According to the latest report by IMARC Group, titled “GCC Luxury Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the GCC luxury market reached a value of more than US$ 35 Billion in 2018. Luxury goods, also known as superior goods, are products related to wealth and exclusivity. These lifestyle products are not essential for a living but are pleasant to possess. Consumers differentiate these products from necessity products and services based on properties such as rarity, symbolism and quality. At present, there are several luxury services providers, including restaurants, hotels and clubs, operating in the GCC region who are targeting wealthy and discerning consumers. Along with this, various international luxury brands have also expanded their presence in the GCC which has further helped in promoting the growth of the sector.
In the GCC region, there has been a shift in consumer habits towards luxury goods in line with the changing fashion and economic scenario. Apart from this, there has been a significant rise in tourist spending, especially from Chinese and European visitors, which is providing a thrust to the GCC luxury market. The increasing influence of social media is also influencing the sales of luxury products . Moreover, the young population of the GCC countries is wealthier than the millennials in other parts of the world. However, rising geopolitical tensions and conflicts, as well as declining oil prices, are some of the factors that can pose a risk to the stability of the GCC luxury market. Looking forward, the market value is projected to reach more than US$ 54 Billion by 2024, expanding at a CAGR of 7.4% during 2019-2024.
- Based on types, the market has been segmented into travel and hotels, cars, personal luxury goods, and food and drinks. Amongst these, travel and hotels are the most popular luxury segment preferred by consumers in the region.
- The report has analyzed the GCC luxury market on the basis of genders, wherein males exhibit a clear dominance.
- The market is categorized according to various distribution channels which include mono-brand stores, multi-brand stores, online stores and others.
- On a geographical front, Saudi Arabia and the UAE represent the largest luxury markets in the GCC, holding the majority of the market share. This growth is being led by favorable economic changes and increasing tourism in both countries. Some of the other major markets include Kuwait, Qatar, Oman and Bahrain.
- The competitive landscape of the GCC luxury industry has also been analyzed with the profiles of prominent market players.
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