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Market Research Report

U.A.E (United Arab Emirates) Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

Published Date :

2021-02-16

Report Pages :

341

Format :

PDF

Region Covered :

UAE

UAE Furniture Market Overview

The furniture industry is an important industry in the UAE , more than 600 furniture factories are in operation representing 13.00% of the total number of industries in the UAE and the capital investment in the UAE furniture industry is around 1 Billion AED representing 1.20 % of the total investment in manufacturing. The furniture industry contributes 3.60% to the manufacturing GDP. UAE Furniture market is expected to register positive CAGR of around 5.60% during the period 2019-2035. Rise in number of online market players catering to the demand for wooden products and accessories are expected to have positive impact on the overall revenue of UAE furniture market. The furniture industry of UAE is expected to grow at a positive CAGR from 2019-2035 with the increase in nuclear families, rise in demand for residential apartments. The UAE region will witness an increase in the expat population owing to the stability in oil prices in the near future. The development of key projects like Caesars Palace, Fairmont and others will lead to the development of the tourism industry. It was observed that the demand for high-end luxury furniture items has increased over the years. Furniture items which entail heavy fabric and leatherwork were more preferred by the people of the region. The country has become the leader in furniture production with more than 600 furniture manufacturing units in operation in the country. Apart from this, the UAE furniture industry investment was worth more than USD 270.00 million last year. This figure represents around 1.20% of the total manufacturing sector investment in the country. The significant sectors where furniture is being used in bulk include hospitals, schools, institutions, offices, hospitality and industrial set ups

UAE Furniture Market Segmentation

By Product Type

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

By Material Used

  • Wood
  • Metal
  • Plastic
  • Glass
  • Leather

By Price Range

  • Mass Market
  • Premium /Luxury Furniture

By Distribution Channel

  • Online
  • Offline

By Supply

  • Domestic
  • Imported

By End Users

  • Residential
  • Commercial

By Region

  • Dubai
  • Abu Dhabi
  • Sharjah

UAE Furniture Market Dynamics

UAE Furniture Market: Growth Drivers

Boost in the real estate sector causes an increase in demand for furniture. The change in the lifestyle of the UAE residents creates high demand for furniture business; Expo 2020 is predicted to boost the growth of the furniture industry. Infrastructure expansion in the United Arab Emirates has accelerated, with higher levels of occupancy in residential apartments, resulting in an increase in demand for indoor/outdoor furniture, which is in line with the upcoming World Expo 2022 being held in Dubai. The market is offering slim options to meet consumer need for space-saving options, which have seen growth in demand as individual residential areas keep shrinking in urban settings. Initial estimates of the impact of Expo 2022 is a growth of 1.50 percentage points per year on Dubai’s real GDP between 2014 and 2020, leading to annual growth of 5.50 %

Increasing Competition among Furniture Manufacturers and Retailers: The furniture market of the UAE region is highly competitive owing to the rising demand of furniture and furnishing products. This rise in demand has led to the growing domestic demand and emergence of multiple players catering to the same target audience in the space. Manufacturers and retailers operating in the region compete on almost same grounds of quality of the product and the material used to manufacture the product. New entrants into the market find it hard to compete with established companies in terms of matching the quality offered by established firms at cheap prices due to their continuous operations, which has led to economies of scale.

UAE Furniture Market: Market Opportunities and Trends

Rising population and urbanization are increasing the construction sector of UAE. The country aims to increase the contribution of its construction section to its overall GDP from 5.00% in 2017 to nearly 10.00% by 2030. The domestic production of the country in terms of furniture production is relatively low; hence, the country mainly imports its furniture requirement especially for the household sector. The rising interest and investment of foreign players either to increase their presence or to expand in different emirates is further boosting the home furniture industry in UAE.

