GCC Luxury Goods Market Size (2024 - 2029)

The GCC personal luxury goods market is poised for significant expansion, driven by factors such as increased disposable income, a burgeoning millennial demographic, and heightened tourism. The market's growth is further supported by the entry of international brands and the establishment of upscale retail spaces, which provide ample opportunities for brand expansion. The rise of e-commerce and social media has also facilitated easier access to luxury products, contributing to the market's development. Additionally, consumer awareness regarding sustainable practices is prompting companies to innovate in packaging, aligning with market trends.

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Market Size of GCC Luxury Goods Industry

GCC Luxury Goods Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 13.64 Billion
Market Size (2029) USD 22.12 Billion
CAGR (2024 - 2029) 10.15 %
Market Concentration Low

Major Players

GCC Luxury Goods Market Major Players

*Disclaimer: Major Players sorted in no particular order

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GCC Luxury Goods Market Analysis

The GCC Luxury Goods Market size is estimated at USD 13.64 billion in 2024, and is expected to reach USD 22.12 billion by 2029, growing at a CAGR of 10.15% during the forecast period (2024-2029).

In the GCC, consumer preferences for personal luxury goods are heavily influenced by material quality and design. These branded items are synonymous with premium materials, exceptional craftsmanship, and high-value aesthetics. Additionally, heightened tourism and the substantial disposable incomes in Middle Eastern nations, particularly the UAE and Saudi Arabia, are propelling the demand for these luxury items. The market is poised for long-term growth, driven by a burgeoning millennial demographic and the entry of international market players. Major global brands, such as LMVH, Chanel, Prada, and Rolex, are capturing customer attention through product innovations showcased on international platforms. For example, in April 2022, the Alshaya franchise group's fashion-leisure brand, Tribe of 6, debuted in Kuwait, Saudi Arabia, and the UAE, offering unisex styles across a diverse size range. The establishment of upscale malls in the region provides these brands with ample opportunities for operational expansion. Furthermore, the rise of social media and online shopping trends has significantly boosted the luxury footwear segment in the region, granting shoppers seamless access to luxury brands online. Brands are not only launching new campaigns but are also collaborating with celebrities to introduce exclusive product lines, spanning footwear, apparel, and accessories. The growth of e-commerce has empowered consumers with easy access to product information and pricing, further fueling the luxury goods market growth. Notably, the young affluent demographic in the GCC exhibits a heightened awareness and discernment in their luxury goods choices.

GCC Luxury Goods Industry Segmentation

Luxury goods are referred to as premium/high-end products, which are classified into clothing, watches, footwear, cosmetics, and other accessories like sunglasses.

The GCC luxury goods market is segmented by type, gender, distribution channel, and geography. Based on type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other accessories. By gender, the market is segmented into male and female. The market is segmented by the distribution channel into single-brand stores, multi-brand stores, online retail stores, and other distribution channels. The market is segmented by geography into Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. The market sizing was done in value terms (USD) for all the above-mentioned segments.

Type
Clothing and Apparel
Footwear
Bags
Jewellery
Watches
Other Accessories
Gender
Male
Female
Distribution Channel
Single branded stores
Multi-branded stores
Online Stores
Other Distribution Channels
Geography
Saudi Arabia
United Arab Emirates
Qatar
Kuwait
Oman
Bahrain
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GCC Luxury Goods Market Size Summary

The GCC personal luxury goods market is poised for significant growth, driven by factors such as increasing disposable income, a burgeoning millennial demographic, and the influx of international brands. The market is witnessing a surge in consumer interest due to the strategic entry of global players like Gucci, LVMH, PVH, and Rolex, who are introducing innovative products and expanding their presence in the region. The establishment of upscale malls and the rise of e-commerce have further facilitated this growth, providing consumers with easy access to luxury brands and enhancing the shopping experience. Social media and online shopping trends have particularly boosted the luxury footwear market in Saudi Arabia, with collaborations and exclusive releases garnering substantial consumer attention.

The digital transformation of the luxury goods sector is reshaping consumer engagement and purchasing patterns, with a significant shift towards online retail platforms. The GCC region, with its high internet penetration rates, is witnessing a rapid expansion of online luxury shopping, attracting global investors and enhancing consumer access to a wide range of products. Dubai remains a central hub for luxury retail, supported by a thriving tourism sector that continues to draw international visitors. The competitive landscape is marked by the presence of both global and domestic players, with companies focusing on expansion, product innovation, and sustainable practices to maintain a competitive edge. The market's growth trajectory is further supported by strategic store openings and brand launches across key cities in the region.

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GCC Luxury Goods Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Drivers

      1. 1.1.1 Increasing Tourism and Growing Cultural Influence

      2. 1.1.2 Aggressive Marketing and Advertising by Brands

    2. 1.2 Restraints

      1. 1.2.1 Counterfeiting Posing Threat to the Market Growth

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Clothing and Apparel

      2. 2.1.2 Footwear

      3. 2.1.3 Bags

      4. 2.1.4 Jewellery

      5. 2.1.5 Watches

      6. 2.1.6 Other Accessories

    2. 2.2 Gender

      1. 2.2.1 Male

      2. 2.2.2 Female

    3. 2.3 Distribution Channel

      1. 2.3.1 Single branded stores

      2. 2.3.2 Multi-branded stores

      3. 2.3.3 Online Stores

      4. 2.3.4 Other Distribution Channels

    4. 2.4 Geography

      1. 2.4.1 Saudi Arabia

      2. 2.4.2 United Arab Emirates

      3. 2.4.3 Qatar

      4. 2.4.4 Kuwait

      5. 2.4.5 Oman

      6. 2.4.6 Bahrain

GCC Luxury Goods Market Size FAQs

The GCC Luxury Goods Market size is expected to reach USD 13.64 billion in 2024 and grow at a CAGR of 10.15% to reach USD 22.12 billion by 2029.

In 2024, the GCC Luxury Goods Market size is expected to reach USD 13.64 billion.

GCC Luxury Goods Market Report Snapshots

GCC Personal Luxury Goods Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)