Saudi Arabia Furniture Market

Saudi Arabia Furniture Market Size:

Saudi Arabia furniture market size is projected to exhibit a growth rate (CAGR) of 6.59% during 2024-2032. The increasing urbanization, rising disposable incomes, government housing initiatives, a growing expatriate population, and the expansion of the real estate and hospitality sectors are contributing to the market growth.

Saudi Arabia Furniture Market Analysis:

• Major Market Drivers: The Saudi Vision 2030 initiative is a significant driver, with extensive investments in infrastructure, housing, and tourism boosting demand for residential and commercial furniture. Moreover, increasing urbanization and rising disposable incomes leading to higher spending on home furnishings are impelling the market growth. Besides this, supportive government housing initiatives and a growing expatriate population are further aiding in market expansion.
• Key Market Trends: The growing demand for modern and contemporary furniture styles driven by the younger generation’s preference for sleek, minimalist designs is a key trend impelling the market growth. Moreover, the emergence of augmented reality (AR) and virtual reality (VR) technologies, in conjunction with the growth of e-commerce and online retail is revolutionizing the furniture shopping experience and increasing online sales. Furthermore, the entrance of international furniture brands, enhancing the product variety and quality available to consumers is another major Saudi Arabia furniture market trends.
• Competitive Landscape: The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry.
• Challenges and Opportunities: The market witnesses high import tariffs and logistics costs that pose challenges for international furniture brands entering the market. On the other hand, opportunities exist in catering to the growing demand for eco-friendly and sustainable furniture options. Besides this, local manufacturers have the chance to innovate and compete by integrating modern design trends with traditional elements, appealing to a broader customer base.

Saudi Arabia Furniture Market Trends:

Diversifying the economy

Saudi Arabia's contribution of USD 10 million to the AIIB's Special Fund Window for Less Developed Members aligns with the broader objectives of the Saudi Vision 2030 initiative. It is aimed at diversifying the economy away from oil dependence; The initiative's substantial investments in infrastructure, housing, and tourism have created a surge in demand for both residential and commercial furniture. New housing projects and urban development plans require furnishing for thousands of new homes and apartments, driving sales in the residential furniture segment. Additionally, the emphasis on boosting tourism through the development of luxury hotels, resorts, and other accommodations necessitates high-quality furniture to meet international standards thus bolstering the Saudi Arabia furniture market growth.

Growing demand for modern and contemporary furniture

The expanding younger population with changing tastes and preferences, which is largely influenced by global trends and exposure to international lifestyles is presenting lucrative opportunities for market expansion. The younger generation, comprising a significant portion of the population, favors sleek, minimalist, and functional designs that align with modern living. Additionally, the increasing influence of social media and home decor has led to a heightened awareness and desire for stylish and trendy furniture. As a result, furniture retailers and manufacturers are adapting their product offerings to cater to this demand, incorporating innovative designs, new materials, and multifunctional furniture pieces that appeal to the aesthetics and practical needs of modern homes. This trend towards modernity boosts Saudi Arabia furniture demand and also encourages innovation and competition within the market.

Growth of e-commerce and online retail

The convenience of online shopping, widespread smartphone use, and internet access have significantly boosted online furniture purchases. By 2024, Saudi internet users for e-commerce are projected to reach 33.6 million, a 42% increase from 2019. Notably, Saudi Arabia's e-commerce transactions in the home and garden furniture sector averaged USD 261.212 from March 2019 to February 2024, based on Saudi Arabia furniture market analysis. E-commerce platforms offer diverse products, competitive prices, and home delivery, attracting consumers. Technologies like augmented reality (AR) and virtual reality (VR) enhance the shopping experience by allowing customers to visualize furniture in their homes, increasing satisfaction and driving sales. Consequently, in order to increase their customer base, traditional furniture stores are implementing omnichannel strategies and creating an online presence.

Saudi Arabia Furniture Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on material, application, and distribution channel.

Breakup by Material:

• Wood
• Metal
• Plastic and Others
   

The report has provided a detailed breakup and analysis of the market based on the materials. This includes wood, metal, and plastic and others.

Saudi Arabia furniture market insights show wood as a highly preferred material due to its durability, aesthetic appeal, and versatility. It is commonly used for high-quality, traditional, and modern furniture pieces, offering a range of finishes and styles that cater to diverse consumer tastes and interior design preferences.

On the other hand, metal furniture is prized for its robustness, durability, and contemporary style. It offers a modern, industrial look and is frequently utilized in both home and office settings. Metal's resistance to wear and ability to support intricate designs make it a popular choice for contemporary and durable furniture solutions.

Besides this, furniture made from plastic is appreciated for its affordability, lightweight nature, and ease of maintenance. It is frequently utilized in casual indoor environments, children's rooms, and outdoor settings. Moreover, plastic also serves as an affordable and practical option because of its weather resistance, color and design versatility, and practicality.

