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

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

The Saudi Arabian furniture industry has become one of the most vibrant and fastest-growing industries in the GCC region. Some of the major factors driving the demand for the furniture industry in Saudi Arabia include increasing real estate development, rising demand for residential properties in the kingdom coupled with government initiatives for development for socio-economic infrastructure. Additionally, urbanization and development of the KSA economy have generated demand for furniture in hotels, offices as well as industrial sectors.

Furthermore, the kingdom is also witnessing an increase in foreign investors who are looking for expansion of their furniture product offerings across various emirates in Saudi Arabia.

The demand for luxury furniture has also increased in the Kingdom of Saudi Arabia, as it is perceived as an indication of wealth and social status. The preference for multi-utilitarian furniture has also increased due to the advantages offered by multi-utilitarian furniture such as fewer space requirements and multi-purpose purposes.

The furniture in Saudi Arabia is also making its way through online retailing. However, in recent years, many retailers such as Home center and IKEA have launched their online stores for the sale of furniture products.

Key Market TrendsGrowth in Construction Sector Boosting the Demand for Furniture Products

The Saudi Arabian construction market is currently growing rapidly and this growth is likely to increase further owing to factors such as Vision 2030, NTP 2020, and several other ongoing reforms going on the country to diversify from oil. Vision 2030, NTP 2020 and private sector investments are likely to be the growth drivers for the Saudi Construction Market.

Saudi Arabia's Vision 2030, together with significant investment by local authorities in housing and infrastructure development across the country, is revitalizing the construction industry and generating interest in a growing number of international players.

The urban construction sector is the largest contributor to the construction sector expansion in Saudi Arabia. The expansion in the construction market will also lead to an increased number of residential units in the country is likely to create demand for furniture products in the forecast period.

Home Furniture is One of the Dominant Category

The revenues generated from the sale of home furniture dominated the Saudi Arabia furniture market in 2018. The growing number of real estate development and increasing demand for residential properties is boosting the demand for home furniture products as people prefer to have new furniture items when they shift to their new houses.

Under home furniture, the majority of the sales are being witnessed under the living and dining room furniture segment, followed by the bedroom furniture segment. The Government of Saudi Arabia is also vigorously promoting ownership of residential properties in the country which will create more demand for the furniture products in the forecast period.

Competitive Landscape

The Saudi Arabian furniture market is highly fragmented with the presence of local as well as international players. Some of the major players in the market are Saudi Modern Factory, Riyadh Furniture Industries Company, Al Mutlaq Furniture, Al Aamer Furniture, and Al-Abdulkadber Furniture Company Ltd. Over the years, the competition between the domestic and international players has intensified owing to the increase in demand for furniture products in Saudi Arabia. Companies with a disruptive model like that of IKEA have acted as a significant threat to the unorganized sector. Organized players have been successful due to their high budget marketing campaigns and promotions which largely include the price reduction on MRP and high quality being offered at low cost. Some of the major competition parameters include a number of stores, pricing, and type of material used in furniture, product SKUs, online presence/distribution channel and others.

Additional Benefits:

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

Companies Mentioned
 
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