Yet Another Stress Test for the Resilience of the Global Furniture Market
MARKET INTELLIGENCE
After a 2025 marked by policy uncertainty, protectionist measures, and rising tariffs, 2026 has brought another test for the global market. Despite new US tariff measures, the international trade of furniture in 2025 remained almost stable. Now, since late February 2026, all attention has shifted to the Middle East.
World trade of furniture 2005-2026. Current USD billion
According to the IMF, many economies in the Middle East closed 2025 with strong performance. Growth remained robust, supported by solid non-hydrocarbon activity and resilient domestic demand across the region. The war in Iran—spilling in various ways into neighbouring countries—has not only caused profound human suffering but has also triggered immediate economic consequences.
The closure of the Strait of Hormuz, combined with disruptions to oil and natural gas production and severe impacts on air traffic to and across the Gulf, has sent shockwaves through the global economy. The first and most immediate effect has been a surge in prices.
Beyond the widely reported surge in oil, gas, and broader energy costs, the strait also serves as a vital transit corridor for other globally significant goods, including fertilisers, chemical products, and aluminium. Rising prices for chemical inputs, for instance, are reverberating through the furniture industry: the cost of producing foam for mattresses and upholstered furniture is climbing, while aluminium components, plastic edging, adhesives, and paints and lacquers are likewise becoming increasingly expensive and harder to secure.
Furthermore, shipping costs have risen as routes have become longer, and logistics activity has slowed.
It is also important to note that Gulf countries are significant importers of furniture. The Middle East accounted for more than USD 7 billion in furniture imports according to CSIL. China was the leading source of these imports, exporting nearly USD 4 billion to the region—approximately 6% of its total furniture exports. The main Middle Eastern countries to which China exported are Saudi Arabia and the United Arab Emirates, both exceeding USD 1 billion.
European countries exported just under USD 2 billion to the Middle East. Roughly 80% of exports stay within Europe, while about 13% of shipments outside the region were directed to the Middle East. Within the region, the United Arab Emirates was the primary destination, accounting for more than USD 700 million.
The future is uncertain. The geopolitical situation in the Middle East is having a significant—albeit differentiated—impact on Gulf countries, directly affecting tourism and the numerous construction projects currently underway. Beyond the regional outlook, the conflict is also reshaping expectations for global trade dynamics.
Source: CSIL World Furniture Magazine #10, June 2026
Discover all issues at https://www.worldfurnitureonline.com/magazine
