Saudi Arabia's pillow market is expected to grow at a compound annual growth rate (CAGR) of 7.2 per cent during 2018-24, a report said, noting that with stabilization of oil prices, the consumer buying pattern is expected to regain momentum.
Pillow market in Saudi Arabia declined during 2014-17 due to falling consumer spending, added the report titled "Saudi Arabia Pillow Market (2018-2024)"from 6Wresearch, a global market research and consulting firm.
However, the market is expected to bounce back post 2018 with rising consumer confidence. Though, the market declined during this time period but pillow manufacturers registered growth in demand at the time of festive season as compared to the non-festive season.
In last two years, Saudi Arabia witnessed rise in cost of living and decline in consumer spending attributed to government reforms, changes in indirect tax policies and wage cuts. This factor has further shifted the consumer preference from high end premium quality pillow brands to lower priced pillows.
Supply of new residential and hotels declined across the Kingdom owing to delay and cancellation of several projects. Furniture sales in Saudi Arabia weakened following the low demand in the midst of challenging environment.
Residential and hotel construction activities are likely to pick up pace primarily as a result of government initiatives such as National Transformation Plan and establishment of National Center for Privatization, listing of further REITs (Real Estate Investment Trusts), taxation reforms, and a series of public-private partnerships.
Prijo Samuel, assistant research manager - IT & Electronics, Research and Consulting, 6Wresearch, said: "Down & feather pillows were the most promising segment in Saudi market with substantial proportion of revenues arriving from commercial application."
"These pillows are in huge demand as these are more durable as compared to microfiber pillows, which are inexpensive and require extensive care on consumer's behalf, and are mostly preferred among the low to mid income households. Foam & memory foam pillows on the other hand, are mainly used for medical purposes such as back and neck pains.
"Additionally, latex pillows are gaining quick acceptance in the market; these pillows offer significant support for head & neck, keeps them cool amidst the hot weather conditions in the country, and deliver higher comfort and sleep quality as compared to other pillows. Additionally, these are highly durable and last longer in comparison with other types of pillows available in the market. However, low awareness and high cost of these pillows are some of the key concerns among the consumers," Samuel added.
Rishi Malhotra, senior research analyst - IT & Electronics, Research and Consulting, 6Wresearch, said: "Significant proportion of pillow revenues were garnered from residential application. Consumers are becoming more attuned towards sleep system purchase that includes both a mattress and a pillow."
"Microfiber pillows were highly popular among the residential application followed by down & feather pillows which have quickly gained acceptance among the mid to high income households, while latex pillows are gradually gaining traction in the residential application.
"Also, commercial application recorded high demand across the regions such as Jeddah, Makkah and Madinah owing to surge in tourism and high demand among large number of hotels present across these regions. Demand in commercial application is primarily high during the Hajj season as the hotels have to replace the old mattresses and pillows with the new ones.
"Moreover, specialized retail shops are the most popular point of sales contact for pillow sales as a result of strong presence of these stores across the Kingdom. Wide array of offerings are available across these stores and growing consumer appetite for status symbol has further supported these retailers to outperform as compared to other distribution channels across the country," Malhotra added.
Some of the key contributing vendors in Saudi Arabia Pillow Market include - Getha Bedding, Maya Tekstil, and Tempur Sealy International Inc, the report said. - TradeArabia News Service
Media Source : GDN Online