The 64th edition of Salone del Mobile.Milano and Milan Design Week 2026 is forever etched in history as a period defined by tariffs, inflation, soaring oil prices, and conflict. While the design industry is thriving, with occupancy rates and hotel tariffs indicating a booming market, the ongoing Middle East conflict and the closed Strait of Hormuz cast a shadow over the week's events. The Iran conflict, which ignited in late February and hit key luxury and design hubs like the UAE and Riyadh, adds another layer of uncertainty. Leaders in the industry are cautious about the outlook for 2026 and performance in the Middle East, closely monitoring the situation. The Middle Eastern region accounted for 7% of the sector's total exports, but by the end of 2025, it recorded an overall decline of 1.5%. The conflict has disrupted trade routes and markets, with exports from Italy to Saudi Arabia plunging 19.7%.
Design platforms like Artemest, which previously relied on the Middle East for nearly 20% of its sales, are now cautiously optimistic. The company is still planning a satellite fair in Riyadh for 2026, but the event's future is uncertain. The sector's biggest names, such as Molteni&C, Minotti, Cassina, and Poltrona Frau, have invested in expanding their retail space in the Gulf to tap into the high-net-worth migration to the region over the past decade. However, the conflict has made it increasingly complicated to work with the Middle East, with rising transportation costs and a lower number of ships transporting materials.
At the European level, the design sector is thriving, with total revenue reaching 31 billion euros in 2024, up 3.2% year on year. French manufacturers, in particular, are focusing on Dubai and Saudi Arabia, driven by construction, housing, and luxury demand. However, concerns have been raised about rising shipping costs, which are a significant challenge for furniture exporters. The industry needs to concentrate on the big picture, the globe as a whole, and areas of opportunity such as younger generations who are increasingly interested in buying high-end furniture.
This year has been coined an "unforecastable year" by luxury linens maker Frette CEO Filippo Arnaboldi, due to the geopolitical challenges and the difficulty in understanding consumer sentiment. Despite the challenges, the U.S. market remains the number-one market for Frette, accounting for 60% of its business. The industry must carefully navigate the current situation, focusing on long-term opportunities and strategies to mitigate the impact of short-term events. Salone del Mobile.Milano organizers are planning a new initiative and narrative installation to showcase new possibilities for luxury hospitality decor, aiming to ignite growth and build an international audience.
