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Middle East & Africa Jewelry Market Size, Share & COVID-19 Impact Analysis, By Product Type (Necklaces, Earrings, Rings, Bracelets, and Others), By Material Type (Gold, Platinum, Diamond, and Others), By End-user (Men and Women), By Distribution Channel (Offline Retail and Online Retail/E-commerce), and Country Forecast, 2022-2029

Region : Middle East | Format: PDF | Report ID: FBI106952

 

KEY MARKET INSIGHTS

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The Middle East & Africa jewelry market size was valued at USD 22.24 billion in 2021. The market is projected to grow from USD 30.72 billion in 2022 to USD 52.24 billion by 2029, exhibiting a CAGR of 7.88% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with jewelry experiencing lower-than-anticipated demand across countries in the Middle East & Africa (ME&A) compared to pre-pandemic levels. Based on our analysis, the Middle East & Africa jewelry market exhibited a decline of 38.23% in 2020 as compared to 2019.


Jewelry is considered a trendy accessory in the Middle East region; hence, diamonds and gemstones are in high demand in the area. Gold is regarded as a sign of affluence and wealth in the Middle East culture, which is a significant factor propelling the demand for jewelry in the region. Rising population, infrastructural growth with increasing tourism, the growing spending power of tourists, and changing consumer preferences coupled with demand for premium, high-end, and designer jewelry will boost the jewelry market in the region.


Jewelry designers in the Middle East focus on making modern jewels with unique designs that reflect Arabic history to the world. Middle Eastern countries, such as Saudi Arabia, United Arab Emirates, and Bahrain, are considered global shopping destinations for jewels and electronic items. Recently, tourism in the Middle East countries has become one of the fastest-growing industries for leisure, social, or business purposes and is expected to grow significantly soon, which will boost the demand for jewels and gems in the region. According to the World Tourism Organization (UNWTO), in January, international arrivals to the Middle East destinations increased by 52% over the same month in 2021.


Many international brands such as Chanel, Louis Vuitton, and Tiffany & Co. focus on launching premium products in the Middle East due to the growing demand for modern jewel products. For instance, in May 2020, Louis Vuitton, a France-based company, launched an exclusive jewelry piece from its B Blossom Collection in the GCC region. The jewels and gems pieces were exclusively found for the Ramadan season in the Middle East region.


COVID-19 IMPACT


Low Footfall in Jewelry Stores during the Pandemic Restricted the Market Growth


The COVID-19 outbreak has affected the global economy negatively. The closure of offline retail stores in various parts of the Middle East region resulted in low footfall in jewel gem stores in 2020. The sales of jewels and gems products were highly reliant on offline retail stores, and the lockdown resulted in a steep decline in demand during the pandemic. With the unprecedented impact of COVID-19 pandemic, the government has restricted all shops, events, shows, exhibitions, and weddings for a few months, which negatively impacted the market's growth.


Manufacturing limitations, international and domestic flight restrictions, and labor and logistics shortages disrupt the global jewels and gems supply chain. Many jewelers had to shut down their shops in malls and shopping complexes. The price of gold increased during the pandemic, resulting in less demand for gold, ultimately leading to a decline in profits for gold and silver ornaments designers in 2020.


LATEST TRENDS


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Increasing E-Commerce Trend Among Consumers is Propelling the Product Demand


The e-commerce industry in the Middle East & African countries is developing rapidly. It is primarily driven by a growing tech-savvy population, online penetration, and increasing demand for luxury jewelry. E-commerce platforms have gained momentum across countries such as Saudi Arabia, the UAE, and Bahrain as consumers shifted from brick-and-mortar stores to online shopping during the pandemic. Furthermore, the availability of multiple product options and price comparisons on online shopping sites significantly increased the number of online shoppers, which was convenient for retailers as it involved zero expenditure on physical outlets or stores.


