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Market Research Report

Middle East Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

Published Date :

2021-02-25

Report Pages :

265

Format :

PDF

Region Covered :

Middle East and Africa

Middle East Region Furniture Market Overview

Middle East Furniture market is projected to grow at a CAGR of 9.7% during the forecasted period. The furniture industry in the Middle East has reached its maturity stage with a double digit CAGR. Due to decrease in oil prices the furniture industry was unpleasantly hitting toward recession in the real estate sector. They were sudden changes in the industry due to this factor. The inclination towards multi –utilitarian furniture has also been growing in the recent years owing to minimal spaces demand. The ease of self-assembled furniture creates advantages for the consumers. Furniture and Wood companies account for 8% of the total number of industrial firms in Lebanon, comprising 368 companies.

 

Country

Share of Furniture Industry ‘s Market Value in the Middle East in 2014, By Country

Lebanon

34%

Saudi Arabia

18%

United Arab Emirates

9%

Qatar

7%

 

Middle East Region Furniture Market Segmentation

By Product Type

  • Seating’s
  • Sleeping’s
  • Storage
  • Accessories
  • Tables

By Material Used

  • Wood
  • Plastic
  • Metal
  • Glass
  • Leather

By Price Range

  • Mass Market Furniture
  • Premium/Luxury Furniture

By Distribution Channel

  • Online Distribution Channel
  • Offline Distribution Channel (Wholesalers, Retailers and Agents)

By Supply

  • Domestic
  • Imported

By End Users

  • Residential
  • Commercial

By Region

  • GCC {Market Share (%), Market Size (USD Billion), Sales (Million Units)}
  • Rest of Middle East and Africa {Market Share (%), Market Size (USD Billion), Sales (Million Units)}

Middle East Region Furniture Market Dynamics

Middle East Region Furniture Market: Growth Drivers

  • The hospitality sector investments in the Middle East are in abundance as governments diversify their economies and join private investors to develop major tourism related projects. This is the growing driver for the furniture industry. Such as IHFEX in 2007, is timely as it provides the platform for companies to start making inroads into this potentially lucrative market place.
  • The massive construction activities in the GCC region especially in Dubai that is driven by Expo 2020 related to infrastructure and projects –will continue to drive the demand for wood products and furniture in the coming years.

Middle East Region Furniture Market: Market Opportunities

  • A Growing Regional Furniture Market: The Middle East furniture market is expected to grow at a CAGR of 9.7% during the year 2019-2035. The furniture market in the region relies heavily on imports of brands leaving ample opportunities for Lebanese manufacturers to address this demand through specialization in high-end furniture design.
  • Strong Real Estate and Construction Sector: The real estate sector has always been one of the main backbones of the Lebanese economy accounting for 15.00% of total GDP in 2017. The real estate sector activity has significant spillover effects on other industries including wood and furniture manufacturing.

Middle East Region Market Segmentation Analysis

The region is divided into sector sectors, mainly the organized and the unorganized sector. The organized segment registers the market revenues as the retailers function under this segment deal with great quality and high design products produced by the solid wood or MDF during the recent years. The unorganized players are concentrated majorly on the price range, whereby incline to compromise on the quality of the product. The unorganized sector in the Middle East attained the remaining market share in terms of market revenue during the recent past years.

The unorganized players employ the labor and raw materials locally. The organized players in the Middle East Furniture market often get their furniture imported from abroad. The revenue that accrues from the sale of residential furniture is much more than any other segment. Bedroom furniture accounts for the maximum revenue during the recent past years and is projected to grow in the future during the forecasted period. Mattresses and the beds account for the maximum share in the growth over the duration. The Saudi Arabia furniture market effectively is extremely fragmented with the existence of domestic as well as worldwide players. Furniture in the several cost sectors, involving the mass market and luxury/premium furniture are designed by the retailers to attain the requirement of enlarging the customer base of all classes. Over the yester years, the Middle East furniture market is undergoing stiff competition among the domestic and international players which has expanded due to the requirements for the furniture products.

