The Saudi Arabian carpet and rugs market have experienced a noteworthy revenue of USD 0.45 billion in the current year, projecting a 3.5% Compound Annual Growth Rate (CAGR) for the forecasted period. Despite grappling with setbacks induced by the COVID-19 pandemic, the industry is poised for substantial growth, propelled by various factors and evolving market trends.
The onset of the pandemic led to significant disruptions in the carpet and rugs sector due to government-imposed lockdowns, impacting the flow of raw materials and manufacturing processes. Government regulations on public spaces, including hotels, restaurants, and offices, resulted in a sharp decline in demand. Additionally, restrictions on retail outlets and disruptions in distribution chains were observed, while e-commerce emerged as a crucial avenue for maintaining supply chains.
Carpet and rugs are not only sought after for their aesthetic appeal but also for their practicality in providing floor protection and insulation, particularly beneficial in colder climates. Saudi Arabia anticipates considerable growth in this sector due to shifting consumer lifestyles, increased disposable incomes, and a growing emphasis on interior design preferences.
Currently producing around 120-130 million sq. m of carpet annually, with an approximate consumption of 70 million sq. m, Saudi Arabia exports its carpets to more than 70 countries. The market’s growth is fueled by rising interest in interior décor products, aligned with homeowners’ desires for comfortable living spaces with appealing interiors.
The kingdom’s robust economy, burgeoning population, and thriving construction sector underpin the carpet and rugs industry’s growth. With Vision 2030 driving economic diversification and development, major construction projects and infrastructure initiatives are anticipated to significantly impact the market’s trajectory.
The construction boom in Saudi Arabia, especially in housing projects and renovations, is a key driver for the carpet and rugs market. The government’s initiative to construct 3 million homes by 2025 is expected to fuel demand further. Concurrently, the hospitality sector’s growth, especially in cities like Jeddah, spurred by tourism and infrastructure development, will indirectly stimulate demand for carpets and rugs.
Saudi Arabia’s tourism ambitions, manifest in the Vision 2030 initiative, aim to position the kingdom as a global tourism hub. The planned investments of $810 billion in cultural and entertainment projects and efforts to attract international tourists align with the country’s goal to welcome 100 million visitors by 2030. These initiatives directly contribute to increased demand in the hospitality sector, consequently boosting the market for carpets and rugs.
In conclusion, while challenges persist, including high raw material costs, Saudi Arabia’s carpet and rugs industry remains resilient. Driven by construction activities, evolving consumer preferences, and the kingdom’s tourism ambitions, the market is poised for steady growth in the foreseeable future. The industry’s ability to adapt and capitalize on emerging opportunities positions it for a robust expansion in the years ahead.