Major jewelry brands in the Middle East region, including Hand Diamond & Jewelry LLC, L’AZURDE, Safa group, and Chanel, increased their online retailing platforms to grow the Middle East & Africa jewelry market share in 2021. For instance, in October 2021, TOUS, a Spanish Jewelry brand, launched its e-commerce website in Arabic to better communicate with shoppers in the Middle East region and expand its market in the Middle East countries.


DRIVING FACTORS


Rising Consumer Spending and Growing Population to Drive Market Growth


The jewellery industry's growth is attributable to the population's growing disposable income, and the changing lifestyle of individuals in Arabic countries is set to propel market growth. Improving the standard of living of the middle-class population, along with growing spending power, is driving the development of the jewellery market in the region. Increasing working population of women in the Middle East region and rising awareness regarding modern jewellery and premium-class gems will further fuel the jewellery market growth.


According to the World Gold Council (WGC), the demand for gold jewellery in GCC countries grew by 80% in the second quarter of 2022 due to an increase in oil prices, rising income levels, and improved jewellery buying sentiment for the wedding and festival season. Furthermore, in Saudi Arabia and Kuwait, the demand for gold jewellery has increased by 22% and 24% in 2022. In addition, the Middle East & African population is gradually inclining toward sophisticated, designer, and premium jewellery. Luxury brand manufacturers, such as L'Azurde, GHASSAN, and TAIBA, are continuously involved in developing modern designer products, which will further fuel the Middle East & Africa jewellery market growth.


Growing Technological Innovations in Jewelry Manufacturing are Boosting Product Demand


The jewelry industry is adapting various technological advancements, which are changing the market dynamics. Trends, such as 3D printing and Computer Aided Design (CAD), are a few revolutions that boosted market growth in 2021. Faster production time, desired customization, a high amount of product detailing, and easy corrections for gold and silver jewelry are possible as modern technology is boosting the demand for contemporary jewelry in the Middle Eastern market.


The rise in product offerings in terms of modern design and development of jewelry for offline as well as online sales channels are propelling the market growth. The market in the Middle East region is constantly evolving regarding quality, methods, and varieties. The increasing use of 3D printing and the service of artificial intelligence to make customized and personalized designs for customers have revolutionized the industry in terms of value.


RESTRAINING FACTORS


Implementation of Value-added Taxes on Jewelry is Restricting Market Growth


On January 1st, 2018, the Middle East government announced that the gold, silver, and platinum jewelry in the United Arab Emirates would be subjected to a 5% Value Added Tax (VAT). The tax will apply to the jewelry piece and not to the making charges, making products more expensive. The wholesale sector that relies on selling its products by weight has been adversely affected by rising gold prices and higher VAT rates, which put increased pressure on the company's business or profit in the short term.


On January 1, 2022, the standard VAT rate in Bahrain increased from 5% to 10%, making Bahrain the second GCC country to raise the VAT rate from the 5% originally agreed under the VAT Framework Agreement of the GCC. An increase in the VAT rate is estimated to increase government revenue by 1.5% to 2% of GDP. Thus, changing the taxation policy of gold may have increased the price of gold jewelry, restraining the market's growth.


SEGMENTATION


By Product Type Analysis


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Increasing Demand for Necklaces such as Collars and Chokers to Drive Market Growth


Based on product type, the market is segmented into necklaces, earrings, rings, bracelets, and others.


The rings segment holds a significant share in the market, owing to increasing popularity among women and rising demand for traditional and ethnic jewelry. The rings segment is expected to grow significantly throughout the forecast period owing to increasing popularity and preference for corporate dressing rings and rising trends of personalized rings such as wedding rings, engagement rings, and promise rings in the Middle East and Africa.


Necklaces are the most popular jewelry among women in the Middle East and African countries. Trending necklaces, such as diamond collars & chokers necklaces, chain link necklaces, celestial & locket necklaces, and charm necklaces, among millennials and the growing popularity of necklace layering are driving the jewelry market growth.


Bracelets and earrings segments are also expected to grow steadily throughout the forecast period. The trend of hoop earrings with clustered diamonds, engagement bands, and tennis bracelets is driving market growth in Saudi Arabia, Turkey, South Africa, and the UAE.