The corporates among the local and international players have positively shown that there is requirement for the furniture products in the Middle East region. IKEA and many retail chains acts as a threat to the unorganized sector. Construction boom represents opportunities for the industries particularly the wood industry. The increase in construction activities will continue to drive demand for wood products, wood based accessories, interior decor which will be needed for the new hotels and sites. The demand for wood, wood products and wood working industry is expected to grow due to the ongoing construction projects the value of which has reached USD 253.00 billion. The demand for wood is driven by new projects; hotel developers are facing a stiff competition from the branded hotels. The wood and furniture market seems very promising with 80 percent of the timber and wood products are used in construction industry.

Mergers and Acquisitions: Office Furniture Market

Nowy Styl Group is the European leader in office solutions has acquired Stylis Dubai. The company is going to furnish hotels in the Middle East as well as intensify the sales of chairs and office furniture in the region. The two companies have got into an agreement acquired 60.00% of the share of Stylis Dubai. The remaining 40.00% belong to the owner of Stylis who had its headquarters in Saudi Arabia. The partnership with Nowy Styl Group give the world new development and opportunities, wider solution of products enables functional and pleasing hotel furniture. The company is trying to meet the expectations of the clients. The new company relied on the ideas of Stylis .The Company has new portfolio of products from the company and is entering into the hotel industry. The company will equip them from basic standard rooms, through apartments, reception areas, lobbies, food courts, cafes and resturants.Both the companies will work together to keep their clients satisfied and expansion of the product portfolio has led to the expansion of its having new clients in its portfolio.

Players Specific Data (Product Launch, International and Domestic Players Dominance, Sales Distribution)

Product Launch

Middle East based company launched LEGNO, a comfortable wooden tables, wooden chairs, sofas and seating lounges. Intermetal is proud to launch this set of wooden products in the Middle East. Intermetal is a well -established brand - known for its complete hospitality furniture solutions for both indoor and outdoor use. To support the new initiative Intermetal has invested heavily coupled with latest technology to produce quality solid wood furniture which is unique in the region. The new factory is equipped with over 200,000 chairs and tables per annum. The Company is trying to expand its product portfolio by joining together new upcoming technology with the old ones to produce new products

Exports

The MENA countries, together, would rank 4th as an export market for the United States in 2008.U.S. goods exports to the MENA countries in 2008 were USD 66.8 billion, up 20 percent (USD 11.20 billion) from 2007. U.S. exports to the MENA countries account for 5.10 percent of overall U.S. goods exports in 2008. The top U.S. export markets in the MENA countries for 2008 were: United Arab Emirates (USD 15.70 billion), Israel (USD 14.50 billion), Saudi Arabia (USD 12.50 billion), Egypt (USD 6.00 billion), and Qatar (USD $3.10 billion).

Imports

The MENA countries, together, would rank 5th as the largest supplier of imports to the United States in 2008.U.S. goods imports from the MENA countries totaled USD 138.60 billion in 2008, a 35.70 percent increase (USD 36.50 billion) over 2006. U.S. imports from the MENA countries account for 6.60 percent of overall U.S. imports in 2008. The top U.S. import suppliers from the MENA countries for 2008 were: Saudi Arabia (USD54.80 billion), Israel (USD 22.30 billion), Iraq (USD22.10 billion), Algeria (USD 19.40 billion), and Kuwait (USD 7.10 billion).

Export and Imports Data

Importers

Value USD Billion

Market Share %

Exporters

Value USD Billion

Market Share %

United States

253.40

31.40%

China

26.70

31.70%

Germany

5.70

7.10%

Germany

7.50

8.90%

United Kingdom

4.80

6.00%

Italy

7.20

8.60%

France

4.20

5.20%

Vietnam

5.80

6.90%

Canada

2.90

3.60%

Poland

4.30

5.10%

Japan

2.60

3.20%

United States

2.90

3.50%

Netherlands

2.50

3.10%

Canada

2.80

3.30%

Switzerland

2.10

2.50%

Malaysia

1.80

2.20%

Australia

1.60

2.00%

Spain

1.51

1.80%

Austria

1.50

1.80%

Denmark

1.45

1.70%

 

