The Saudi Arabia luxury market size reached a value of about USD 15.7 billion in 2019. The market is further expected to increase at a CAGR of 7% between 2020 and 2025 to reach a value of approximately USD 23.6 billion by 2025.
Saudi Arabia is among the wealthiest and fastest-growing Arab nations in the world. Due to steady economic growth as well as high per capita income, the country has seen increased spending on luxury products and services like fragrances, automobiles, watches, leather goods, hotels, etc. In addition, the Kingdom is investing in economic diversification and has established retail as a key growth channel. This promotes the growth of the retail sector by promoting public spending in retail infrastructure projects. In addition, the thriving tourism industry has also created enormous opportunities for both the luxury hospitality and retail sectors.
Luxury marketing refers to the marketing of luxury products that are not considered necessary for the customer, but which make life more enjoyable. Designer garments, luxury vehicles, and costly jewellery are among the things that qualify. The luxury industry is known to be different from the mainstream consumer market since luxury customers make unique purchases that the majority of consumers cannot afford.
Based on the category, the Saudi Arabia luxury market can be divided into:
The industry on the basis of gender can be categorised into male and female.
On the basis of the distribution channel, the industry can be segmented into:
The Government of Saudi Arabia recently announced its plan to build four economic cities to foster internal trade, attract foreign direct investment (FDI), as well as diversify into non-oil industries, which, in return, boost the Saudi Arabia luxury market growth of luxury goods in the country. In addition, major luxury brands, such as Prada, Tiffany, and Mulberry, are growing their presence in Saudi Arabia by opening up single-brand stores and responding to regional demand and trends. They are now launching secondary product lines, appealing to middle and upper-middle classes who aspire to their own affordable luxury. In addition, the establishment of state-of-the-art malls also provides these brands with sufficient space to broaden their operations in the region. Furthermore, the power of social media, together with the rise of online shopping, has had a positive effect on the luxury industry in Saudi Aravbia as shoppers can now access luxury brands even through online platforms.
The report by EMR covers the macro and micro aspects of the industry by covering the historical (2015-2019) and forecast (2020-2025) trends of its various segments like category, gender, and distribution channel. The comprehensive EMR report provides an in-depth assessment of the industry based on the Porter's five forces model along with giving a SWOT analysis. It also gives the key demand and price indicators of the industry.
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Saudi Arabia Luxury Market Snapshot
7 Industry Opportunities and Challenges
8 Saudi Arabia Luxury Market Analysis
8.1 Key Industry Highlights
8.2 Saudi Arabia Luxury Historical Market (2015-2019)
8.3 Saudi Arabia Luxury Market Forecast (2020-2025)
8.4 Saudi Arabia Luxury Market by Category
8.4.1 Travel and Hotel
220.127.116.11 Market Share
18.104.22.168 Historical Trend (2015-2019)
22.214.171.124 Forecast Trend (2020-2025)
126.96.36.199 Market Share
188.8.131.52 Historical Trend (2015-2019)
184.108.40.206 Forecast Trend (2020-2025)
8.4.3 Personal Luxury Goods
220.127.116.11 Market Share
18.104.22.168 Historical Trend (2015-2019)
22.214.171.124 Forecast Trend (2020-2025)
8.4.4 Food and Drinks
126.96.36.199 Market Share
188.8.131.52 Historical Trend (2015-2019)
184.108.40.206 Forecast Trend (2020-2025)
8.5 Saudi Arabia Luxury Market by Gender
220.127.116.11 Market Share
18.104.22.168 Historical Trend (2015-2019)
22.214.171.124 Forecast Trend (2020-2025)
126.96.36.199 Market Share
188.8.131.52 Historical Trend (2015-2019)
184.108.40.206 Forecast Trend (2020-2025)
8.6 Saudi Arabia Luxury Market by Distribution Channel
8.6.1 Monobrand Stores
220.127.116.11 Market Share
18.104.22.168 Historical Trend (2015-2019)
22.214.171.124 Forecast Trend (2020-2025)
8.6.2 Multibrand Stores
126.96.36.199 Market Share
188.8.131.52 Historical Trend (2015-2019)
184.108.40.206 Forecast Trend (2020-2025)
8.6.3 Online Stores
220.127.116.11 Market Share
18.104.22.168 Historical Trend (2015-2019)
22.214.171.124 Forecast Trend (2020-2025)
9 Market Dynamics
9.1 SWOT Analysis
9.2 Porter’s Five Forces Analysis
9.2.1 Supplier’s Power
9.2.2 Buyers Power
9.2.3 Threat of New Entrants
9.2.4 Degree of Rivalry
9.2.5 Threat of Substitutes
9.3 EMR’s Key Indicators for Demand
9.4 EMR’s Key Indicators for Price
10 Value Chain Analysis
11 Competitive Landscape
11.1 Market Structure
11.2 Key Players' Market Share
11.3 Key Players Profile Analysis
12 Industry Events and Developments
List of Figures and Tables
1. Saudi Arabia Luxury Market: Key Industry Highlights, 2015 and 2025
2. Saudi Arabia Luxury Historical Market: Breakup by Category (USD Billion), 2015-2019
3. Saudi Arabia Luxury Market Forecast: Breakup by Category (USD Billion), 2020-2025
4. Saudi Arabia Luxury Historical Market: Breakup by Gender (USD Billion), 2015-2019
5. Saudi Arabia Luxury Market Forecast: Breakup by Gender (USD Billion), 2020-2025
6. Saudi Arabia Luxury Historical Market: Breakup by Distribution Channel (USD Billion), 2015-2019
7. Saudi Arabia Luxury Market Forecast: Breakup by Distribution Channel (USD Billion), 2020-2025
8. Saudi Arabia Luxury Market Structure
In 2019, the Saudi Arabia luxury market attained a value of nearly USD 15.7 billion.
In the forecast period of 2020-2025, the market is projected to grow at a CAGR of 7%.
By 2025, the market is estimated to reach a value of about USD 23.6 billion.
The major drivers of the industry such as rising disposable incomes, increasing population, increased spending on luxury products and services, and economic diversification are expected to aid the market growth.
The rising move away from the country’s dependency on oil and the rising expat population are expected to be the major trends driving the market growth.
The major categories in the industry are travel and hotel, cars, personal luxury goods, and food and drinks, among others.
The leading gender types to which the industry caters to are male and female.
The most significant distribution channels in the industry are monobrand stores, multibrand stores, and online stores, among others.
The Saudi Arabia luxury market attained a value of USD 15.7 billion in 2019 driven by the growing disposable incomes and rising demand for luxury goods. Aided by the rising attempts for economic diversification in the country, the market is expected to witness a further growth in the forecast period of 2020-2025, growing at a CAGR of 7%. The market is projected to reach USD 23.6 billion by 2025.
EMR’s meticulous research methodology delves deep into the market, covering the macro and micro aspects of the industry. Based on its categories, the Saudi Arabia luxury market can be segmented into travel and hotel, cars, personal luxury goods, and food and drinks, among others. The industry, on the basis of gender, can be divided into male and female. On the basis of distribution channels, the market is categorised into monobrand stores, multibrand stores, online stores, and others.
The major drivers of the market such as rising disposable incomes, increasing population, increased spending on luxury products and services, and economic diversification are expected to aid the market growth. EMR’s research methodology uses a combination of cutting-edge analytical tools and the expertise of their highly accomplished team, thus, providing their customers with market insights that are accurate, actionable, and help them remain ahead of their competition.
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