By Material Type Analysis


Large Variety of Gold and Diamond Jewelry to Accelerate the Market Growth


The market is segmented into gold, diamond, platinum, and others based on material type.


Gold holds a significant jewelry market size. Gold has been used for centuries to make jewelry, making it an integral part of lifestyles, cultures, and occasions. The rising demand for gold ornaments is boosting, owing to increasing consumer spending in wedding and festive seasons. According to the World Gold Council, demand for yellow gold jewelry across the UAE surged by 80% in August 2022.


The diamond segment is expected to grow significantly during the forecast period. Diamonds are considered women’s pride and are more attractive owing to their ability to reflect light and sparkle. The demand for diamonds is growing across the Middle Eastern & African countries due to the growing popularity of mixed-cut diamonds, rose-cut diamonds, and briolette diamonds, offering a 360-degree view of the diamond. Furthermore, lab-grown diamonds are an important trend in the market and manufacturers are introducing fully-certified imported lab-grown diamond collections in the Middle East & African countries.


By End-user Analysis


Women’s Segment dominates the Market due to Jewelry being an Integral for Women’s Fashion  


The market is divided into men and women based on end-user. The women segment holds a significant share of the market, owing to the wide availability of jewelry for women and their interest in the products. Jewelry has been integral to women’s fashion and lifestyle for centuries. The growing preference for jewelry enhancing looks among women and the wide availability of jewelry products drive the market's growth. Manufacturers are launching new distinct products, particularly for women owing to increasing demand for vintage and traditional designs for ethnic looks and simple modern designs for working women.


Men segment is expected to grow steadily throughout the forecast period owing to high-profile celebrity influencers such as Harry Styles, Lewis Hamilton, and Will Smith and increasingly genderless aesthetics. Significant players in the market are introducing men's and genderless jewelry, surging the demand for jewelry among men in the MEA region. For instance, Tiffany & Co. launched an exclusive men’s engagement rings collection in June 2021.


By Distribution Channel Analysis


Increasing Number of Boutiques is Surging Product Demand


The market is segmented into offline retail and online retail/e-commerce based on distribution channel.


Offline retail holds a significant share in the market. Consumers primarily depend on offline stores, owing to increased conversion rates, and their preference to try jewelry before purchasing is surging the demand for offline retail. Manufacturers are focusing on launching offline stores to expand their products in the Middle East & African countries. For instance, Damas, a jewelry design house, launched its new boutique at Vendome Mall in Qatar in May 2022.


Online retail/e-commerce is expected to grow significantly throughout the forecast period. The growing number of Gen Z and millennials willing to shop online and increasing internet penetration drive the offline retail growth. Manufacturers are launching online stores to reach consumers who are absent from retail stores.


COUNTRY INSIGHTS


Qatar is Expected to Grow Steadily owing to the Popularity of Turkish Jewelry


Geographically, the Middle East & Africa market is categorized into Saudi Arabia, Bahrain, the UAE, Kuwait, Oman, Qatar, South Africa, and the Rest of the Middle East & Africa. The United Arab Emirates is one of the significant and fastest-growing markets. The presence of mining sites and the largest trading hub for rough diamonds worldwide contribute to regional market growth. According to the World Gold Council (WGC), the demand for gold jewellery in Saudi Arabia increased by 22% in the first half of 2022.


Saudi Arabia is the largest retail market, and prominent players focus on expanding and introducing new jewelry, especially in Riyadh and Jeddah. Qatar is expected to grow steadily, owing to the popularity of Turkish jewelry and the pearl capital. The demand for gold and diamond handcrafted custom designs is driving the market growth in this country. Kuwait is famous for gold jewelry and has several traditional souks that sell gold and silver jewelry.


