Report Overview

The growing population, rapid urbanization, and e-commerce and tourism industries are projected to propel the expansion of the Saudi Arabia Furniture Market during the forecast period between 2023 and 2029.

Saudi Arabia Furniture Market - Industry Trends & Forecast Report, 2029

Saudi Arabia Furniture Market size was estimated at USD 6.4 billion in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia Furniture Market is projected to grow at a CAGR of 9.48% reaching a value of USD 11.02 billion by 2029. Major growth drivers for the Saudi Arabia Furniture Market include increasing real estate development, a rising demand for residential properties, and government initiatives promoting socio-economic infrastructure. Urbanization and the expansion of the Saudi Arabian economy are driving the need for furniture in various sectors, including hotels, offices, and industries. Foreign investors are increasingly exploring opportunities to expand their furniture product offerings across different emirates in Saudi Arabia. Also, there is a rising demand for luxury furniture in the country, signifying wealth and social status. Multi-functional furniture is also gaining popularity due to its space-saving advantages and versatility. Notably, the Saudi Arabian furniture market is adapting to online retailing, with major retailers like Home Center and IKEA launching online stores to meet evolving consumer preferences.

Saudi Arabia Furniture Market – Overview

The Saudi Arabia furniture market experiences ongoing growth, fueled in part by the expansion of foreign home interior platforms across the country. Notably, Livspace, an Indian omnichannel home interior platform, entered the Middle East market in 2021, commencing operations in Saudi Arabia through a joint venture with Alsulaiman Group (ASG). Livspace further invested USD 25 million in the ASG joint venture, which acts as the operational partner for Ikea. The flourishing hospitality industry is also instrumental in the market's expansion, with the country's robust tourism sector witnessing a remarkable +121% growth in foreign tourism in July 2022 compared to July 2019. The surge, coupled with extensive hotel development projects, contributes to increased furniture sales, presenting a positive outlook for the market's growth.

Saudi Arabia Furniture Market

Growth Drivers

Growing Population and Urban Development

The expansion of the construction market in Saudi Arabia, propelled by strategic programs such as Vision 2030 and NTP 2020, mirrors the upward trajectory of urbanization and the burgeoning population in the kingdom. The emphasis on housing and infrastructure projects is in harmony with the urban construction sector, playing a pivotal role in the overall growth of the construction industry. The upswing is expected to lead to a substantial increase in residential units, thereby fostering a heightened demand for furniture products across Saudi Arabia. The concerted efforts toward urban development and housing initiatives underscore the transformative impact on the furniture market in response to evolving demographic and construction trends.

Restraints

High Inflation Rate

The Saudi Arabia Furniture Market faces a significant challenge with a high inflation rate acting as a restraint. The high inflation factor complicates market dynamics by influencing consumer purchasing power and overall affordability. The surge in inflationary pressures can impede the growth of the furniture market as it affects pricing structures and impacts consumer spending behavior. Major players in the Saudi Arabia Furniture Market need to navigate and mitigate the effects of the high inflation rate to maintain competitiveness and sustain growth amid economic fluctuations in Saudi Arabia.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Furniture Market

The Saudi Arabia Furniture Market has been significantly impacted by intensifying geopolitical tensions in recent times. For instance, the ongoing Russia's war on Ukraine has disrupted supply chains and hindered the production and distribution of wood products and timber. It has prompted a surge in global furniture prices as companies seek alternative sources for controlled timber, coupled with increased fuel and labor costs, intensifying the challenges faced by the furniture market. In addition, the sanctions imposed on Russia by the United States and other countries have the potential to redirect and interrupt the global shipment of forest products, posing a threat to established international trade routes. Meanwhile, calls for economic disengagement from Russia by furniture industry leaders may affect investments potentially reshaping relationships with suppliers and influencing the global furniture market dynamics. In addition to the conflict in Ukraine, the long and spread of Israel-Hamas war could further escalate geopolitical tensions across the Middle East. These disruptions could impede the industry's ability to introduce new materials, technologies, and design concepts, emphasizing the need for strategic adaptation and resilience in navigating these complex circumstances. In essence, these geopolitical tensions introduce uncertainties and challenges across various dimensions of the furniture market, highlighting the imperative for strategic adaptation and resilience in navigating these intricate circumstances.

