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Market Research Report

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

Published Date :

2021-02-12

Report Pages :

237

Format :

PDF

Region Covered :

Saudi Arabia

Saudi Arabia Furniture Market Outlook Overview

Saudi Arabia furniture market is one of the most vibrant markets in the GCC region. Rising infrastructure, increasing demand for residential property along with government initiatives develop socio-economic infrastructure is driving the whole Kingdom of Saudi Arabia. The rising interest of foreign competitors towards the kingdom to expand their business opportunities and develop their product portfolio by doubling their revenue in driving the furniture market in the Kingdom of Saudi Arabia and different Emirates too. It is anticipated that demand for furniture will grow at CAGR of 8.7% during the forecasted period. The furniture industry of the Saudi Arabia has reached its maturity by adversely got a hit due to declining oil prices and recession in the economy. Higher disposable income in the hands of people leads to changing lifestyle which may in turn lead the demand for furniture in the country. Revenue from Furniture segment is forecasted to be USD 98.00 million in 2020. The market volume is about to reach USD 112 million by 2024.

Contract Furniture in Saudi Arabia- The contract furniture market in Saudi Arabia is estimated to be USD 744 million for the year 2019. Local government initiatives and foreign investments are the main key drivers driving the furniture market in Saudi Arabia. The manufacturer of wooden furniture claims the maximum share but the presence of steel and metal made furniture are also increasing simultaneously. The contract furniture demand in the country is analyzed and differentiated by major sectors: hotels, restaurants, airports, banks, education and public offices etc.

Rising demand for Luxury Furniture: Revenue derived from tourism increased from SAR 58.00 billion in 2004 up to SAR 194.00 billion in 2017 indicating significant increase in tourism and hospitality segment. In 2018, the capital city had an expected demand for 9000 rooms along with an occupancy rate of 65.00%. The demand grew by 25.00% from 7200 rooms demanded in 2017.Upcoming hospitality projects such as the Red Sea Development project attracts a number of foreign players including the hotels. Demand for luxury furniture is in great demand. Saudi Arabia hospitality providers will indulge in high quality and premium furniture which will cast a statement for their visitors.

Saudi Arabia Furniture Market Segmentation

By Product Type

  • Seating’s
  • Sleeping
  • 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

By Supply

  • Domestic
  • Imported

By End Users

  • Commercial
  • Residential

By Region

  • Riyadh {Market Share (%), Market size (USD Million)}
  • Jeddah {Market Share (%), Market size (USD Million)}
  • Mecca {Market Share (%), Market size (USD Million)}
  • Medina {Market Share (%), Market size (USD Million)}

Saudi Arabia Furniture Market Dynamics

Saudi Arabia Furniture Market: Growth Drivers

  • Increased investment by the Government which has dominated the economic activity in the country drives demand for commercial and private sector to encourage the furniture companies to increase their expansion of the private sector.
  • The growing hospitality industry which is traditionally strong in the country in and around the cities of Mecca and Medina with an annual mixture of pilgrims. The country tries to meet the demand by providing proper facilities. In the later years, Construction has become a big sector in the Saudi Arabian market. This is the growing driver behind the furniture industry.
  • Vision 2030 is acting as a catalyst in fueling the social economic revolution in Kingdom of Saudi Arabia, promoting the private sector the tools and manages businesses and consumers effectively. It is a sustainable growth path for maintaining the growth in the economy.
  • Change in the Furniture Purchasing Power Preference of People: Increase in nuclear families and rising internal migration of Saudi Arabia due to job requirements will require easily assembling and multi-purpose furniture. 76.00% of the homes in Riyadh are considered nuclear as compared to 67.00%of nuclear households in 1997. Retailers who can provide furniture such as sofa cum bed, retractable dining tables, convertible desks and chairs are demanded by the people of Saudi Arabia.

Saudi Arabia Furniture Market: Market Trends

  • There is huge demand for furniture (indoor, outdoor, and office furniture) which should be of finest quality. The trend is to develop and deliver the finest furniture across the region.
  • Changing preferences of people moving from bulky furniture to light weight furniture drives opportunities for the players to expand their business in the region.

Saudi Arabia Furniture Market: Market Opportunities

Changing preferences of the people, drifting from huge bulky furniture to convertible and light weight may lead the player’s entry in the region. The players may get an opportunity to double their business and revenue, thereby generating employment in the country. They can also expand their product portfolio by seeing to the preference of the consumers in the country. This can lead to a stiff competition among the players.

Saudi Arabia Furniture Market: Market Challenges

The consumer demand for furniture keeps changing because of the young demographic population coupled with high smart phone penetration. The players may face stiff  competition from the local vendors.

