Market Size of GCC Luxury Furniture Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 6.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
GCC Luxury Furniture Market Analysis
GCC Luxury Furniture Market has generated a revenue of USD 300 million in the current year and is poised to achieve a CAGR of 6% for the forecast period. The luxury furniture industry has become one of the most vibrant and fast-growing industries in the GCC region due to the rising population and increased construction activity. The growing number of real estate developments, the increasing demand for residential properties, and governmental initiatives to develop socio-economic infrastructure are some of the major factors fueling the demand for luxury furniture products in the region.
Local luxury furniture production is relatively lesser in the GCC market, and thus, the region meets its requirements through the imports of foreign products. Manufacturers and retailers operating in the region compete on almost the same grounds of the quality of the product and the material used to manufacture the product. The luxury furniture market in the GCC region is highly competitive, owing to the rising demand for furniture and furnishing products. This rise in demand has led to growing domestic demand and the emergence of multiple players catering to the same target audience for luxury furniture products. Imports play a major role in the GCC luxury furniture market. Foreign players are investing heavily in the region to increase their presence or expand their businesses in these countries, thereby further boosting the GCC region's furniture industry. The countries in the GCC region are heavy importers of furniture, with most of the imports coming from countries like China, Italy, Turkey, Germany, the United States, Poland, and Malaysia. Major foreign luxury furniture manufacturers have been providing their products in the country either through their showrooms or multi-brand retail stores.
The outbreak of the COVID-19 pandemic acted as a massive restraint on the luxury furniture manufacturing market in the GCC region, in 2020. It has disrupted supply chains, caused a shortage of materials, and terminated contracts to control expenses. The lack of labor is also hampering the overall luxury furniture market growth in the GCC region. The outbreak of the coronavirus disease (COVID-19) acted as a massive restraint on the luxury furniture manufacturing market in the Asia-Pacific region, in 2020. This may slow down the industry growth during the forecast timeframe. Sales dropped by almost 60-70% due to consumers having little opportunity to explore luxury furniture products. Almost 40% of luxury furniture production happens in Italy, and all the Italian factories, including small, family-based façonniers, have temporarily shut down, which resulted in a decline in sales in the GCC market.
GCC Luxury Furniture Industry Segmentation
Luxury Furniture is conducive to sumptuous living and includes elements that are elegant, sumptuous, and indulgent. A complete background analysis of the GCC Luxury Furniture market, which includes an assessment of the luxury furniture market in GCC, emerging trends by segments and regional markets, significant changes in market dynamics, and a market overview, is covered in the report. The report also features qualitative and quantitative assessments by analyzing the data gathered from industry analysts and market participants across key points in the industry's value chain. The GCC Luxury Furniture Market is segmented by Product Type (Lighting, Tables, Chairs and Sofas, Accessories, Bedroom, Cabinets, and Other Products), End User (Residential and Commercial), by Distribution Channel (Home Centers, Flagship Stores, Specialty Stores, Online, and Other Distribution Channels), and by Geography (Saudi Arabia, United Arab Emirates, Kuwait, Qatar, and Rest of GCC Countries). The report offers market size and forecasts for the Mom and Pop Stores Market in value (USD Billion) for all the above segments.
Product Type | |
Lighting | |
Tables | |
Chairs and Sofas | |
Accessories | |
Bedroom | |
Cabinets | |
Other Products |
End User | |
Residential | |
Commercial |
Distribution Channel | |
Home Centers | |
Flagship Stores | |
Specialty Stores | |
Online | |
Other Distribution Channels |
Geography | |
Saudi Arabia | |
United Arab Emirates | |
Kuwait | |
Qatar | |
Rest of GCC Countries |
GCC Luxury Furniture Market Size Summary
The GCC luxury furniture market is experiencing significant growth, driven by factors such as urbanization, increased construction activities, and a rising population. The demand for luxury furniture is further fueled by the burgeoning real estate sector, which is seeing a surge in residential property developments. Governmental initiatives to enhance socio-economic infrastructure also play a crucial role in this growth. Despite the relatively low local production of luxury furniture, the region heavily relies on imports from countries like China, Italy, and the United States, with foreign manufacturers investing substantially to expand their presence. The market is characterized by intense competition, with both international and local players vying for market share by offering high-quality products and innovative designs.
The COVID-19 pandemic posed significant challenges to the GCC luxury furniture market, disrupting supply chains and causing material shortages, which temporarily hindered growth. However, the market is poised for recovery, supported by trends such as the increasing preference for eco-friendly and multifunctional furniture, and the rising disposable income among consumers. Key cities like Dubai, Abu Dhabi, and Doha are at the forefront of this growth, driven by rapid economic development and an influx of expatriates. The market is dynamic, with major players like PAN Emirates and IKEA dominating, while mid-size and smaller companies are expanding their presence through technological advancements and product innovations. The ongoing residential remodeling and the demand for high-end furniture to enhance home aesthetics continue to support the market's expansion.
GCC Luxury Furniture Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Consumer Trend for Luxury Furniture
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1.2.2 Real Estate Development
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1.3 Market Restraints
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1.3.1 High Import Taxes and Duties
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1.3.2 High Cost of Raw Materials
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1.4 Value Chain/Supply Chain Analysis
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1.5 Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Lighting
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2.1.2 Tables
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2.1.3 Chairs and Sofas
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2.1.4 Accessories
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2.1.5 Bedroom
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2.1.6 Cabinets
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2.1.7 Other Products
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2.2 End User
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2.2.1 Residential
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2.2.2 Commercial
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2.3 Distribution Channel
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2.3.1 Home Centers
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2.3.2 Flagship Stores
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2.3.3 Specialty Stores
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2.3.4 Online
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2.3.5 Other Distribution Channels
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2.4 Geography
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2.4.1 Saudi Arabia
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2.4.2 United Arab Emirates
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2.4.3 Kuwait
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2.4.4 Qatar
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2.4.5 Rest of GCC Countries
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GCC Luxury Furniture Market Size FAQs
What is the current GCC Luxury Furniture Market size?
The GCC Luxury Furniture Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in GCC Luxury Furniture Market?
PAN Emirates, IKEA, Al Huzaifa, Luxe Living and Danube are the major companies operating in the GCC Luxury Furniture Market.