Saudi Arabia Residential, Hospitality and Commercial Furniture Market Outlook to 2023: Ken Research

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.

Saudi Arabia Furniture Market Overview and Genesis

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)