The Saudi Arabia Furniture market
was valued USD6.40 billion in 2022 and is projected to register a CAGR of 8.46%
through 2028 and is anticipated to project robust growth in the forecast period.
The Saudi Arabia Furniture market is growing at a robust rate owing to rapid
change in purchasing pattern, growing construction industry, and rising preference
for customized furniture. Furthermore, the rising home ownership and growing demand
for smart as well as luxury furniture is significantly contributing to the Saudi
Arabia Furniture market growth.
Saudi Arabia Furniture Market
Scope
Furniture is referred to as
moving items that are used to create a space appropriate for living or working.
Sofa sets, tables, chairs, desktops, bunk beds, workstations, wardrobes, etc.
are all examples of furniture. Different types of furniture, including home,
office, institutional, and hospitality furniture are included in Saudi Arabia
furniture market. Further, the market has been divided based on raw materials
used, such as wooden, metallic, plastic and others (bamboo, cane, etc.). Based on
point of sale the market is divided into offline and online.
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Saudi Arabia Furniture Market
Overview
The foreign home interior
platforms are growing their services in the entire country, which is also a
component in the market's ongoing growth. For example, the Indian omnichannel
home interior platform Livspace expanded its services to the Middle East in
2021, beginning with Saudi Arabia where it had established a joint venture with
the Alsulaiman Group. (ASG). Additionally, the company announced USD 25 million
investment in the joint venture ASG, which serves as the nation's operating
partner for the Swedish furniture store Ikea.
The expanding hospitality
industry is also a significant component in expansion of Saudi Arabia furniture
market growth. The country's furniture market has been impacted by the
country's expanding tourism sector. Saudi Arabia saw a surprising +121% growth
in foreign tourism in July 2022 compared to July 2019 according to the United
Nations World Travel Organization (UNWTO) Barometer. Moreover, the nation's
furniture sales have increased because of the fast expansion of hotel
development projects. This element is anticipated to have a positive impact on
the growth of the furniture market.
Saudi Arabia Furniture Market
Drivers
The Saudi population is
replacing its furniture more frequently these days, hence the cycle of
furniture replacement has gotten shorter with time. The demand for upgradation
of furniture has increased at a faster rate. Consumers in Saudi Arabia have
spent USD 50.95 million on furniture in the first week of July 2022. People
upgrade their furniture more frequently and replace their furniture due to
increased disposable income. Thus, increasing demand for customized furniture
will drive the Saudi Arabia Furniture Market.
Saudi Arabia has experienced
a major increase in demand from construction activities over the past few
decades due to increased foreign investment and the country's furniture sector
is also playing a significant role in this market's expansion. Expenditures on
commercial, residential, hotel, and industrial real estate projects, for
instance, have increased nationwide. The construction industry in Saudi Arabia
experienced its strongest quarterly growth in the second quarter of 2022. This
tremendous construction boom is also increasing Saudi Arabia's demand for
furniture.
Additionally, the government
has introduced several initiatives to promote home ownership and housing
development operations. This is encouraging people to purchase homes, which is
increasing furniture sales across the country. Additionally, several Saudi
Arabian finance companies are now extending their benchmark mortgage maturity
in an effort to promote home ownership. For instance, the baseline for
mortgages in the nation was extended to a 30-year term in 2021, according to a
statement from The Saudi Real Estate Refinance Co (SRC). Thus, with the
increasing home ownership, the demand for furniture will grow at faster rate.
Saudi Arabia Furniture Market
Trends
The increasing demand for
Ready-to-Assemble (RTA) furniture has been observed in the Saudi Arabian
furniture market due to their affordable
prices and compact designs. The booming market for real estate and other factors,
as well as discretionary expenditure on home furnishings, are fueling the
demand for Saudi Arabia furniture Market. They are built from lightweight
materials like chipboard and medium-density fiberboard. RTA furniture also has several
additional benefits that make it practical to use, like it is simple to
disassemble and move , requiring less storage and transportation cost. Such
factors will drive the market in forecast period.
Saudi Arabia's increasing
internet penetration, which rose to over 97.9% in 2021, has had a substantial
impact on market growth. The young people of Saudi Arabia prefer combination of
foreign furniture designs and the internet's
furniture ideas to make their furniture in order to change the
aesthetics of their houses. Customers can get customization on furniture's based
on their preferences and comfort. Based on customization, the product and the home
aesthetics can be modified in a unique way. As a result, this aspect is
expected to boost the country's furniture market during the projection period.