Despite the current challenges posed by geopolitical tensions, there are potential growth opportunities for the Saudi Arabia Furniture Market. The heightened awareness of vulnerabilities in supply chains due to these tensions may incentivize industry stakeholders to invest in more resilient and diversified models within the furniture sector. The disruptions in traditional approaches to furniture retail and trade could drive innovations, fostering a shift towards more adaptive and efficient practices.

Saudi Arabia Furniture Market

Segmental Coverage

Saudi Arabia Furniture Market – By Product

Based on product, the Saudi Arabia Furniture Market is divided into Beds, Tables & Desks, Sofa & Couch, Chairs & Stools, and Cabinets & Shelves segments. The beds segment is expected to hold the highest share in the Saudi Arabia Furniture Market by product during the forecast. Bedroom furniture encompasses a diverse range of decorative elements, including beds of various sizes and shapes, mattresses, wardrobes, nightstands, and dressers. In the Saudi Arabian furniture market, bedroom furniture contributes over 19% to the overall revenue, exhibiting consistent growth. The preference for apartments in cities, particularly in the residential segments of apartments and villas, fuels the increasing demand for bedroom furniture. Additionally, post-COVID-19 recovery has led to a resurgence in the hospitality sector, contributing to a renewed demand for bedding and bedroom furniture.

Saudi Arabia Furniture Market – By Application

Based on application, the Saudi Arabia Furniture Market is bifurcated into Residential and Commercial segments. The residential segment holds a higher share in the Saudi Arabia Furniture Market by application. The expanding real estate landscape, coupled with a growing demand for residential properties, propels the need for home furniture products, as individuals often seek new furnishings when transitioning to new residences. Within the residential furniture sector, significant sales predominantly occur in the living and dining room furniture segment, closely trailed by the bedroom furniture segment. Government initiatives actively promoting property ownership in Saudi Arabia further contribute to the robust demand for furniture products in this segment, making it a dominant force in the market.

Saudi Arabia Furniture Market – By Material

Based on material, the Saudi Arabia Furniture Market is divided into Metal, Wood, Plastic, and Glass segments. The wood segment holds the highest share in the Saudi Arabia Furniture Market by material due to its enduring popularity, versatility, and cultural significance. Wood is a preferred choice for furniture production, embodying durability and timeless aesthetic appeal. The cultural and historical significance of wooden furniture, coupled with its ability to adapt to various styles, makes it a staple in Saudi Arabian homes. Additionally, the segment's prominence reflects the enduring consumer preference for classic and durable furniture materials, contributing to wood's sustained leadership in the market.

Competitive Landscape

Major players operating in the Saudi Arabia Furniture Market include Saudi Modern Factory Company, Riyadh Furniture Industries Company, Al-Abdulkader Furniture Co. Ltd, Al-Mutlaq Furniture, Al Aamer Furniture, Habitat Furniture Co. Ltd, and International Furniture. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2023 - Baytonia, a Saudi Arabia-based online furniture marketplace, completed its initial undisclosed seed funding round. Khwarizmi Ventures (KV) spearheaded the funding, and angel investors also joined in the investment. Baytonia intends to utilize the newly acquired funds to enhance its customer experience and services. The company aims to broaden its range of products, extending its footprint in the home furniture market across Saudi Arabia.

Scope of the Report

By Product

• Beds

• Tables & Desks

• Sofa & Couch

• Chairs & Stools

• Cabinets & Shelves

By Application

• Residential

• Commercial

By Material

• Metal

• Wood

• Plastic

• Glass