Wood Exports and Imports by UAE to different countries

Exporting Country

Exports(USD thousand)

Product Share%

Importing Country

Imports(USD thousand)

Product Share%

Saud Arabia

394,182.19

1.82%

China

706,378.61

1.86%

Oman

324,092.54

3.15%

India

233,083.12

1.01%

India

171,259.96

1.33%

Saudi Arabia

212,166.32

2.80%

Kuwait

156,485.01

1.87%

Germany

211,567.65

1.93%

Iran

90,948.69

0.89%

United States

188,307.03

0.90%

Bahrain

90,179.72

2.04%

Indonesia

144,718.45

7.95%

Iraq

72,838.38

0.64%

Austria

139,221.41

11.51%

China

49,277.81

0.96%

Thailand

127,461.96

3.80%

Jordan

41,749.87

1.89%

Italy

126,114.95

1.90%

Somalia

39,174.21

3.82%

Malaysia

112,457.30

3.85%

Egypt

30,501.48

0.85%

Brazil

106,957.76

4.49%

 

Trade Balance

The U.S. goods trade deficit with MENA countries was USD 71.80 billion in 2008, a 54.30 percent increase (USD 25.30 billion) over 2007.

Furniture Market: Sales Distribution Data

25 best e-commerce sites in the Middle East which are in great demand.

Company

Average Traffic per Month

Position

Souq

7.45 million

1

Ounass

4.40 thousand Million

2

Amazon

676 Million

3

Awok

290 thousand

4

Basharacare

6.70 thousand

5

Letstango

18 thousand

6

Sharaf DG

249 thousand

7

Brands bay

1 Thousand

8

Shopia

3.50 thousand

9

Next

16.60 thousand

10

Namshi

516 thousand

11

Wadi

341 thousand

12

Carrefour

338 thousand

13

Wojooh

41 thousand

14

Noon

46 thousand

15

IKEA

68 thousand

16

Buy on Dubai

1.50 thousand

17

Gadget by

4 .00 thousand

18

Gear up me

5.20 thousand

19

Want it buy it

8.10 thousand

20

Wysada

2.40 thousand

21

Dubizzle

650 thousand

22

Sivvi.com

100 thousand

23

Branddose

< 100 thousand

24

Marosia

<100 thousand

25

 

The e-commerce user penetration in the Middle East region stood at 54.60% in 2018 and would grow to 58.80% by 2022. 29.00 percent of Middle East consumers now shop online every month. 36.00% of the Middle East shoppers between the age of 18-24 shop online and 13.00% of age 55 and above.60.00% of the Middle East online shoppers shop online with companies they feel they can trust whereas 32.00% of online shoppers remain loyal to their favorite retailers because they trust the brand.52.00% of the Middle East online shoppers use social media channels to rad the product reviews.56.00% of the Middle East online shoppers use their mobile device for shopping. Over 50.00% of the surveyed indicated they access internet for online shopping of which more than 80.00% said that they were highly satisfied with their online shopping experience.58.00% of the products that Middle East shoppers bought online were from overseas vendors.80.00% of the online shopping in the Middle East is done using cash on delivery.35.00% preferred furniture shopping online.

Online Platforms

Platform

No.of UAE Domains

Market share

Woo Commerce

390

39.35%

Magento

126

12.71%

Monster Commerce

110

11.10%

Open cart

65

6.56%

Shopify

44

4.44%

WIX

41

4.14%

Square space

32

3.23%

Prestashop

24

2.42%

VirtueMart

23

2.32%

Others

136

13.73%

 

Online E-Commerce Sales in the Middle East

Year

Value in USD billion

2016

USD 18.67 Billion

2017

USD 23.33 Billion

2018

USD 28.60 Billion

2019

USD 34.69 Billion

2020

USD 41.56 Billion

2021

USD 49.00 Billion

52.00% people who purchased a product  online. Total population is 252.00 million, 72.00% urbanization, Internet users are 164.00 million, 65.00 % is internet penetration, Active social media users are 130.00 million and 52.00% is internet penetration, 323.00 million are mobile connections and 128.00% population are mobile connection users, 115.00 million are active mobile social users and 46.00% penetration.

