GCC Furniture Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

GCC Furniture Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GCC furniture market is expected to witness strong growth during the forecast period, owing to factors, such as the rising population and increased construction activity. The furniture industry has become one of the most vibrant and fast-growing industries in the GCC region. The growing number of real estate developments and the increasing demand for residential properties, along with governmental initiatives to develop socio-economic infrastructure, are some of the major factors fuelling the demand for furniture products in the region.

Foreign players are also investing heavily in the region, either to increase their presence or to expand their businesses in these countries, thereby, further boosting the GCC region's furniture industry. Furniture consumption is also rising due to a positive trend in construction activity. This generates a demand for furniture, both for residential and non-residential uage. The local furniture production is relatively lesser in the GCC market, and thus, the region meets its requirements thorough the imports of foreign products.

The countries in the GCC region are heavy importers of furniture, with the majority of the imports coming from countries, like China, Italy, Turkey, Germany, the United States, Poland, and Malaysia.

Saudi Arabia and the United Arab Emirates host the biggest furniture markets in the region, with the United Arab Emirates relying on re-exports of furniture products and Saudi Arabia relying completely on the domestic consumption of furniture products.

Key Market TrendsSaudi Arabia is One of the Fastest-growing Furniture Markets in the GCC Region

Saudi Arabia has the largest construction market in the GCC region, accounting for nearly 33% of the total market share in the area. Due to the rising population and urbanization, the construction sector of the country is expanding. Increasing real estate development and the rising demand for residential properties in the region, along with the governmental initiatives to develop socio-economic infrastructure, are fuelling the growth of the furniture industry in Saudi Arabia.

The continuous development of new housing units, coupled with a rise in the young and growing population of the country, is increasing the demand for furniture products. Additionally, urbanization and the development of the KSA's economy have generated a significant demand for furniture in the residential areas, hotels, offices, and industrial sectors. This is expected to grow further, in the coming years.

The Expanding Construction Sector is Driving the Market

The real estate sector has a significant effect on the furniture industry. The GCC region hosts one of the fastest-growing real estate markets across the world. Demographic changes, hosting of mega-events, tourism, and the influx of expatriates over the last few years are some of the major growth drivers for the real estate sector. Although the GCC region may have witnessed an economic slowdown, due to fluctuations in the oil market, the region is still witnessing increased investments.

Due to the increase in real estate activities in the region, the construction sector is expanding rapidly, mainly being driven by government-backed investments. The construction industry is witnessing a growth rate of nearly 5%, Y-o-Y, in the region, with increasing residential and commercial property developments. This rapid expansion in the construction sector will boost the demand for furniture products.

Competitive Landscape

The market is highly competitive and comprises both local and international players. The market is fragmented, with the presence of players, such as IKEA, Pan Emirates, Home Center, Homes R Us, Royal Furniture, and Danube. Most of the furniture products in the country, such as home furniture products, are primarily imported and retailed through large-format showrooms, like IKEA. The furniture producers are slowly making their way through online retailing, across the GCC region. Some of the online furniture stores in the region are Ebarza, The Bowery Company, HomeBox, and LifeInteriors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Russell Hobbs Inc.
Proctor Silex
Philips
Meyer Coroporation
KitchenAid
Hamilton Beach Brands
Haeir
GlenDimplex (Morphy Richards)
Robert Bosch GmbH
Whirlpool Corporation
Dyson Ltd
Groupe SEB
Stanley Black & Decker Inc.
Kenwood Limited

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