Middle East and Africa Handbags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East and Africa Handbags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Middle East and Africa handbags market is projected to register a CAGR of 5.2% during the forecast period, 2022-2027.

The sales of handbags in the Middle East and Africa region is witnessing the highest in the past decade owing to the changing fashion trend and increasing working population in the region. The rise in disposable income is an added advantage for consumers to spend more on handbags. However, the outbreak of COVID-19 has resulted in diminished consumer spending on fashion goods such as handbags and hence constrained the manufacturers to increase the price of the product to compensate for their revenue loss during this period.

Over the medium term, the market is expected to grow due to the rising popularity of handbags, particularly tote bags, satchels, and clutches among women consumers. In addition, affluent buyers increasingly prefer luxury products due to their purchasing power. This has led to the penetration of international brands in the region through the expansion of offline stores, such as luxury department stores and boutiques, across key countries including Saudi Arabia, Qatar, and UAE. For instance, in 2021, the luxury brand Dellaluna Venetian Maroquinerie debuted its presence in the United Arab Emirates by launching its exquisite handbag collection at Tryano Abu Dhabi.

Key Market TrendsStrategic Developments by Major players

Modern consumers prefer different styles of handbags and therefore companies are innovating and expanding their product line to cater to the interests of the consumers. For example, Chanel Inc., a luxury fashion brand has introduced the gold-metal and calfskin bags in the market. The other strategies include mergers and acquisitions by which companies are entering into various collaborations to expand their product portfolio and promote their products across different geographical markets. For instance, Tyler Ellis, the U.S.-based luxury handbag brand, has teamed up with bespoke Emirati Couturier Hamda Al-Fahim in the United Arab Emirates to introduce a limited edition of Perry and Lily Clutches, Lee Pouchet, and Meme Pouch. Further, shopping malls are the most preferred retail channels for buying luxury goods such as handbags as these stores showcase multiple regional and global brands of fashion accessories. Thus, manufacturers are widening their presence in shopping malls to cater to the high consumer interest in luxury handbags. For instance, in April 2021, Da Milano, a luxe leather accessories brand that offers high-quality handbags opened its new store in Dubai Mall as it is a prestigious landmark in the world, allowing the brand to broaden its spectrum and gain visibility from potential buyers.

United Arab Emirates dominates the Market in the region

United Arab Emirates consumers prefer luxury handbags over conventional ones, owing to their high purchasing power. The country is experiencing a surge in the inbound, outbound, and domestic tourism flow, as it is a luxury shopping destination. The handbag industry in the United Arab Emirates has grown steadily as a result of fashion-conscious consumers' ongoing purchases of the items. Michael Kors and Kate Spade are famous brands in the United Arab Emirates, with competitive prices that draw the country's young and ambitious population. Local and international shoppers are drawn to premium goods, fueling the rise of premium handbag sales. The majority of visitors are drawn to personal accessories, such as handbags, particularly luxury handbags. Chalhoub is the largest bag and luggage firm in the United Arab Emirates, and it serves LVMH's Louis Vuitton brand in the United Arab Emirates. All these factors drive sales growth in the handbag sector and are anticipated to boost market growth over the forecast period.

Competitive Landscape

The market studied is highly competitive, with a considerable number of regional and global players operating in the market studied. Some of the major players in the market are Bucket Bag, LVMH, Michael Kors, Hidesign, Fossil, Gucci, and Kering, among others. An advanced distribution network provides a competitive advantage to the key market players. Moreover, it is crucial for players to continuously innovate to operate and grow in the market due to the rapidly changing consumer demands and preferences in the area of fashion and personal grooming.

Additional Benefits:

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

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