Italian lighting and bespoke wooden cabinetry.
Design-Rich Destinations Along the Italian Riviera
From west to east, the Riviera is a living showroom of how Italy’s furniture and design culture shapes travel experiences:
Here is the source article for this story: Exports of Italy’s Wood Industry to China Slid 9.9 Percent in First 9 Months of 2025
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