Saudi Arabia Furniture Market Segmentation Analysis

By Material Type, Wood is one of the most desired materials used in the Saudi Arabian furniture. It is considered to be cheap, durable and widely available. There is a strong demand for wood in the construction sector as well as in households and offices furniture which is driving the demand for wood and wood products, crossing USD 2.90 billion in 2017.By Product Type, there is huge demand for sofas, convertible dining tables; desks which are portable are demanded by the people of Saudi Arabia. By end Users Type, growing investments in residential and commercial construction in emerging economies such as Saudi Arabia have further propelled the demand for wood market. Rapid urbanization fueled by increase in green buildings is major factors enhancing the demand. The commercial sector dominates the market in Saudi Arabia.

Mergers and Acquisitions: Furniture Market

Formed in 1912 as the Metal Office Furniture Co., a safe maker, Steelcase is the charter member of the contract furniture industry's billion dollar club. Steelcase has been very aggressive in starting and acquiring companies over the last 10 years. The following is a partial list of transactions that Steelcase entered into from 1987-1997 in Saudi Arabia. In 1988, the Grand Rapids, MI-based company acquired Atelier International of Long Island, NY, and completed a Stow & Davis plant expansion. In 1989, it acquired two office furniture refurbishing companies and, through its joint venture partner in Europe, acquired four European office furniture companies. In 1991, the company acquired highly-regarded architectural millwork company, Wigand Corp. of Colorado. In 1990, it acquired Interior Woodworking Corp., a custom architectural and Millwork Company, and launched a new company, Details. In 1991, the company organized into five business units: Seating, Freestanding Systems, Panel Systems, Wood Furniture, Filing and Case Goods.

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

Product Launch

Steelcase launched the new collection called Umami collection which comprised of the new technology components that can link into a variety of configurations. The sculpted design of having a reclined back angle provides comfort to the workers. People find a connection to work and can work for longer hours. Informal spaces attract social interactions , stimulate the brain and enhance creativity.

International and Domestic Players Dominance in Furniture Market

Aflak Group is serving customers across Middle East. Today it is one of the leading Electronics & Furniture players in Saudi Arabia. One of the fastest growing Electronic Companies Aflak has grown multi-fold in the last 19 years

Largest Companies

Revenue

Midas

USD 183.60 million

Saudi Modern Factory Co

USD 6.00 million

Al sharq Furniture

USD 3.00 million

High Moon Office Furniture

USD 38.40 million

Hoshan Co .Limited

USD 600.00 million

Al Sharq Furniture

USD 3.00 million

Habitat Furniture Co Limited

USD 60.00 million

Riyad Furniture Industries

USD 3.00 million

 

Furniture Market: Sales Distribution Data

The retail market in Saudi Arabia to grow at an annual growth rate of 7.45% during the period 2017-2020.The government has moved on in order not to rely solely on revenues from fuel as the global energy market dynamics is changing and demographics of the country is expected to enter the transition phase with an increasing number of working-age Saudi Arabians by 2030. One of the main characteristics of the retail market is the high demand for luxury products. In 2016, the total value of Saudi retail sales was estimated at about USD 41.80 billion, with almost 50% of imported products. The total value of retail food sales is forecast to reach approximately USD 46.60 billion in 2020.There are three main commercially active regions in the Kingdom: the Western Region, with the city of Jeddah as the main commercial center; the Central Region, including the capital Riyadh; and the Eastern Province, where the oil and gas industry is concentrated.

The KSA has shown a keen interest in online shopping, with approximately 12.9 million e-commerce users in 2018 and an expected increase of 6.34 million by 2022. The e-commerce fashion segment is a clear winner for majority of the shoppers, with individuals between 25 and 34 accounting for half of all orders. To name a few hypermarkets in Saudi Arabia are Hyper Panda, Othaim Supermarket, Danube Supermarket, Bin Dawood Supermarket, Carrefour Saudi Arabia, Al Sadhan Supermarket, Nesto supermarket, Lulu, Manual Hypermarkets. Saudi Arabia, with its 33.6 million inhabitants, has the third largest population in the Middle East after Iran and Iraq. It also has the second largest internet user population that reaches 24.10 million (Internet World Stats), with a penetration rate well above the regional average at 72% (as opposed to 57.80%).