 

Country

Internet Penetration by Country

Bahrain

98.00%

Qatar

94.30%

UAE

90.60%

Jordan

80.00%

Kuwait

78.40%

Lebanon

76.10%

Saudi Arabia

73.80%

 

Payment Methods for online purchases

Category

Year

Cash on Delivery

64%

Credit Card

46%

Debit Card

11%

Direct Debit

9.00%

Store or gift card

3%

Digital Wallet

1%

 

Leading E-Commerce Platforms in the Middle East

Category Name

%

Souq.com

74%

Amazon

40%

Namsh.com

21%

Jumia

20%

Marka VIP

14%

Wadi.com

8%

Jado Pado

6%

Others

12%

 

Key Market Players of Middle East Region Furniture Market

The key players profiled in the report are 

  • Al Meera,
  • Al Jazeerah,
  • Al Mona,
  • Alno,
  • Al Noor,
  • Aran,
  • Blum,
  • Crestwood,
  • Dada,
  • Depa,
  • Fotile,
  • Haefele,
  • Haier,
  • Helmy Designs,
  • Ikea,
  • Kebao,
  • Kishwood,
  • Kouzinti,
  • Lube,
  • Meker,
  • Midas Trading,
  • Milano Furniture,
  • Mobilia,
  • Nolte,
  • NT Cuisine,
  • Oupai,
  • Sader Nama,
  • Schuller,
  • Scic,
  • Siematic,
  • Snaidero,
  • Universal Kitchen,
  • Valcucine,
  • Zubai

Our Report Covers:

  • The report includes Office Furniture Manufacturers, OEMs, Distributors & Brands Outlook (Market Competition & Regional Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers the Industry Insights (Future Trends & Forecast Data), Online Retailing and End User Analysis (Sales from Different End Use Sectors)
  • Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of United States Office Furniture Industry and further it bifurcated into States.
  • Sales Data of Office Furniture : By Each Product Type & Size, By End Users (B2B & B2C), By Brands, By Models, By Distribution Models, By Countries (Volume & Value), 2019-2035
  • Sales Outlook by Various Channels: By Channel Type (Stand-alone Stores, Flagship Stores, Brand Outlets, Multi-Brand Outlets, Specialty Outlets, Hypermarkets, Online Channels, etc.)
  • Manufacturing/Production of Office Furniture: By Manufacturers Type (OEMs, OBMs & ODMs), Production Data (By Machinery Type, By Countries), Manufacturing Capacity, Operational Margins, Distribution Analysis, etc.
  • Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, PESTLE Analysis, Pricing Patterns
  • Trade Data (Export & Import) : By Each Product Type & By Demand, 2019-2035
  • Supply & Demand Analysis, 2019-2035
  • Target & Potential Markets, By Major Countries
  • Middle East Region Smart Office Furniture Industry Outlook : Current & Future Outlook, 2019-2035
  • Middle East Region Office Furniture Industry Analysis (Manufacturers, Brands, New Products, Product Mapping, Investments, Pricing Pattern, Business Models, Annual Spending, Sales Channels Outlook, etc.)
  • The study provides an in-depth analysis with current and future trends to elucidate the imminent investment pockets in the market.
  • Current and future trends are outlined to determine the overall attractiveness of the market and single out profitable trends to gain a stronger foothold in the market.
  • Quantitative analysis of the current market and forecast from 2019-2035 is provided to showcase the financial competency of the market.
  • Drivers and opportunities are evaluated to highlight the top factors responsible for market growth. Various segments are carefully evaluated to gauge the potential of the market.
  • Porter’s Five Forces Model and SWOT analysis of the industry illustrate the potency of the buyers & suppliers participating in the market.

Competitive Outlook of major players of the Middle East Region market as well as local market to understand the current business scenario and to understand the complexity and investment related factors




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Middle East Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

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