GCC Luxury Furniture Market Size

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.