New Delhi, September 14, 2019: The report titled “Saudi Arabia Residential, Hospitality and Commercial Furniture Market Outlook to 2023 – By Bedroom Furniture (Beds, Mattresses, Wardrobes, and Chest of Drawers), By Living Room (Sofas, Sofa Cum Beds, Coffee Tables, and Center Tables, TV Furniture and Stools, Dining Room, Kitchen, and Kids Furniture; By Commercial Furniture (Workstation Desks, Office Chair, Conference Table, Corner Table, and Office Storage)” provides a comprehensive analysis of furniture products in the Saudi Arabia region. The report focuses on overall market size, market segmentation by market structure (organized and unorganized), type of material used for furniture (wood, glass, metal, plastic, and others), major end users (residential, hospitality and commercial), by residential furniture product categories (bedroom, living room, dining room, kitchen furniture, kids furniture and outdoor furniture), by the living room (sofas, sofa cum beds, coffee tables and center tables, TV furniture and stools), by the material used in sofa (fabric and leather), by sofa seating arrangement (3+2 seating, 3+2+1+1 seating and others), by bedroom furniture (beds, mattresses, wardrobes and chest of drawers), by beds (with storage and without storage capacity), by the bed size (single bed, king-sized bed, and queen-sized bed), by the material used in beds (wood and steel), by material used in dining table (wood and others), by dining table seating arrangement (6 and 8 chairs, more than 8 chairs and others), by kitchen furniture (modern, and traditional) and others.
The furniture industry is operating at a maturity stage and is growing at a positive double-digit CAGR during the review period of 5 years from 2013-2018. The industry was adversely hit during 2016-2017 due to recession in the real estate sector and the decline in oil prices in the recent past. The market recovered in 2018 and is anticipated to grow at a CAGR of 10% in the next 5 years. The preference for multi-utilitarian furniture has also been increasing due to the benefits of less space requirement and multi-usage purposes offered. The ease of self-assemblage gives added benefit to the customer.
Investments in the real estate financing sector was expected to reach $21.3 billion in 2019 and one of the key targets of the Saudi Ministry of Housing is to increase Saudi homeownership to 70% by 2030. The number of Traditional houses and Apartments were expected to increase to 657,897 and 1,572,654 respectively by the year 2018.
Lastly, furniture has recently made their way through online retailing, for instance, retailers such as Home center and IKEA launched online stores to facilitate easy buying of furniture while relaxing at home.
Saudi Arabia Furniture Market Segmentation
By Market Structure (Organized and Unorganized Segment):
The organized sector dominated the market revenues as retailers operating under this segment deal in high quality and designer products manufactured from MDF or solid wood during the year 2018.
The unorganized players rely majorly on the price of the material whereby they tend to compromise with the quality of the product. The unorganized segment captured the remaining market share in terms of market revenue during the year 2018. Also, unorganized players procure raw material and labor locally. However, organized players often get furniture imported.
By End Users (Residential, Hospitality, and Commercial):
The revenues accrued from the sale of residential furniture dominated the Saudi Arabia furniture market revenues in 2018. Bedroom furniture generated the maximum revenue during 2018 and is expected to increase with a CAGR of 7% during the time period 2019-2023. Mattresses and Beds will show a high growth of 12% and 9% respectively over the years from 2019-2023.
Hospitality furniture followed residential furniture in terms of revenue in the year 2018. The country has witnessed an increase in the total number of international tourists, from 18.6 million in the year 2017 to 23.6 million in 2018 as a result of the increased promotion of tourism in Saudi Arabia. Construction of new hotels and resorts will drive the demand for hospitality furniture.
The remaining revenue share was taken up by the commercial furniture as the total office space in major commercial hubs of Saudi Arabia was forecasted to increase. Riyadh was expected to witness an estimated increase in office space to 3,500,000 sq meters GLA by the end of 2018, owing to the entrance of notable projects such as Cayan Mefic Center, Al Rajhi Bank Tower, and the Business Front. The office space in Jeddah and Eastern Province was expected to reach to 1,100,000 sq meters GLA and 1,050,000 sq meters GLA respectively by the end of 2018.
Comparative Landscape in Saudi Arabia Furniture Market
Saudi Arabia furniture market was observed to be highly fragmented with the presence of domestic as well as global players. Furniture in various price segments, including mass, economy, premium, and luxury are designed by several retailers to cater to the needs of expanding the customer base of all classes.
Over the years, the competition between the domestic and international players has intensified owing to the increase in demand for furniture products in Saudi Arabia. Companies with a disruptive model like that of IKEA have acted as a significant threat to the unorganized sector. Organized players have been successful due to their high budget marketing campaigns and promotions which largely include the price reduction on MRP and high quality being offered at low cost. Some of the major competition parameters include a number of stores, pricing, and type of material used in furniture, product SKUs, online presence/distribution channel and others.
Saudi Arabia Future Outlook and Projections
The furniture industry of Saudi Arabia is expected to grow at a positive double digit CAGR during the forecast period 2019-2023. Expected tailwinds include rising hotels and resorts room supply, expected to increase in commercial space, increase customer budget allocation for multi-utility furniture and customer preference shift to premium modern-design furniture.
Key Segments Covered:-
Market Structure
Organized Segment
Unorganized Segment
Material Used
Wood
Glass
Metal
Plastic
Others (Bamboo and MDP)
End Users
Residential Purpose
Bedroom Furniture
Beds
Beds without Storage
Beds with Storage
Size of Beds
Single Size Bed
Double Size Bed
Queen Size Bed
Material Used in Beds
Wood
Steel
Mattresses
Chests of Drawers
Wardrobe
Living Room Furniture
Sofa
Material Used in Sofa
Fabric
Leather
Sofa Seating Furniture
3+2 Seating
3+2+1+1 Seating
Other Seating Pattern
Coffee Table and Centre Table
Material Used in Coffee Table and Centre Table
Wood
Steel and Glass
Sofa cum Bed
Others (TV Cabinets and Stools)
Dining Table Furniture
Material Used in Dining Table
Wood
Others (Steel and Glass)
Seating Arrangement of Dining Table
< 6 Chairs
6-8 Chairs
8 Chairs
Type of Kitchen Furniture
Modular
Regular
Outdoor Furniture
Style of Residential Indoor Furniture
Modern and Contemporary
Traditional or Classic
Hospitality Furniture
Commercial
Type of Office Furniture
Workstation Desk
Office Chair
Conference Table
Corner Table
Office Storage
Key Target Audience
Furniture Retailers
Furnishings Retailers
Private Equity Companies
Contract Furniture Manufacturers
Furniture Association
Government Associations
Real Estate Developers
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2019-2023
Companies Covered
IKEA
Home Centre
Almutlaq Furniture
Al-Rugaib Furniture
Al Jedaie Office Furniture
El Ajou Group
Key Topics Covered in the Report:-
Market Overview and Genesis
Value Chain Analysis
Market Size, 2013-2018
Saudi Arabia Furniture Market Segmentation, 2018
Trade Scenario, 2013-2017
SWOT Analysis
Supplier Selection Criteria
Decision Making Parameters
Trends and Developments
Issues and Challenges
Competitive Landscape
Future Outlook and Projections, 2019-2023
Analyst Recommendations
Online Retailing Success Stories of Major Indian Furniture Retailers
For Information Click On the Below Mentioned Link:-
Saudi Arabia Residential, Hospitality and Commercial Furniture Market Outlook
Corporate Comm India (CCI Newswire)
