MIDDLE EAST & AFRICA LEATHER GOODS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

MIDDLE EAST & AFRICA LEATHER GOODS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East & Africa Leather Goods Market is forecasted to reach USD 21.23 billion by 2025 growing at a CAGR of 7.06% during the forecast period (2020 - 2025).

Key Highlights

• Innovation in design and the use of exotic leather to manufacture products have enabled manufacturers to cater to the demand for high-end and premium customers. Also, key market players are focused on designing personalized and customized leather goods for attracting consumers to spend more on exclusive products.
• The adoption of omnichannel retailing all over middle east & africa will be one of the significant factors that are expected to drive leather goods industry growth. Product improvement, use of social media platforms to increase consumer engagement and awareness about product launches, and the adoption of appropriate distribution channels are some of the strategies adopted by leather handbag manufacturers to promote their products.

Key Market TrendsSpecialized Leather Processing Hub leading to an Increase in Production and Exports

Global leather manufacturers and brands can evaluate potential acquisitions at the Middle East and identify key business opportunities to control supply, costs, and quality of raw leather products and supplies, as the Middle East is expected to become the hub for leather manufacturing in the future, thus, aiding in the increased production of quality leather goods. Manufacturers are also looking to outsource the production of value-added processed goods and labor-intensive production to improve price competitiveness. For instance, In one of the UAE companies, such as Al Khaznah Tannery, production is about two thousand pieces, and the annual production is one and a half million feet. Moreover, its exports are increasing in India, East Asia, China, and Europe. The source of the graph provided is from General Authority for Statistics (Saudi Arabia) showing the operating revenue from leather and related products manufacturing.

Saudi-Arabia Remains the Fastest Growing Country

In Saudi Arabia, companies, such as Saudi Leather Industries Company, a specialized company in all leather product categories, offering a wide range of leather footwear and other safety shoes use vamp leather to ensure protection. Consumers in the region prefer luxury goods over conventional ones, owing to their high purchasing power and sustainable demand for these products that reflect their social status. Such factors have led companies, such as MCM (Mode Creation Munich), to open their first boutique in Saudi Arabia to tap the market potential. The boutique offers a wide range of luxury leather goods and accessories, such as bags, purses, and wallets. The country also exports many leather products globally, due to the presence of large number of tanneries, such as Al-Ahli Leather Factory Company Ltd., that use high-end technology from European companies that are renowned for their leather processing industry.

Competitive Landscape

Middle East leather goods market is hugely influenced by expansion of international players in the region. The companies, like Kering SA, LVMH , Chanel SA, and Hermès International SA are the most active among all the key players in the market and the key players with better net sales performance and expansion investment plans are gaining more market share in this region. The key leather 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. Moreover, these players merge or acquire the leather tanneries to inflate the production procedures and achieve dominance in the leather goods market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Adidas AG
LVMH
Ralph Lauren Corporation
Michael Kors Holdings Ltd.
Hermes International S.A.
Prada S.p.A.
Capri Holdings Ltd
Louis Vuitton
Kering S.A.

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