Market Trends of Middle East & Africa Leather Goods Industry
This section covers the major market trends shaping the MEA Leather Goods Market according to our research experts:
Specialized 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.