Saudi Arabia Furniture Market
Challenges
Currently, there is a huge
demand-supply gap in the Saudi Arabian furniture market because of the
country's severely underdeveloped and inefficient wood products industry. The
demand for foreign brands is increasing
because domestic furniture manufacturers occasionally run out of raw
materials and components.. Additionally, the government is always working to
reduce its dependency on imports in the forecast years. For instance, the
government increased the customs charge on import of furniture, which went into
effect on June 10, 2020, to stop foreign items from entering the nation. Thus,
a combination of problems including increased customs fees and a lack of raw
materials is a challenge for the expansion of the Saudi Arabia furniture market.
Market Recent Developments
- In 2022, Home
Centre announced the opening of new stores in Makkah and Hail with the
objective of providing furniture and coordinated accessories. Additionally, several
platforms are providing users with innovative services in an attempt to increase
their customer base.
- In 2021, Online
platform Tamara introduced its "Split in 6" function for IKEA online
purchases placed there in Saudi Arabia. Customers can get IKEA products online
and extend their payments into six installments without paying interest or any
other fees. Additionally, several international companies are entering the
Saudi Arabian market, which will accelerate market expansion.
Market Opportunities
- The hospitality
and institutional furniture market in Saudi Arabia has witnessed the fastest
rate of expansion among all furniture types, with a CAGR of more than 11.41%
during the forecasted period. This growth is attributed to reasons including
Saudi Arabia's expanding tourism and educational sectors. According
to Saudi Central Bank's data total spending on tourism in Saudi Arabia,
including that of tourists and residents, increased by 52 percent to USD25.5
billion in 2021. Therefore, furniture companies in the
country can focus on providing a variety of hospitality furniture to maintain
their competitiveness in the Saudi Arabia furniture industry.
- The market for
furniture is rapidly increasing demand for technologically enhanced furniture.
The demand for smart beds, tablet coffee tables, charging lamps, and sideboards
that change color etc., is increasing at a faster rate. Modern furniture is significantly
more sophisticated and functional, such as advanced sofa sets with USB ports so
that customers can charge their smart devices. Companies like Arabian
Furniture & Design Co., Bakri Furniture, and a few more offer smart
furniture, including smart beds, smart office chairs, smart tables, etc. Thus, furniture
companies can focus on enhancing product innovation and development to capture
market.
Market Segmentation
The Saudi Arabia furniture
market is segmented by type, raw material, point of sale, and region. Based on
type the market is segmented into home furniture, hospitality &
institutional furniture, and office furniture. Based on raw material the market
is divided into wooden, metallic, plastic and others (bamboo, cane, etc.). Based
on point of sale the market is divided into offline and online.
Company Profiles
Arabian Furniture and Design
Co., Al-Mutlaq Furniture Co (Saudi Arabia), IKEA Saudi Arabia. Ghassan Ahmed Al
Sulaiman Furniture Trading Co. ltd, Midas Furniture Manufacturing L.L.C, Al
Jedaie Office Furniture Company, Riyadh Furniture Industries Co., The Saudi
Modern Factory Co., Al Jeraisy Furniture Factory, Al Sharq Al Masiya Trading
Company, and Al-Makateb Co. Ltd. are some of the are some of the major players
in the Saudi Arabia Furniture market.
|
Attribute
|
Details
|
|
Market
Size Value in 2022
|
USD
6.40 Billion
|
|
Revenue
Forecast in 2028F
|
USD10.36
Billion
|
|
Growth
Rate
|
8.46%
|
|
Base
Year
|
2022
|
|
Historic
Data
|
2018 –
2021
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024
– 2028
|
|
Quantitative
Units
|
Value in USD Billion,
CAGR for 2018-2022 and 2023-2028
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
|
Type
Raw Material
Point of Sale
Region
|
|
Regional
scope
|
Western,
Northern & Central, Eastern, Southern
|
|
Key
Companies Profiled
|
Arabian
Furniture and Design Co., Al-Mutlaq Furniture Co (Saudi Arabia), IKEA Saudi
Arabia. Ghassan Ahmed Al Sulaiman Furniture Trading Co. ltd, Midas Furniture
Manufacturing L.L.C, Al Jedaie Office Furniture Company, Riyadh Furniture
Industries Co., The Saudi Modern Factory Co., Al Jeraisy Furniture Factory,
Al Sharq Al Masiya Trading Company, and Al-Makateb Co. Ltd.
|
|
Customization
scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and purchase options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report Scope:
In this report, Saudi Arabia Furniture market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Saudi
Arabia Furniture Market, By Type:
- Home
Furniture,
- Office
Furniture
- Hospitality
& Institutional Furniture
- Saudi
Arabia Furniture Market, By Raw Material:
- Wooden
- Metallic
- Plastic
- Others
(Bamboo, Cane, etc.)
- Saudi
Arabia Furniture Market, By Point of Sale:
- Saudi
Arabia Furniture Market, By Region:
- Western
- Northern
& Central
- Eastern
- Southern
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in Saudi Arabia Furniture market.
Available Customizations:
With
the given market data, TechSci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).