site.btaFurniture Chamber Head to BTA: Sector's Businesspeople Optimistic about 2025

Bulgarian furniture makers are optimistic about the sector's economic condition in 2025. Unofficial data from the Chamber of the Woodworking and Furniture Industry (CWFI) show that the overall output of the national furniture industry in 2024 roughly equalled that of 2023, when the production of furniture (exclusive of mattresses) totalled USD 556 million. In 2025, furniture prices are expected to increase gradually in pace with inflation and under labour market pressure to raise employees' wages, CWFI Management Board Chairperson Vasil Zhivkov told BTA in an interview.

Zhivkov shared his thoughts ahead of Expomebel, a furniture show which will be held in Sofia between February 18 and 21.

Industry outlook

"The industry is set to have an interesting year in 2025," Zhivkov commented. He noted that forecasts for Western Europe indicate incipient slight recovery in the sector as loan rates go down and home buyers borrow more money than before. Zhivkov explained that home purchase loan rates have a direct impact on the furniture industry.

"If it happens in Europe, it will certainly be felt in Bulgaria because a sizeable portion of our output is exported," the expert said. "Construction in Bulgaria is rather brisk at present, and even if the furniture industry begins to shrink, the shrinking will not become notable until after another year at least."

He stressed that Bulgaria finally has a regular government after a political crisis which lasted more than three years. This change is expected to have a positive impact on the economy, including the furniture industry.

Zhivkov does not think that Bulgaria's planned accession to the euro area will push furniture prices up, but he does not rule out some traders trying to increase their prices. As for the country's full membership of the Schengen free travel zone, which became a fact on January 1, 2025, he said it was good news for all export-oriented furniture suppliers as transport costs decreased and the movement of goods was facilitated.

Discussing new markets, the CWFI chief said Bulgarian furniture companies continue to expand into the markets of the United Kingdom, the Middle East and the United States. Bulgarian furniture can be seen in Africa as well.

The price factor

"Prices of materials have returned to normal, and energy costs stay more or less within the same limits, but Bulgarian furniture prices are encumbered by a constant rise in staff wages," Zhivkov said. The sector finds it increasingly hard to recruit skilled employees, and overall, it is experiencing an acute labour shortage. To compete successfully with the foreign companies operating in the country, Bulgarian employers increase workers' pay, which makes for higher production costs.

Local furniture businesses actively recruit workers from third countries, mainly the former Soviet republics and some Asian countries. "One of the advantages of employing such workers is that they come to Bulgaria to earn money for their families and are willing to work more to earn more. Their remuneration is not any different from that of Bulgarian workers, but foreigners have stronger motivation to work and are ready to work overtime because it is important for them to know they will receive extra pay. This is far less often the case with Bulgarian workers," Zhivkov said.

"Wood prices are coming off their peak levels but are still higher than the market would like," he went on to say. "This is partly a matter of political decisions because, in Bulgaria, wood prices are not regulated by the market alone." In earlier years, when wood was in short supply and its price was increased manipulatively, furniture companies stopped buying it from local sources and turned to external suppliers. "Currently, local forestry companies are failing to fulfill their plans, they are working at a loss, no one is buying the timber in their warehouses, but they still keep their prices up," Zhivkov said.

He recalled that multinational packaging and paper group Mondi, which absorbed about 10% of the wood harvested in Bulgaria, closed its local operation, which means even more trouble for the Bulgarian forestry sector as it is unable to sell its output.

Expomebel

Over 100 furniture brands will be featured at the Expomebel show at Sofia's Inter Expo Centre, February 18-21, Zhivkov said. Exhibitors will display furniture for homes, offices and hotels, including cabinet furniture, upholstered furniture, mattresses, bed frames, tables, chairs, office and garden items, design solutions and interior textiles.

Two sets of awards will be presented on the sidelines of the fair: Bulgarian Furniture of the Year and the Dibla Design Awards, the latter of which recognize the best interior design projects.

In April, eight Bulgarian companies will take part in the Milan Furniture Fair with the support of the Bulgarian Small and Medium Enterprises Promotion Agency.