site.btaChamber of Woodworking President Zhivkov: Furniture Sales Rise, Prices Fall as Bulgarians Eye Eurozone

Approaching eurozone membership and an active property market are prompting more Bulgarians to buy furniture, Branch Chamber of Woodworking and Furniture Industry President Vasil Zhivkov said on Sunday.

Zhivkov noted that furniture prices have fallen by nearly 6% this year, with no sharp increases expected through early 2026.

The industry is creating opportunities for design engineers, technologists, designers, and production staff. This year, the University of Forestry enrolled 160 new students in three furniture-related programs, up from approximately 125-130 last year.

This growth indicates promising opportunities in woodworking, furniture manufacturing, and interior design, as more young Bulgarians enter the sector. Last year, approximately 30 students graduated from both the Technology of Wood and Furniture and the Computer Technologies for Furniture Industry programs, with total numbers rising to 40–50 when including part-time students. Annually, around 10–15 new master's degrees are awarded, and about 30 students graduate from Engineering Design.

Zhivkov pointed out the continuous demand for skilled professionals, particularly outside Sofia, where numerous companies experience a significant shortage of engineers. Entry-level gross salaries for engineers in Sofia typically range from BGN 2,500 to BGN 4,000, while in other regions they range from BGN 2,200 to roughly BGN 3,500. Highly skilled assembly workers can earn net salaries of BGN 2,500 or more, surpassing the earnings of some engineers.

The furniture industry continues to depend on workers from countries like Azerbaijan and Kazakhstan, as well as on interest from Far East nations. Ukrainians are also employed, but staff turnover remains high, with some workers moving to Western Europe shortly after signing contracts with Bulgarian companies. Zhivkov noted that the recruitment process requires improvement to mitigate this problem.

Bulgaria currently has 2,200 to 2,300 furniture companies. Nearly 90% are small or micro-enterprises, a few percent are medium-sized, and about 1% are large, according to Zhivkov.

Industry data indicate a 4.9% year-on-year decline in furniture production in 2024, which Zhivkov considers to be within normal fluctuations. Exports decreased by 1.7%. However, the domestic market saw a 12-13% rebound through July, which Zhivkov views as a positive outlook for 2025.

Export prices for Bulgarian-made furniture dropped significantly by 42%, indicating stagnation in Western markets and contributing to weaker performance among local companies. In contrast, domestic sales continue to benefit from a strong property market and optimism surrounding potential eurozone accession, which Zhivkov expects could support sales through the rest of the year. He also observed that anticipation of price increases prior to eurozone entry is encouraging consumers to buy home furnishings sooner.

According to the National Statistical Institute, Bulgarian furniture prices decreased by 5.7% year-on-year as of July 2025, after rising 35% during the COVID-19 pandemic. Zhivkov attributed the earlier sharp price increases to both subjective and objective factors, such as supply shortages and elevated energy costs during the pandemic. He rejected claims of cartel activity in the industry, arguing that Bulgaria’s fragmented market prevents price-fixing.

He also noted stable material and electricity prices, aided by the growing number of companies producing their own power. Zhivkov believes that if prices were to rise, wages would be the primary driver, as they are currently somewhat higher than productivity levels justify.

In response to the potential increase in US tariffs on furniture imports, the industry recently submitted a formal letter to European Commission President Ursula von der Leyen requesting intervention. Although there has been no response so far, Zhivkov is hopeful that the current 15% tariff cap on EU exports will be maintained. The majority of Bulgarian furniture exports are destined for EU countries and the United Kingdom, with only limited shipments to the United States.

At the beginning of the school year, demand is increasing for student furniture such as desks, chairs, and cabinets. Many kindergartens and schools have updated their interiors with products from Bulgarian manufacturers. During the summer, demand for garden furniture typically rises.

Zhivkov noted that Bulgarians most commonly replace chairs, sofas, tables, wardrobes, and children's room furniture. Kitchen furniture is updated less frequently because of its complexity.

A recent trend in Bulgarian-made bookcases is the incorporation of glass doors in various tints, grey, beige, or smoked, with slim aluminium frames and integrated lighting. Upholstered furniture is increasingly covered with fabrics, as manufacturers introduce more breathable, stain-resistant, and easy-care materials. Zhivkov noted that customers prefer fabric upholstery for its comfort, and some fabric products now have greater durability than those made with synthetic leather.