Malaysia’s wooden furniture exports to Europe are defying expectations. Building on a strong 20% export increase in 2024, Malaysian shipments rose another 22% in Q1 2025, according to the latest data from the International Tropical Timber Organization (ITTO). The country exported 24,000 tons to the EU27 + UK during the first quarter, firmly positioning itself behind only Vietnam among tropical wood suppliers to Europe.

This growth reflects a broader resurgence in tropical timber furniture exports. After a challenging 2023, Vietnam, Malaysia, and India all posted double-digit gains:

• Vietnam: +8% to 161,000 tons in 2024; +23% to 58,000 tons in Q1 2025

• India: +10% to 81,000 tons in 2024; +19% to 19,000 tons in Q1 2025

• Malaysia: +20% to 87,000 tons in 2024; +22% to 24,000 tons in Q1 2025

In contrast, Indonesia and Brazil saw declines in 2024 (–7% and –5% respectively) but returned to growth in early 2025, with Indonesia rising 11% to 17,000 tons and Brazil up 13% to 13,000 tons.

European Market Recovery Strengthens

Across the EU, tropical wood furniture imports rebounded across nearly all major economies:

• UK: +23% to 41,200 tons

• France: +13% to 21,300 tons

• Germany: +11% to 16,800 tons

• Netherlands: +5% to 12,400 tons

• Spain: +48% to 10,400 tons

• Belgium: +13% to 6,800 tons

• Poland: +59% to 3,500 tons

• Ireland: +28% to 3,000 tons

• Italy: +22% to 2,800 tons

• Denmark: steady at 3,600 tons

Despite broader global fluctuations, Europe continues to hold a dominant role in the furniture industry. In 2024, the total value of the European furniture market approached USD 125 billion, representing more than 25% of global demand. Unlike the United States—which outsources heavily to Asia and Mexico—Europe still sources about 80% of its furniture domestically.

Yet, external imports also surged. Wooden furniture imports from outside the EU rose 17% in 2024, reaching USD 6.64 billion. The U.S. (+7%), UK (+5%), Australia (+15%), and Canada (+2%) also reported import gains. On the flip side, intra-EU trade volume dropped slightly (–3.2%), as did imports from Japan and Switzerland (–2% and –3%, respectively).

Southeast Asia Tightens Its Grip

The global rebound has reinforced Southeast Asia’s role as the world’s wooden furniture production hub. In 2024:

• China led with exports of USD 15.6 billion (+17%)

• Vietnam followed at USD 11.2 billion (+18%)

• Malaysia recorded USD 2 billion (+8%)

Vietnam has emerged as the most significant growth story, with a 40% export increase between 2019 and 2024. In contrast, China’s exports fell 6% over the same period, although it remains the largest exporter globally.

While "reshoring" has become a hot topic in Europe and the U.S., the ITTO notes no substantial evidence that production is returning to traditional hubs like the U.S., EU, or Japan. The future of manufacturing realignment will depend on narrowing labor cost gaps, advancements in automation, regional supply chain development, and the growth of custom, fast-turnaround manufacturing.

For now, Southeast Asia remains firmly in control of the world’s furniture supply chain.