MEA Luxury Goods Market Size
| Study Period: | 2016 -2027 |
| CAGR: | 8.5 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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MEA Luxury Goods Market Analysis
The Middle East and Africa luxury goods market is projected to record a CAGR of 8.5% during the next five years.
In the Middle East and Africa, especially in GCC countries, more than half of the consumers claim to have increased their spending on luxury goods. In the past few years, the Middle East luxury goods industry has been through a period of expansion, as major companies have grown by extending the reach of their brand distribution network and opening new stores in the region. Consumers in countries such as Saudi Arabia prefer luxury goods over conventional ones, owing to their high purchasing power and sustainable demand for these products that reflect their social status. In March 2022, Kering Group's Gucci debuted its glittering high jewellery pieces encompassing necklaces, rings, and bracelets to the United Arab Emirates for the first time, transforming a villa on Palm Jumeirah into a garden for the occasion.
Over the long term, the luxury goods market in the Middle East and Africa is expected to grow because of the increase in disposable income, growing millennial population, increasing tourism, and penetration of global market players in the region. Global market players like Gucci, LMVH, PVH, and Rolex are launching their products in the market, which is grabbing the attention of consumers. For instance, in July 2021, Versace unveiled its new boutique at The Galleria Al Maryah Island, Abu Dhabi, expanding the destination’s exceptional portfolio and reinforcing the mall’s position as the premier luxury and retail destination in the capital. The e-commerce websites are also growing in the region, which is expected to drive the market over the medium term.
MEA Luxury Goods Industry Segmentation
Luxury goods are premium, high-quality products that are not necessary for living but add value to consumers' appearance.
The Middle East and African luxury goods market is segmented by product type, distribution channel, and country. By product type, it is segmented into apparel, footwear, bags, jewelry, watches, and other accessories. The manufacturers operating in this segment are adopting various distribution networks to increase their consumer base, including single-branded stores, multi-brand stores, online stores, and other distribution channels. The market is thoroughly studied for different countries under the region, such as the United Arab Emirates, Saudi Arabia, Qatar, South Africa, and the Rest of the Middle East and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| By Product Type | |
| Clothing and Apparel | |
| Footwear | |
| Bags | |
| Jewelry | |
| Watches | |
| Other Accessories |
| By Distribution Channel | |
| Single-branded Stores | |
| Multi-brand Stores | |
| Online Stores | |
| Other Distribution Channels |
| By Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| South Africa | |
| Rest of Middle East and Africa |
MEA Luxury Goods Market Trends
This section covers the major market trends shaping the MEA Luxury Goods Market according to our research experts:
Increasing Demand for Luxury Leather Goods
Saudi Arabia and Iran are huge producers of leather, with a large number of tanneries inside the countries. Luxury leather luggage holds a major market share compared to other leather goods segments. The United Arab Emirates is one of the most attractive countries in the Middle East for luxury brands. It is a strategic center for companies deciding to enter the regional market. Therefore, competition among players is very strong in the luxury leather goods market, intensified by the growth in online shopping.
Moreover, the Middle East has one of the largest young populations in the world, and millennials in the Middle East are richer than the average. Their willingness to buy luxury leather goods is stronger, which is expected to drive more sales of luxury leather goods in the upcoming years. The footwear market in the region, on the other hand, is majorly driven by the increasing demand for luxury leather goods in the gulf countries. The United Arab Emirates and Saudi Arabia are the leading consumers of leather footwear in the region.
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United Arab Emirates Held a Significant Share in the Market
The United Arab Emirates has a huge demand for luxury goods owing to high disposable income, increasing tourism in the country, and its young population. Tourism in the United Arab Emirates is constantly growing because of the tourist spots in the region. International visitors often visit the region due to its food culture, jewelry goods, and many more.
