MEA Luxury Goods Market Size (2024 - 2029)

The Middle East and Africa luxury goods market is experiencing significant growth, particularly in the Gulf Cooperation Council (GCC) countries, where consumer spending on luxury items has increased substantially. This expansion is driven by high purchasing power and a preference for products that signify social status. The market's growth is further supported by rising disposable incomes, a growing millennial population, increased tourism, and the entry of global luxury brands. The expansion of e-commerce in the region is also expected to contribute to the market's development over the medium term.

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Market Size of MEA Luxury Goods Industry

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MEA Luxury Goods Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 14.05 Billion
Market Size (2029) USD 19.02 Billion
CAGR (2024 - 2029) 6.23 %
Market Concentration High

Major Players

MEA Luxury Goods Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Middle East & Africa Luxury Goods Market Analysis

The MEA Luxury Goods Market size is estimated at USD 14.05 billion in 2024, and is expected to reach USD 19.02 billion by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).

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.

Middle East & Africa 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 clothing and 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 retail 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).

Product Type
Clothing and Apparel
Footwear
Bags
Jewelry
Watches
Other Accessories
Distribution Channel
Single-branded Stores
Multi-brand Stores
Online Retail Stores
Other Distribution Channels
Geography
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle East and Africa
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MEA Luxury Goods Market Size Summary

The luxury goods industry in the Middle East and Africa is experiencing significant growth, driven by increased consumer spending, particularly in GCC countries. This expansion is fueled by high purchasing power and a preference for luxury items that signify social status, especially in nations like Saudi Arabia. Major global brands are actively expanding their presence in the region by opening new stores and enhancing their distribution networks. The market is further bolstered by rising disposable incomes, a growing millennial population, and increased tourism, with destinations like Dubai attracting millions of international visitors. The penetration of global market players and the growth of e-commerce platforms are also contributing to the market's robust development.

The United Arab Emirates stands out as a key market within the region, supported by its high disposable income, vibrant tourism sector, and young population. The widespread use of the internet and social media has facilitated the promotion and sale of luxury goods, offering consumers a variety of options through e-commerce platforms. The region's luxury market is characterized by the presence of major players such as Rolex, LVMH, and Kering, who are engaging in strategic partnerships and product launches to cater to evolving consumer preferences. The market's growth is further supported by the introduction of new luxury offerings and the increasing acceptance of online sales channels, which provide convenience and a wide range of products to consumers.

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MEA Luxury Goods Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Rise in Tourism Expected to Drive the Market

      2. 1.1.2 Robust Luxury Market Infrastructure

    2. 1.2 Market Restraints

      1. 1.2.1 Counterfeit Goods Restricting 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 Product Type

      1. 2.1.1 Clothing and Apparel

      2. 2.1.2 Footwear

      3. 2.1.3 Bags

      4. 2.1.4 Jewelry

      5. 2.1.5 Watches

      6. 2.1.6 Other Accessories

    2. 2.2 Distribution Channel

      1. 2.2.1 Single-branded Stores

      2. 2.2.2 Multi-brand Stores

      3. 2.2.3 Online Retail Stores

      4. 2.2.4 Other Distribution Channels

    3. 2.3 Geography

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Qatar

      4. 2.3.4 South Africa

      5. 2.3.5 Rest of Middle East and Africa

MEA Luxury Goods Market Size FAQs

The MEA Luxury Goods Market size is expected to reach USD 14.05 billion in 2024 and grow at a CAGR of 6.23% to reach USD 19.02 billion by 2029.

In 2024, the MEA Luxury Goods Market size is expected to reach USD 14.05 billion.

Middle East & Africa Luxury Goods Market Report Snapshots

Middle East & Africa Luxury Goods Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)