Breakup by Application:

• Home Furniture
• Office Furniture
• Hospitality Furniture
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes home furniture, office furniture, hospitality furniture, and others.

Home furniture encompasses products designed for residential use, including living room, bedroom, dining room, and outdoor furniture. This segment is driven by increasing urbanization, rising disposable incomes, and a growing trend toward home renovation and interior decoration, reflecting consumers' desire for comfort, functionality, and aesthetic appeal in their living spaces. 

Additionally, office furniture includes desks, chairs, storage solutions, and conference tables tailored for workplace environments. As businesses increasingly recognize the importance of a conducive work environment, there is a surge in investments in high-quality, ergonomic chairs and adjustable desks designed to promote better posture and reduce the risk of workplace injuries.

Apart from this, hospitality furniture covers furnishings for hotels, resorts, restaurants, and other commercial hospitality settings. Consequently, the need for long-lasting, fashionable, and cozy furniture that satisfies high standards for guest experience and operational efficiency, as well as government investments in hospitality infrastructure, are driving market growth.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online
• Others
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, specialty stores, online, and others.

Supermarkets and hypermarkets serve as convenient one-stop shops for consumers, offering a variety of furniture items alongside other household goods. These large retail spaces attract a high footfall due to their diverse product range, competitive pricing, and promotional offers, making them popular destinations for furniture purchases.

Moreover, specialty stores focus exclusively on furniture and home decor, providing a curated selection of high-quality and unique items. These stores often offer personalized services, expert advice, and customization options, attracting customers seeking specific styles, premium products, or bespoke solutions, thereby creating a niche market segment.

Likewise, the online furniture market is rapidly growing, boosting the convenience of shopping from home, wide product selection, and competitive pricing. E-commerce platforms often feature advanced technologies like augmented reality (AR) to help consumers visualize products in their spaces, enhancing the shopping experience and driving higher sales.

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Northern and Central, Western, Eastern, and Southern regions.

The Saudi Arabia furniture market forecast reveals that the Northern and Central Region is a key region for the furniture market due to its dense population and economic hub status. This region witnessed rapid urbanization, high disposable incomes, and government initiatives like Vision 2030 to drive demand for residential, office, and hospitality furniture.

Moreover, the Western Region experiences a significant boost due to growing tourism, religious pilgrimages, and real estate development. Cities such as Jeddah and Mecca, which attract millions of visitors annually for religious purposes, are seeing increased demand for both residential and commercial furniture to accommodate the influx of tourists and pilgrims.

Furthermore, the Eastern Region benefits from the oil and gas industry's economic prosperity. The region's high living standards and increasing expatriate population fuel demand for diverse furniture styles, especially in luxury residential and modern office segments, supporting market growth.

Apart from this, the Southern Region, known for cities like Abha, encounters steady growth in the furniture market driven by local development projects and a focus on improving living standards. Local government initiatives aimed at enhancing infrastructure and living conditions are propelling demand for modern and high-quality furniture.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided.
• The competitive landscape is characterized by the presence of both international and local players, offering a diverse range of products to cater to varying consumer preferences. Major international brands dominate the market, leveraging their extensive product lines, brand recognition, and innovative designs to attract a broad customer base. These companies often invest in large showrooms and e-commerce platforms to enhance accessibility and customer experience. Local manufacturers and retailers compete by offering customized solutions, traditional designs, and competitive pricing. The market is also witnessing increased collaborations and joint ventures between local and foreign companies, aiming to combine global design trends with regional preferences. Additionally, the growth of online retail and technological advancements in AR are intensifying competition as companies strive to offer more convenient and engaging shopping experiences contributing to the Saudi Arabia furniture market share.

Saudi Arabia Furniture Market News:

• In March 2024, Al-Futtaim IKEA, the leading Swedish home furnishing retailer in the region, unveiled its innovative "Store of Tomorrow," designed to revolutionize the retail industry by emphasizing play, discovery, and family-focused experiences. Committed to accessibility and affordability, Al-Futtaim IKEA invites customers to enjoy a seamless shopping journey where playfulness meets practicality.
• In June 2023, Thriwe partnered with Al Mutlaq Group to enter Saudi Arabia, targeting $100 million in revenue within three years. The collaboration aims to improve customer experience and loyalty and rewards programs in the region.

Saudi Arabia Furniture Market Report Scope:

Key Questions Answered in This Report:

• How has the Saudi Arabia furniture market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Saudi Arabia furniture market?
• What is the breakup of the Saudi Arabia furniture market on the basis of material?
• What is the breakup of the Saudi Arabia furniture market on the basis of application?
• What is the breakup of the Saudi Arabia furniture market on the basis of distribution channel?
• What are the various stages in the value chain of the Saudi Arabia furniture market?
• What are the key driving factors and challenges in the Saudi Arabia furniture market?
• What is the structure of the Saudi Arabia furniture market, and who are the key players?
• What is the degree of competition in the Saudi Arabia furniture market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia furniture market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia furniture market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region. 
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia furniture industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.