UAE Furniture Market Segmentation Analysis

Furniture retail remains positive over the next five years, bolstered by strong demand in domestic markets totaling USD 13.20 billion across MENA in 2014. This is largely driven by Saudi Arabia, which has the largest retail market for furniture in the region. Furniture is a key contributor to manufacturing in MENA although with very different profiles between countries. The largest demand market, KSA is also the largest producer in the region with USD 2.70 billion of furniture locally manufactured, which makes the country reliant on imports for less than 30.00% of their domestic demand. The UAE in comparison, while having furniture production pockets in Sharjah, relies on imports for close to 50% of the demand. Driven by high demand particularly in the GCC, luxury furniture retailers are entering the MENA market while increased demand for customized products has driven collaboration between renowned international and MENA designers. Design events in the region have acted as a catalyst to regional innovation in furniture design. Organized furniture retailers in UAE have faced substantial competition not only from the unorganized sector but also from different types of stores within the organized market. The organized furniture market comprises of company showrooms (exclusive or franchise), SIS format stores and destination stores. Exclusive showrooms and franchise outlets of specific brands have witnessed a higher footfall owing to high brand awareness and customer satisfaction, whereas on the other hand destination stores possess furniture products of different products under one roof. The living room furniture dominated the UAE residential furniture market revenues. This was followed by a bedroom, dining room, kitchen, other indoor furniture, storage furniture, and home office furniture.

By Living Room: Sofa Sets captured the majority share in living room furniture items. The sofa sets are available in materials of velvet, leather and a mixture of silk and cotton.

By Bedroom: The growing population and the influx of expatriates in UAE have led to an increase in demand for a number of residential spaces across the region. The sales of bedroom furniture, therefore, increased to cater to the expanding customer base for furniture market retailers in the country. Revenues from the sale of mattresses dominated the market revenues for bedroom furniture items.

By Dining Furniture: Dining room furniture witnessed an increase in sales owing to the increase in demand for chairs, tables, and complete dining sets. The rise in these products was mainly due to an increase in the ex-pat population in the UAE region. The most preferred dining sets were with a seating capacity of 4 people by people living in apartments, while the people who lived in villas preferred dining sets with a seating capacity of 8 people. The revenues accrued from the sale of residential furniture dominated the UAE home furniture market revenues; Living room furniture was the major revenue contributor. It was observed that off-plan sales had been a major feature of the UAE residential market as developers had been seeking fund developments in advance of incurring outlays on construction. Commercial furniture followed the dominating segment in terms of market revenues. Office furniture typically consists of workstation furniture, office chairs, office tables, and office storage spaces. The least share of market revenues in the UAE Home furniture was accrued to hospitality furniture, although the demand for hospitality furniture in the UAE region has witnessed an increase owing to the developing tourism sector of the region. Dubai is the most important hub for business relating to furniture which is strong now. UAE is considered to be one of the most active nations in terms of furniture and furnishings.

Mergers and Acquisitions: Furniture Market

Two GCC states, Saudi Arabia and the UAE have acquired 90.00% of the merger and acquisitions deals executed by the private companies, investment firms and advisors. The most active sectors including industrials, healthcare and consumer with intra GCC deals accounted for 64.00% during the first half of the year. A subdued private equity activity has been registered in the M&A deals with little to no capital raising activity at fund level in the post era.

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

Product Launch

Renowned for complete hospitality furniture solutions for both indoor and outdoor use, Intermetal is proud to launch LEGNO, a division within the company dedicated to the design and manufacture of wooden tables, wooden chairs, and sofas and lounge seating. To support the new initiative, Intermetal has invested heavily in a state-of-the-art joinery equipped with the latest technology to produce quality solid wood furniture, which is unique in the region. The new factory is equipped to manufacture over 200,000 chairs and tables per annum.

International and Domestic Players Dominance in Furniture Market

Dubai Furniture Imports posted 5.60 Billion AED in 2011 and exports and re-exports valued 529 Million AED and 1.50 Billion AED.

 

Furniture AED

All Trade AED

% Furniture to all Trade

Direct Imports

4,745,798,602

441,666,084,359

1.10%

FZ Imports

862,628,375

213,093,359,536

0.40%

Direct Exports

416,505,989

98,064,413,685

0.40%

FZ Exports

113,420,588

10,629,352,314

1.10%

Direct Re-Exports

1,162,083,454

160,694,577,158

0.70%

FZ Re-Exports

351,291,852

159,249,860,772

0.20%

 

The domestic market is taking around 85.00% of the domestic production and 15.00% of the production is exported. The furniture exports markets are fairly diversified as products are marketed to over 20 countries. The top 10 destinations are taking a share of around 58.00% of the total value of direct exports. The top 10 destinations there are distant markets like USA and regional markets like Saudi Arabia, India and Pakistan.

Top Furniture Exports 2010.