According to the Government of Dubai tourism report of 2022, 10.2 million international visitors visited Dubai in 2022. The United Arab Emirates is an economically strong country; therefore, multinational and premium brands often launch their products in the region. Also, the penetration of e-commerce websites in the country allows consumers to have multiple options for luxury goods, which also drives the market. In April 2022, A luxury fashion firm called Business of Preloved Fashion (BOPF) joined the market in the United Arab Emirates and introduced an online market to connect buyers and sellers.
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MEA Luxury Goods Industry Overview
The Middle East and Africa luxury goods market is a competitive market with the presence of various major players, such as Rolex SA, Giorgio Armani SpA, Dolce & Gabbana, Kering SA (GUCCI), Prada SpA, Burberry Group PLC, Guerlain, L’ORÉAL, Christian Dior, and Chanel SA. The key luxury goods players are embarking on mergers and acquisitions and entering into partnerships /agreements as one of their key strategies to achieve consolidation and optimize their offerings.
Major players are focusing on introducing new product offerings in the market to cater to the interests of the consumers as per ongoing fashion trends among goods, like footwear, accessories, and luggage bags. Since leather products have a significant role to play in the luxury goods market, top companies are engaged in delivering quality leather product offerings for fashion-inspiring consumers.
MEA Luxury Goods Market Leaders
Prada S.p.A.
Rolex SA
Burberry Group plc
Christian Dior SE
Chanel S.A
*Disclaimer: Major Players sorted in no particular order
MEA Luxury Goods Market News
- November 2022: Santos de Cartier launched new series of jewelry collections that consists of rings, bracelets, and necklaces. The collection consists of a gold chain in two colors, mounted with a single or double row of coffee beans decorated with diamonds of various sizes.
- April 2022: Tribe of 6, a fash-leisure clothes brand of the Alshaya franchise group, launched in Kuwait, the Kingdom of Saudi Arabia, and the United Arab Emirates. The brand provides diversity and body positivity by providing a diverse selection of pieces, including unisex styles in a variety of sizes.
- April 2021: Aerie, a specialty apparel brand of American Eagle which is operated by the Alshaya franchise group, opened its first store in the Middle East in Kuwait. The store offers the softest apparel, sweat-ready activewear, cozy loungewear, beautiful intimates, and the chicest swimwear for women.
MEA Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Clothing and Apparel
5.1.2 Footwear
5.1.3 Bags
5.1.4 Jewelry
5.1.5 Watches
5.1.6 Other Accessories
5.2 By Distribution Channel
5.2.1 Single-branded Stores
5.2.2 Multi-brand Stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
5.3 By Country
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.3 Qatar
5.3.4 South Africa
5.3.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Strategies Adopted by Key Players
6.2 Market Positioning
6.3 Company Profiles
6.3.1 Prada S.P.A.
6.3.2 Rolex SA
6.3.3 Burberry Group plc
6.3.4 Christian Dior SE
6.3.5 Chanel S.A
6.3.6 Kering S.A. (GUCCI)
6.3.7 Dolce & Gabbana
6.3.8 Giorgio Armani S.p.A
6.3.9 Guerlain
6.3.10 Santos de Cartier
6.3.11 Alshaya franchise group (Tribe of 6, Aerie)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
MEA Luxury Goods Market Research FAQs
What is the study period of this market?
The Middle-East and Africa Luxury Goods Market is studied from 2016 - 2027.
What is the growth rate of Middle-East and Africa Luxury Goods Market?
The Middle-East and Africa Luxury Goods Market is growing at a CAGR of 8.5% over the next 5 years.
Who are the key players in Middle-East and Africa Luxury Goods Market?
Prada S.p.A., Rolex SA, Burberry Group plc, Christian Dior SE, Chanel S.A are the major companies operating in Middle-East and Africa Luxury Goods Market.
Middle East and Africa Luxury Goods Industry Report
Statistics for the 2023 Middle East and Africa Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East and Africa Luxury Goods analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Middle East and Africa Luxury Goods Report Snapshots
