The GCC furniture market is expected to witness strong growth during the forecast period, owing to factors, such as the rising population and increased construction activity. The furniture industry has become one of the most vibrant and fast-growing industries in the GCC region. The growing number of real estate developments and the increasing demand for residential properties, along with governmental initiatives to develop socio-economic infrastructure, are some of the major factors fuelling the demand for furniture products in the region.
Foreign players are also investing heavily in the region, either to increase their presence or to expand their businesses in these countries, thereby, further boosting the GCC region's furniture industry. Furniture consumption is also rising due to a positive trend in construction activity. This generates a demand for furniture, both for residential and non-residential uage. The local furniture production is relatively lesser in the GCC market, and thus, the region meets its requirements thorough the imports of foreign products.
The countries in the GCC region are heavy importers of furniture, with the majority of the imports coming from countries, like China, Italy, Turkey, Germany, the United States, Poland, and Malaysia.
Saudi Arabia and the United Arab Emirates host the biggest furniture markets in the region, with the United Arab Emirates relying on re-exports of furniture products and Saudi Arabia relying completely on the domestic consumption of furniture products.
Key Market Trends
Saudi Arabia is One of the Fastest-growing Furniture Markets in the GCC Region
Saudi Arabia has the largest construction market in the GCC region, accounting for nearly 33% of the total market share in the area. Due to the rising population and urbanization, the construction sector of the country is expanding. Increasing real estate development and the rising demand for residential properties in the region, along with the governmental initiatives to develop socio-economic infrastructure, are fuelling the growth of the furniture industry in Saudi Arabia.
The continuous development of new housing units, coupled with a rise in the young and growing population of the country, is increasing the demand for furniture products. Additionally, urbanization and the development of the KSA's economy have generated a significant demand for furniture in the residential areas, hotels, offices, and industrial sectors. This is expected to grow further, in the coming years.
The Expanding Construction Sector is Driving the Market
The real estate sector has a significant effect on the furniture industry. The GCC region hosts one of the fastest-growing real estate markets across the world. Demographic changes, hosting of mega-events, tourism, and the influx of expatriates over the last few years are some of the major growth drivers for the real estate sector. Although the GCC region may have witnessed an economic slowdown, due to fluctuations in the oil market, the region is still witnessing increased investments.
Due to the increase in real estate activities in the region, the construction sector is expanding rapidly, mainly being driven by government-backed investments. The construction industry is witnessing a growth rate of nearly 5%, Y-o-Y, in the region, with increasing residential and commercial property developments. This rapid expansion in the construction sector will boost the demand for furniture products.
The market is highly competitive and comprises both local and international players. The market is fragmented, with the presence of players, such as IKEA, Pan Emirates, Home Center, Homes R Us, Royal Furniture, and Danube. Most of the furniture products in the country, such as home furniture products, are primarily imported and retailed through large-format showrooms, like IKEA. The furniture producers are slowly making their way through online retailing, across the GCC region. Some of the online furniture stores in the region are Ebarza, The Bowery Company, HomeBox, and LifeInteriors.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Insights on Regulatory Analysis on Furniture Products
4.2 Insights on Consumer Behavior Analysis on Furniture Products
4.3 Insights on Key Trends and Innovations in the Furniture Industry
5 MARKET DYNAMICS
5.1 Market Overview
5.2 Market Drivers
5.3 Market Restraints
5.5 Industry Value Chain Analysis
5.6 Porter's Five Forces Analysis
6 MARKET SEGMENTATION
6.1 By Material
6.1.4 Other Materials
6.2 By Application
6.2.1 Home Furniture
6.2.2 Office Furniture
6.2.3 Hospitality Furniture
6.2.4 Other Applications
6.3 By Distribution Channel
6.3.1 Supermarkets and Hypermarkets
6.3.2 Specialty Stores
6.3.3 Online Channels
6.3.4 Other Distribution Channels
6.4 By Country
6.4.1 Saudi Arabia
6.4.2 United Arab Emirates
6.4.5 Rest of GCC Countries
7 COMPETITIVE LANDSCAPE
7.1 Market Competition - Overview
7.2 Company Profiles
7.2.2 Home Centre
7.2.3 Royal Furniture
7.2.4 Homes R Us
7.2.5 ID design
7.2.6 Luxe Living
7.2.8 Al Huzaifa
7.2.9 Riyadh Furniture Industries
7.2.10 Delmon Interiors & Furniture Factory
7.2.11 Fahmy Furniture
7.2.12 AL Mutlaq
7.2.16 PAN Emirates
7.2.17 Danube Home
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.