Country

Value (AED)

%

Papua New Guinea

94,755,067

23.04%

Saudi Arabia

24,408,108

5.93%

India

24,157,771

5.87%

Pakistan

20,129,837

4.89%

Iran

19,612,869

4.77%

USA

12,673,733

3.08%

Afghanistan

12,546,683

3.05%

Egypt

11,613,728

2.82%

UK

11,360,612

2.76%

Angola

10,846,141

2.64%

Total

242,104,550

58.86%

 

In addition, to the huge furniture imports which total 5.60 Billion AED in 2011, the industry has a lucrative promising international market. Value of the world imports from furniture stood at USD 168 Billion in 2010 which has increased by a significant rate of 17.00% over 2009 imports, suggesting that the furniture industry has not been affected by the international crisis.

Market Potential by Region

The nearby markets are not necessarily the top promising markets. The GCC has imported about 4.00 Billion USD of furniture in 2010 and Africa imported the same too. EU imported 68 Billion USD worth of furniture accounted for 40% of the total world imports.USA is the top world market for furniture accounting around 24.50% of world import and growing at a rate of 27% in 2010 over 2009. Market holding top share of world Importers are EU-27 -41% and USA -25 %.

Furniture Imports by Region -2010

Country

USD Million

GCC

4232,683

Africa

4124,383

EU27

68,749,876

Middle East

7335,250

CIS

4627,727

Asia

25674,678

 

Country      

Market Share %

GCC

2.50%

Africa

2.50%

EU 27

40.80%

Middle East

4.40%

CIS

2.70%

Asia

15.30%

USA

24.50%

 

GCC Countries Importers

Importers

Value Imported

Trade Balance

Annual Growth in value between 2006-2010

Saudi Arabia

1285409

-1115070

-7

Qatar

417615

-415994

10

Kuwait

329771

-318655

1

Oman

192833

-151898

9

Bahrain

177687

-131301

25

 

The volume of trade exchange between the United Arab Emirates and the other GCC member States underwent some fluctuations between 2010 and 2015 (the first nine months of 2015). The volume of direct GCC imports to the United Arab Emirates reached 22,3 billion AED in 2010, 19,4 billion AED in 2014, and further decreased to 12,4 billion AED in 2015, with a negative compound annual growth rate of 11,14%.

The Volume of Direct GCC Imports from UAE

Billion(AED)

2011

2012

2013

2014

2015

Bahrain

3144

2656

2391

2800

2276

Saudi Arabia

3225

3338

4189

3531

1977

Oman

4458

4615

7603

6407

3933

Qatar

1947

2346

2665

3098

2212

Kuwait

3225

3338

4189

3531

1977

 

The Volume of Direct GCC Exports from UAE

Billion(AED)

2011

2012

2013

2014

2015

Bahrain

1240

1569

1953

2061

2941

Saudi Arabia

5660

8078

13042

10806

12256

Oman

1194

6299

7946

8738

7897

Qatar

1871

2705

2607

3374

4241

Kuwait

3253

3761

5226

5917

4825

 

Saudi Arabia was the largest market for UAE exports, with 387%. Oman came next with 22,3%, then Kuwait with 18,2% in re-exportation. Saudi Arabia and Oman together represent about half of the GCC market for UAE re-exports. Qatar followed with a relative share of 18,3%, then Bahrain and Kuwait, with 16% each.

Trade Balance Indicators Snapshot

Country

2011

2012

2013

2014

2015

Bahrain

4327

5195

4745

3969

2523

KSA

5985

7060

7845

9743

6822

Oman

3140

9278

10391

10782

6729

Qatar

3878

4907

6192

6444

4647

Kuwait

4805

4076

4561

4926

3882

 