Moreover, Saudi internet user’s account for 16.40% of total digitally connected populations in the Middle East. Internet penetration growth is expected to grow at a rate of 6.90% to 73.50% by 2022. As far as search engines are concerned, Google dominates the industry with a 97.10% market share, followed by Bing at 1.30% and Yahoo at 1.19% . The Saudi e-commerce market has enjoyed steady growth in recent years, with turnover increasing by 11.00% on average, according to the Ecommerce Foundation. Total e-commerce revenue across all product categories was USD 6.13 billion in 2017, and is expected to grow to USD 9.41 billion by 2021. The market, with its 12.94 million users (50% of all internet users), is one of the largest across the MENA region and is expected to continue its growth in the upcoming years, at a slower rate than the global average 6.34 million. Additional Internet users are expected to shop online, putting the number of e-shoppers at 19.28 million by 2022 (accounting for 54% of total population). With such a growth rate both in turnover and number of online shoppers, Saudi Arabia is expected to surpass the United Arab Emirates as the top e-commerce market in the Middle East. While Saudi Arabia ranks 46th on worldwide, it has the third highest score in the Middle East after the UAE and Israel.

Cross-border trade is significant, especially within the regional context, with UAE-based websites leading international shipments to Saudi Arabia. 65.00% of all online purchases were made from websites based in Gulf Cooperation Council countries and Noon.com, based in the UAE but owned 50.00% by Saudi Arabia Public Investment Fund, launched a local version of its website in Saudi Arabia at the end of 2017 and is expected to contribute to the share of domestic online shopping. Souq.com (which was recently purchased by Amazon), as well as Amazon Global and Aliexpress are among the most visited e-commerce websites in Saudi Arabia. The market is dominated by big retail groups, as only 5% of SMEs use e-commerce in addition to traditional sales mediums, according to the Saudi Communications and Information Technology Commission. Unlike Emirati e-commerce, with which the Saudi e-commerce shares many similarities, fashion products lead online sales in Saudi Arabia. In 2017, total revenue generated by the fashion industry stood at USD 1.91 billion, followed by electronics & media at USD 1.85 billion.

The online fashion market is expected to grow at an average of 20% between 2018 and 2021 and continue to lead the e-commerce market with an estimated value of USD 3.08 billion by 2021, while the electronics & media category is set to maintain a slower growth rate and reach USD 2.66 billion in the same year. The footwear segment is forecast to have the highest growth within the fashion market during this period (average annual growth of 28.30%). Saudi online shoppers are rather frequent buyers, as 23.00% of e-commerce customers purchase a product at least once every two weeks, while only 3.00% buy less frequently than every six months, according to the Saudi Communications and Information Technology Commission. Overall, 19.00% of male and 27.00% female Internet users are considered 'heavy buyers', purchasing online at least once every two weeks. That rate is particularly significant among those under 30, as 29% of all internet users in that age group shop online at least once every two weeks. As far as product categories are concerned, games, consoles, music, film, event tickets and travel services are purchased mostly online. In fact, online purchases were reported to drop by 13.00% in the last four years, according to the Ecommerce Foundation. Saudi online shopping is also characterized by the prevalence of cash-on-delivery (comprising between 69% and 85% of online orders according to various estimates), while e-wallets such as PayPal, Amazon Payments and Google Wallet account for 24% of all purchases

Saudi Internet users are active on social media and spend on average 2 hours 55 minutes per day (behind the UAE and Israel that lead social media consumption in the region). Saudi Arabia has a total of nearly 19.00 million social media users (59% of total population and 79% of internet users) and 16 million of them also access their social media accounts via mobile (Hoot suite Survey 2017). Almost all social media users are reported to have a Facebook account (nearly 19 million) and 45% of them access the platform daily. As in most other GCC countries, What Sapp is used by a large amount of internet users (88% of total - 21.20 million people). Twitter and Snap chat register their highest usage rates in Saudi Arabia across the MENA region, with 40% and 45% of social media consumers using these platforms. Twitter with 7.6 million users and Snap chat with 8.50 million. Despite decreasing popularity, the Japanese-owned Line is used by 20% of Internet users (4.80 million people), the highest rate by far in the Middle East, according to Mideast Media Survey 2017. Saudi social media users are among the most engaged ones in Arab countries, with 90% of all users posting messages or comments on social media and 88% via direct and instant messaging (second highest rate after the UAE).

Trade Statistics

Exporting Country

Value

Importing Country

Value

China

USD 26.70 billion

United States

USD 25.40 billion

Germany

USD 7.50 billion

Germany

USD 5.70 billion

Italy

USD 7.20 billion

United Kingdom

USD 4.80 billion

Vietnam

USD 5.80 billion

France

USD 4.20 billion

Poland

USD 4.30 billion

Canada

USD 2.90 billion

United States

USD 2.90 billion

Japan

USD 2.60 billion

Canada

USD 2.80 billion

Netherlands

USD 2.50 billion

Malaysia

USD 1.80 billion

Switzerland

USD 2.10 billion

Spain

USD 1.51 billion

Australia

USD 1.60 billion

Denmark

USD 1.45 billion

Austria

USD 1.50 billion

 

