Saudi Arabia Luxury Goods Market Overview, 2029

Saudi Arabia Luxury Goods Market Overview, 2029

Saudi Arabia's luxury goods market is currently undergoing significant development, impacted by a variety of economic, social, and cultural variables. One noteworthy trend is the evolving preferences of Saudi customers. Personalised experiences and one-of-a-kind products are in high demand, while established luxury brands remain popular. This movement has allowed local designers to acquire recognition by combining distinctive Arab aesthetics with worldwide labels, resulting in a blend of history and contemporary luxury purchasing trends.In terms of product categories and developing trends, luxury fashion, jewellery, watches, and fragrances continue to dominate the Saudi market. However, there is a clear increase in demand for experienced luxury, such as exquisite dining, high-end travel, and exclusive events. This increase suggests a greater taste for luxury beyond material things, reflecting Saudi consumers' desire for customised lifestyle experiences. Cultural causes and obstacles impact the dynamics of the Saudi luxury sector. The country's expanding wealth, fueled by a growing young population with high discretionary incomes, is a main driver of market expansion. Furthermore, programs such as Vision 2030, which focus on economic diversification and the development of the entertainment sector, help to boost the kingdom's luxury expenditure. Despite these changing preferences for quality, craftsmanship, and brand heritage, cultural sensitivities continue, prompting adaptation in product offerings and marketing methods to accord with local norms and values.

According to the research report “Saudi Arabia Luxury Goods Market Overview, 2029,"" published by Bonafide Research, the Saudi Arabia Luxury Goods market is growing at a CAGR of more than 6% from 2024 to 2029. The luxury market in Saudi Arabia is seeing a considerable boom, owing to a variety of factors, most notably the government's investments in megaprojects such as NEOM. These megaprojects increase demand for high-end experiences and luxury goods, creating a climate suited to upmarket consumption. Furthermore, the growth of luxury events, such as fashion shows, art exhibitions, and cultural gatherings, leads to a thriving luxury landscape, increasing consumer interest and spending on luxury goods and services. The Saudi luxury market is primed for significant expansion. This expansion is supported by a wide segmentation that caters to a variety of price points, including both the increasing premium market and the presence of existing luxury brands. As consumer preferences shift and disposable incomes rise, Saudi Arabia's luxury sector expands, creating opportunities for both global luxury conglomerates and developing local companies. The Saudi luxury market has a competitive environment that includes both established firms and developing rivals. Global luxury behemoths maintain a significant presence, capitalising on their brand prestige and global recognition to gain market dominance. Concurrently, homegrown designers and local brands are gaining strength, delivering a distinct blend of heritage and contemporary that appeals to both domestic and foreign buyers. This dynamic interplay between existing and rising firms improves the Saudi luxury industry by encouraging competition and innovation while offering consumers a varied range of options and experiences.

When categorising luxury goods, various product types play a significant role in defining the market. Clothing and apparel represent the broadest category, encompassing a wide range of items worn on the body, such as shirts, pants, dresses, and jackets. Jewellery holds its distinct category, comprising ornamental objects worn for decoration, including earrings, necklaces, bracelets, rings, and brooches, often crafted from precious metals, gemstones, and pearls. Watches, as timepieces worn for both functional and fashion purposes, form another essential product type within the luxury sector. Footwear, covering a variety of shoe types like boots, sandals, and slippers, provides both protection and style for the feet. Bags, including handbags, backpacks, and clutches, serve as containers for carrying items and have been steadily growing in demand within the luxury market. Other types of fashion items, such as hats, scarves, belts, and sunglasses, fall under a broader category, offering additional avenues for luxury consumption. Regarding end users, luxury goods cater predominantly to women, with a wide array of products tailored to their preferences and tastes. However, the market for men's luxury items is also significant, offering tailored suits, accessories, and grooming products to discerning male consumers. The segment catering to children is growing steadily, with luxury brands expanding their offerings to include kid-friendly apparel, accessories, and toys. In terms of distribution channels, retail stores remain the leading avenue for purchasing luxury goods, encompassing both standalone boutiques and multi-brand retail stores offering curated selections of luxury items. Luxury boutiques and e-commerce continue to gain traction.

From a regulatory aspect, Vision 2030 has played a critical role in easing limitations on entertainment and retail, making it easier for luxury businesses to operate and expand in Saudi Arabia. Furthermore, the government's emphasis on tightening intellectual property regulations demonstrates its dedication to protecting brands from counterfeiting, creating a more secure and hospitable environment for luxury firms to succeed in the kingdom's ever-changing market landscape. Recent industry advancements highlight Saudi Arabia's increasing luxury market. The introduction of premium online stores such as Yoox Net-a-Porter to the market in 2021 demonstrates the growing importance of e-commerce in catering to rich Saudi consumers. Furthermore, government activities focused at establishing luxury tourism destinations are consistent with the overall plan to diversify the economy and boost the country's appeal as a luxury destination. Partnerships between top Saudi streaming platforms like Shahid and worldwide fashion companies demonstrate the confluence of luxury and digital platforms, opening up new marketing and engagement opportunities in the luxury segment. These innovations highlight the dynamic nature of the Saudi luxury sector and its potential for future expansion and innovation.

The luxury retail sector is undergoing tremendous transition, with a noticeable trend towards online platforms. E-commerce platforms are rapidly expanding, driving even traditional luxury firms to build strong online stores and leverage social media marketing methods. This digital migration enables marketers to access a larger audience and capitalise on changing customer behaviours. Despite the digital revolution, physical stores continue to play an important role in the luxury sector. These physical sites, located in famous malls and high-street districts, play an important role in providing clients with an immersive brand experience as well as individualised customer service, all of which are essential components of the luxury shopping journey. In the Gulf Cooperation Council (GCC), Saudi Arabia emerges as the dominant player in the luxury industry. Its large population, economic prowess, and supportive government measures make it the market leader. The United Arab Emirates (UAE), particularly Dubai, remains a competitive rival, despite fierce competition from Saudi Arabia. Dubai's reputation as a leading shopping destination, combined with its strategic position, ensures that it remains a prominent player in the regional luxury sector, demonstrating resilience in the face of competitive pressures. The COVID-19 epidemic caused a temporary disruption in the luxury retail industry, as lockdowns and economic uncertainty reduced customer purchasing. However, the pandemic triggered significant shifts in consumer behaviour, hastening the already increasing trend of e-commerce. As a result, there has been a steady increase in demand for online luxury experiences, highlighting the continued importance of digital channels in the post-pandemic era.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Luxury Goods market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Clothing and Apparel
• Jewellery
• Watches
• Footwear
• Bags
• Other Types

By End User
• Women
• Men
• Children

By Distribution Channel
• Retail Stores
• Multi-Brand Retail Stores
• Luxury Boutiques
• Online Retail

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Luxury Goods industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.