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MEA footwear & leather goods market to hit $20b in 2024

MEA leather goods market is poised to grow at a compound annual growth rate of over 7%

Published: Thu 30 Nov 2023, 6:40 PM

By
Issac John

The footwear and leather goods market in the Middle East and Africa (MEA) region is on track to hit $20 billion next year in the backdrop of a booming retail sector, industry analysts said.

A study by Mordor Intelligence has forecast that the MEA leather goods market is poised to grow at a compound annual growth rate of over seven per cent to touch $21.23 billion by 2025. The growth is fuelled mostly by the adoption of omnichannel retailing in the region, the study said, adding that leather manufacturers have also been focusing on innovation in design and use of exotic leather to cater to the demand from high-end and premium customers.

“Despite inflationary pressures and the macro-economic environment, consumer spending on footwear and leather products have maintained a growth momentum, with the key demand markets of the UAE and Saudi Arabia contributing a major share.,” said Jeen Joshua, managing director of Verifair, which is organising DIFLEX 2023, the region’s leading leather and footwear industry showcase to be staged at Dubai Festival Arena, Dubai Festival City.

The two-day trade fair, running from December 11 to 13, will have 250 top-notch footwear, leather, and leather accessories producers from across the world, showcasing over 10,000 product lines.

“DIFLEX 2023 offers a one-stop-shop for prospecting new business partnerships and sourcing products from multiple global markets under one roof,” said Joshua,

Manufacturers and producers at the fair represent leading footwear and leather-producing hubs of Turkey, Egypt, India, Sri Lanka, China, and the UAE. Turkey, India, and Egypt will have official country pavilions at the show. India will have 60 top manufacturers and exporters at the show under the auspices of the Council for Leather Exports, Ministry of Commerce and Industry, Government of India.

The retail sector in the GCC has been on a buoyant revenue growth curve driven by inflation and increased consumer spending.

According to a forecast by Statista, by 2026, the value of non-food retail sales in the GCC is forecast to increase to around $39 billion compared to 2021.

The region’s retail sector growth is also being driven by the exponential adoption of e-commerce, increasing population with a dominant share of youth in the demography who are high spenders with awareness on new trends and designs.

“DIFLEX 2023 will be a dynamic platform to showcase new trends and premium products. It will offer a vantage point for industry professionals, manufacturers, retailers, and consumers to explore an extensive array of products like never before. We anticipate huge interest for the show, with the event showcasing the latest advancements in footwear design, leather goods, manufacturing processes, sustainable practices, and market trends,” said Joshua