Fastest Growing Exporting countries to Saudi Arabia

Value

Fastest Growing Importing countries to Saudi Arabia

Value

Bermuda

$390,000

Central African Republic

$4.10million

Cambodia

$7.80 million

Northern Mariana

$1.50 million

Seychelles

$259,000

Gambia

$13.00million

Cayman Islands

$1.30 million

Comoros

$10.80 million

Cook Islands

$27,000

Iran

$85.40 million

Cabo Verde

$667,000

Cocos

$62,000 million

Br. Indian Ocean Terr

$88,000

Senegal

$83.10 million

Liberia

$285,000

Togo

$14.90 million

Algeria

$173,000

Vietnam

$241.80 million

Sao Tome/Principe

$307,000

Pakistan

$28.50 million

 

 

Foreign Trade Indicators

2013

2014

2015

2016

2017

Imports of goods(million USD)

168,155

173,834

172,252

139,390

130,825

Exports of goods(million USD)

375,873

342,299

201,739

174,919

218,174

Imports of Services(Million USD)

51,745

62,683

56,520

71,159

53,508

Exports of Services(Million USD)

11,308

11,962

13,807

15,958

17,336

Exports of goods and services

0.20

-1.90

0.70

8.0

-3.20

Imports of goods and services

30.80

33.80

38.80

30.70

28.10

Trade Balances

222,557

183,995

44,265

55,764

N/A

 

Main Trade Partners Countries

Main Customer (% of Exports)

2018

Main Supplies(% of Imports)

2018

China

3.30%

China

16.50%

United Arab Emirates

2.80%

United States

13.30%

Singapore

1.40%

United Arab Emirates

8.90%

India

1.20%

Germany

5.40%

Belgium

0.80%

India

4.20%

Turkey

0.80%

Japan

4.00%

Kuwait

0.70%

France

3.40%

Egypt

0.70%

South Korea

3.20%

Bahrain

0.60%

Italy

3.10%

United States

0.60%

United Kingdom

2.30%

 

Main Services

Exports

%

Imports

%

Travel

69.53%

Government Services

28.19%

Transportation

19.33%

Travel

26.13%

Government Services

4.32%

Other business Services

8.78%

Financial Services

3.59%

Construction Services

7.74%

Computer and Information Services

1.71%

Computer and Information Services

3.84%

Insurance Services

1.39%

Insurance Services

2.20%

Other Business Services

0.13%

Transportation

21.87%

 

Latest News in Furniture Market

The Saudi Arabian e-commerce furniture is anticipated to surpass USD 26.00 billion by the end of 2026.The market is mainly driven by increasing mobile penetration, advances in technology such as big data and artificial intelligence. Convenience is the main driver of the general development of the online shopping industry in the hot weather of Saudi Arabia. Using search engines and applications, it is simpler to navigate through different product classifications. Consumers find it difficult during their hectic timetable to visit retail shops. E-commerce shopping enables customers to shop for 24 hours sitting in-home or at the office. Besides, door-step delivery of the product is produced to remove transportation problems. Payment methods are dominated by E-Wallet and cards in Saudi Arabia.

Competitive Landscape of Saudi Arabia Furniture Market

The companies profiles in the report are

  • Abdullah & Nasser Al Sorayai Co.,
  • Al Abdulkader Furniture Co Ltd,
  • Al Ajmi House Furniture (Royal Matresses&Divans),
  • Al Garousha Factory,
  • Al Joaib Furniture Factory,
  • Al Kaki Wooden Furniture Factory,
  • Al Makateb Co Ltd,
  • Al Watan Furniture & Water Cooler Factory,
  • Alf Noon Kitchen,
  • Alismail Est. for Office System,
  • Aljazira Furniture Factory,
  • Al-Kadi Decorative Steel Works & Wooden,
  • Almona Kitchens,
  • AlOmair Furniture Factory,
  • Ayar,
  • Bokhamssen Furniture Factory,
  • Fouad & Khalid Al Ansari Company,
  • Jeraisy Furniture Factory,
  • Modern Furniture Factory,
  • National Est. for Metal & Chrome Furniture,
  • Riyadh Furniture Industries,
  • Seating & Office Systems Industries Ltd,
  • Steelcase Jeraisy Ltd,
  • Tanah United Company Ltd

For a full detailed overview, send here request for market report sample.

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), 2016-2024
  • 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, 2017-2025
  • Supply & Demand Analysis, 2017-2025
  • Target & Potential Markets, By Major Countries
  • Saudi Arabia Smart Furniture Industry Outlook : Current & Future Outlook, 2017-2025
  • Saudi Arabia 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 2017-2025 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 Saudi Arabia 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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Saudi Arabia Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

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