Furniture Market: Sales Distribution Data

Home wares and home furnishings stores are investing heavily in hyper connectivity to drive online sales, as it is expected to be a key future distribution channel for home furnishings. With the very high internet penetration rate among United Arab Emirates residents; this channel is set to become more convenient with the heavy infrastructure investments of internet providers and mobile network operators in expanding broadband internet access across the country. Although traditional luxury designs remain popular with locals, international brands such as IKEA, with its quick furnishing solutions retained the lead by meeting the furnishing demands of the expatriate population. Al Futtaim Group, the national brand owner of IKEA and Ace Hardware, considers that most of the loyal buyers at IKEA outlets consist of Arabs and Asians, followed by Western expatriates for indoor home furnishing solutions. The Emirati population, both local and expatriate, is among the most digitally connected and the most active online buyers in the world. The UAE has a total of USD 6.80 million online buyers, or nearly 80% of Internet users, which is higher than the European average (66.00% of Internet users). Online buyers under the age of 31 that make up 64.00% of the population represent 73.00% of all online transactions. Sales are heavily based in Dubai, as the city hosts 60.00% of all online buyers. As a reflection of the high population diversity, only less than 30% of the online buyers are local Emiratis. As the re-export hub of its region, the UAE has a well-established delivery network and ranked 13th on the World Bank's Logistics Performance Index. On the other hand, secure online payment methods are far from reaching maturity, as 58.00% of all online transactions are still made in cash. A new online consumer protection initiative, known as 'Digital Protection', has been launched by Dubai Economy to shore up consumer confidence in electronic payments. Despite a relative lack of secure online payment methods, the amount spent per person per online purchase is the highest in the world, at US$ 332, compared to US$ 86 per purchase in the US and US$ 73 in Europe. While online sales have been traditionally dominated by electronics retail, the share of fashion is rising and jumped from US$ 85 million in 2013 to US$ 272 million in 2017. However, fashion sales only make up 3% of total online retail shopping, whereas in the UK, a mature market in this field, fashion comprises 40% of total online sales. Consumers respond well to local adaptations of major international online shopping promotions, such as White Friday (based on Black Friday), which became the biggest online shopping event of the year in 2017.

Online distribution of Sales

Company

Average public Traffic/ Per Month

Souq

7.4 Million

Ounass

4.4 Thousand

Amazon

676 Million

Awok

290 Thousand

Basharacare

6.7 Thousands

Letstango

18 Thousand

Sharaf DG

249 Thousand

Brands Bay.com

1 Thousand

Shopia

3.5 Thousand

Next

16.6 Thousand

Namshi

516 Thousand

Wadi

341 Thousand

Carrefour

338 Thousand

IKEA

68.5 Thousand

Buy on Dubai

1.6 Thousand

Gadget By

4 Thousand

Wysada

2.4 Thousand

Dubizzle

605 Thousand

Sivvi.com

100 Thousand

Branddose

 

100 Thousand

 

Company Snapshot

Company

Sales

Revenue

IKEA

44.6 Billion

45.4 Billion

Home Centre

 

280 Million

Steelcase

629.3 Billion

3.4 Billion

Masco Corporation

8359 Million

577 Million

HNI Corporation

387.72 Billion

625.39 Billion

Kimball International Inc

195,570 Billion

768 Million

Okamura Corporation

96.20 Billion

8.2 Billion

 

 

 

                                                                                                                          

Latest News in Furniture Market

The construction industry in the UAE seems to boom in the future, the rapid growth in the construction and hospitality industry during the past few years in the UAE has brought about a boom for the furniture business in the country. The demand for timber products within the UAE and the region has seen a massive growth during the past years. Diversification of the region’s economies towards tourism and increased focus on real estate led economic development which has helped the country. The current furniture industry turnover is USD4.00 billion in the GCC countries, out of which USD 1.20 billion is from UAE furniture market. The continuous and rapid development of the country has opened the way for increased construction of residential and new projects. There is increased demand for furniture contributing to the boom in the region’s furniture segment business.

Competitive Landscape of UAE Furniture Market

The prominent companies profiled in the report are

  • IKEA,
  • Home Centre,
  • Pan Emirates,
  • Royal Furniture,
  • Danube,
  • Marina Homes,
  • Homes R US,
  • ID Design,
  • Pottery Barn,
  • Home Box,
  • Natuzzi,
  • Ebarza,
  • The people of Sand,
  • Marmalade,
  • The Bowery Company and Wysada  
  • Haworth,
  • Inter IKEA Systems BV,
  • Steelcase ,
  • Masco Corporation,
  • HNI Corporation,
  • L. & J.G. STICKLEY, 
  • Kimball International,
  • Okamura Corporation,
  • Heritage Home Group LLC,
  • Durham Furniture Inc.

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), 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
  • UAE Smart  Furniture Industry Outlook : Current & Future Outlook, 2019-2035
  • UAE 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 UAE 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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U.A.E (United Arab Emirates) Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

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