Saudi Arabia Home Furniture Market Research Report: Forecast (2023-2028)

Market Definition

Furniture can be followed back to the ancient or Neolithic eras. It provides comfort at home while allowing us to express our style. Home furniture is an object made up of wood, metal, and cane used for decorative, storage purposes, and comfortable living. It includes furniture like a bed, seat, sofa, dining table, and other objects required in the bedroom or living room for availing comfort in the residential spaces.

Market Insights & Analysis: Saudi Arabia Home Furniture Market (2023-28)

The Saudi Arabia Home Furniture market is projected to grow at a CAGR of around 7.4% during the forecast period, i.e., 2023-2028. An increase in industrialization & urbanization in Saudi Arabia has positively affected the consumption behaviors of its residents, expanding luxury goods, furniture, and other items of personal consumption. This phenomenon aided the revenue growth of the Home Furniture market during the historical years.

Additionally, the emergence of housing requirements, owing to the booming expatriate population for employment needs in the country has contributed significantly to the demand for essential home furniture products such as beds, closets, sofas, seats, etc. The launch of the Saudi Housing Program in 2018, which focused on setting up new standards for the development of the housing sector to increase the ownership rate from 47% to 60% by 2020, largely supported the demand for home furniture in the country.

Simultaneously, the growing demand for multi-utilitarian furniture that supports greater flexibility with lesser space requirements is promoting the stipulation for home furniture in Saudi Arabia. Furthermore, the rising inclination of the Saudi government & domestic real estate developers toward the Saudi Housing Vision 2030 would boost the housing ownership rate to 70% by 2030. This program is supported by the launch of the Sakini Home building program to provide instant home loan approval to the residents. The ease of availability of home loans in the country is anticipated to escalate the ownership rate of housing in the country. Hence, this would create an opportunity for the growth of the market during the forecast period.

Saudi Arabia Home Furniture Market Driver:

Expansion in the Residential Sector to Impel the Furniture Demand - The increasing real estate development projects as well as the growing demand for residential property in Saudi Arabia has infused the growth of home furniture in the country. Moreover, the government of Saudi Arabia has taken several initiatives, such as the Housing Program Vision 2030, the Sakani Program, and the Ministry of Housing Infrastructure Program, which has heightened the establishment of new residential units in the country.

Further, the burgeoning investments for developing socio-economic infrastructure by the Ministry of Housing in the country have driven the demand for home furniture. In 2018, the Saudi Arabia government launched the ‘Housing Program’ to create a vibrant environment for families & society. The program was initiated to set up new standards for the development of the residential sectors to provide affordable housing options to the citizens of Saudi Arabia.

Thus, the rising expansion of the residential sector has eased the population to purchase property, which, in turn, has boosted the demand for home furniture in Saudi Arabia.

Saudi Arabia Home Furniture Market Key Trend:

Rising Adoption of Multifunctional Furniture - An emerging trend of adopting multifunctional furniture in homes has been observed in the country, owing to the aesthetic enhancements of bedrooms & living rooms. Furthermore, there are numerous advantages of using multifunctional furniture, such as beds that can be converted into cupboards, wardrobes, etc., when not in use, and sofas that can be molded into bunk beds, etc. Thus, such innovative features in home furniture have attracted customers to purchase multifunctional furniture for their homes.

In addition, the exceptional demand for such furniture in Saudi Arabia has led to offline & online stores keeping them in stock to fulfill consumer needs. Moreover, some prominent online & offline stores that offer multifunctional furniture in Saudi Arabia are Bakri Furniture, UBUY, Home Centre, etc. Hence, the diversified usefulness of multifunctional furniture would attract more customers to purchase them for their homes in the coming years.

Saudi Arabia Home Furniture Market Possible Restraint:

Rising Inclination of Consumers Towards Renting Home Furniture to Hinder the Demand - The rising inclination of consumers toward renting home furniture, such as dressing tables, beds, etc., to satisfy their short-term needs has become a hindrance to new furniture sales in the country. As there is a growing number of temporary citizens or expatriates in the country, they tend to rent the furniture for a stipulated period, which results in a significant reduction in their expenses on new furniture.

Additionally, with the rapid shift in youth preferences & tastes regarding new designs & materials of furniture, the youth populace in the country prefers to rent furniture & keep up with the latest fashion in the market. Therefore, renting helps them choose different furniture styles for different occasions.

On the other hand, when an individual purchases furniture, the frequent purchase of furniture gets delayed for a long period. Thus, the rising popularity of rental furniture presents a substantial challenge to the sale of new furniture in Saudi Arabia.

Saudi Arabia Home Furniture Market Growth Opportunity:

Inclining Interest Towards Home Decor & Interior - The Saudi Arabia Home Furniture market displayed notable growth in recent years due to the rising interest among the population of the country in home decor & interior. The growing vogue for creative architecture & interior designs of residential buildings in Saudi Arabia has catalyzed the demand for luxurious beds & sofas.

Thus, the rising inclination of the nation's population toward interior design for their homes would fuel the sales of elegant home furniture in the coming years. As a result, the companies of home interiors & furniture have also collaborated & expanded their store networks to explore lucrative market opportunities.

Moreover, with the surging demand for home decor, many companies have initiated expansion & collaboration-based activities. Consequently, the collaborations between the companies may help the Saudi Arabia Home Furniture market grow in the near future.

Saudi Arabia Home Furniture Market (2023-28): Segmentation Analysis

The Saudi Arabia Home Furniture Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the level. In accordance to the analysis, the market has been further classified as:

Based on the Type of Furniture:

• Bedroom Furniture
  • Bed
    • Low End
    • Mid Segment
    • High End
  • Others (Side-table, Closets & Cabinets, etc.)
• Living Room Furniture
  • Seats
  • Sofas
    • Low End
    • Mid Segment
    • High End
  • Others (Dining table, Cabinets, TV & other storage units, etc.)

Bedroom Furniture sales increased significantly in the Saudi Arabian Home Furniture market due to the growing number of residential buildings. The rising population & surge in expatriates in Saudi Arabia have been the prime factors for the increasing number of residential buildings & apartments in the region. Moreover, consumers have been spending extensively on the purchase of beds based on their comfort & attractiveness.

The high-income consumers in Saudi Arabia have been opting for luxurious & high-end type beds like furniture designed & made in France, Italy, and Spain. Whereas individuals with relatively less income have tended towards mid-segment & low-end type beds offered by China & Turkey. Furthermore, with the launch of various projects for the expansion of residential projects, such as the construction of buildings, townships, etc., in the region, the demand for bedroom furniture is anticipated to rise in the forecast years.

Based on Sales Channel:

• Offline
• Online

Here, Offline stores acquired a significant share in the Saudi Arabia Home Furniture market, historically, owing to the inclination of the residents to get assured of the quality of furniture & check if that meets their residential space requirements. Therefore, the online segment contributed to a marginal share in the Home Furniture market, with the demand majorly accumulated from chairs, side tables, etc., that were of comparatively lower cost.

However, the imposition of lockdown restrictions in 2020 to curb the spread of coronavirus declined domestic travel activities, which decreased the demand for furniture from retail outlets, specialty stores, etc., in the country. This scenario accelerated the supply of furniture from online retailers, resulting in benefits such as attractive discounts, doorstep delivery, and secure payment gateways.

Gain a Competitive Edge with Our Saudi Arabia Home Furniture Market Report

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2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
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4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.