At the end of the German monarchy, the Grand Ducal Majolica Manufactory passed into the possession of the state of Baden but it still remained faithful to its artistic standards. Architects and sculptors were very interested in working with the Manufactory. Setting up studios for master artists proved to be essential for preserving artistic quality. In 1924, during the Great Depression, the state of Baden took charge of the company and had to intervene several times to prevent the “Staatliche Majolika-Manufaktur Karlsruhe AG” (National Majolica Manufactory Karlsruhe Inc.) as it is now called, from closing down permanently.
During the Nazi period, modern artistic motifs were replaced by traditional ones. Apart from ceramics for usage and decoration the Manufactory also produced busts of Hitler, the imperial eagle of the Third Reich, and the swastika. As a result, the Manufactory experienced a great economic growth.