KEY INDUSTRY PLAYERS


Product Innovation and Market Expansion by Major Players to Achieve High Market Share


The market for jewellery products is highly competitive and has both small and prominent players competing for higher market share in the Middle East and Africa. Major players in the Middle East & Africa jewellery market focus on revolutionizing jewelry with cutting-edge technology and vintage jewellery. Also, manufacturers are focusing on enhancing the design and looks of the jewellery to meet the ever-changing demand of consumers and market trends.


LIST OF KEY COMPANIES PROFILED:



  • Hans Diamond & Jewellery L.L.C. (UAE)

  • L'AZURDE (Saudi Arabia)

  • SAFA Group (India)

  • Bymystique (UAE)

  • Yessayan Jewellery (Lebanon)

  • Azza Fahmy Jewellery (Egypt)

  • Chanel (U.K.)

  • LVMH Moët Hennessy Louis Vuitton (France)

  • Compagnie Financière Richemont S.A. (Switzerland)

  • Caspian Jewellery (UAE)


KEY INDUSTRY DEVELOPMENTS



  • September 2022: Messika, a modern diamond jewelry house, launched a special Saudi limited edition of its iconic Lucky Move medium model necklace to mark Saudi Arabia’s National Day.

  • August 2022: EdgeStone, a contracting company, launched Rock Gold Mall, the first specialized mall in gold jewelry in Egypt.

  • May 2022 – Kalyan Jewelers, an India-based company, recently launched its new showroom at the Dubai Gold Souk. The new store will offer designs from the exclusive collection showcasing bridal jewelry designs from India. The brand’s strategy is to increase accessibility for customers in the Middle East market, where they will attract tourists to the Dubai Gold Souk in the UAE.

  • May 2022: DAAMC Group, a UAE-based Property Development Company, announced the acquisition of Swiss luxury brand de GRISOGONO, a Switzerland-based company after the company filed for bankruptcy. De GRISOGONO is a manufacturer of necklaces, earrings, rings, and bracelets. The company's strategy is to expand its business in luxury and high-end fashion products.

  • March 2021: L’azurde, a jewelry brand headquartered in Saudi Arabia, launched its new jewelry collection that is glamorous, trendy, and made with high-quality gold and encrusted with diamonds, pearls, and precious stones for women. The company launched an advertising campaign to show selected pieces for Valentine’s Day collection in addition to a limited bridal jewelry collection in 2021.


REPORT COVERAGE


An Infographic Representation of Middle East & Africa Jewelry Market

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The Middle East & Africa jewelry market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies and product types. Besides this, the research report provides insights into recent market trends and highlights vital industry developments. In addition to the details mentioned earlier, the report notes several factors contributing to the market's growth in the Middle East & Africa region.


REPORT SCOPE & SEGMENTATION






















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



By Product Type




  • Necklaces

  • Earrings

  • Rings

  • Bracelets

  • Others



By Material Type




  • Gold

  • Platinum

  • Diamond

  • Others



By End-user




  • Women

  • Men



By Distribution Channel




  • Offline Retail

  • Online Retail/E-commerce



By Country




  • Middle East & Africa (By Product Type, Material Type, End-user, Distribution Channel, and Country)

    • Saudi Arabia

    • Bahrain

    • U.K.

    • Italy

    • Kuwait

    • Oman

    • Qatar

    • South Africa

    • Rest of Middle East & Africa





Frequently Asked Questions

Fortune Business Insights says that the market was USD 22.24 billion in 2021 and is anticipated to reach USD 52.24 billion by 2029.

In 2021, the market value stood at USD 22.24 billion.

Ascending at a CAGR of 7.88%, the market will exhibit steady growth over the forecast period (2022-2029).

By product type, the rings segment is expected to dominate the Middle East market throughout the forecast period (2022-2029).

The growing population and increasing disposable income of the Middle East region are driving the market growth.

LAZURDE, SAFA Group, Bymystique, Chanel, Hand Diamond & Jewelry LLC, LVMH Moet Hennessy Louis Vuitton, and others are the leading companies in the Middle East market.

The United Arab Emirates dominated the Middle East market in 2021.

Growth in population and increase in disposable income of individuals are surging the product demand.

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