The AIDI International Smart Diamond Association's Industry Market Committee has compiled a summary of the Middle East jewelry market, analyzing it from multiple dimensions, including materials, users, distribution channels, industry players, and national markets.
Material Analysis
Gold Segment Leads Due to High Availability
The market is segmented by material into gold, diamonds, platinum, and others.
Gold:
- Gold holds a significant market share due to its centuries-old use in making ornaments, becoming an indispensable part of life, culture, and special occasions.
- Increased spending during weddings and festivals drives the demand for gold jewelry.
- According to the World Gold Council, demand for gold jewelry in the UAE surged by 80% in August 2022.
Diamonds:
- The diamond market is expected to grow significantly during the forecast period.
- Diamonds, considered a woman's pride due to their ability to reflect light and sparkle, are increasingly popular in the Middle East and Africa. Mixed cuts, rose cuts, and teardrop-shaped diamonds offering a 360-degree view are particularly favored.
- Lab-grown diamonds are a notable trend, with manufacturers introducing fully certified imported lab-grown diamond series in the Middle East and Africa.
End-User Analysis
Dominance of the Female Segment in Jewelry
The market is segmented by end-user into male and female.
- Female Segment: Holds a significant market share due to a wide variety of products and high interest in jewelry. Increasing demand for ethnic style vintage designs and simple modern designs for working women drives market growth.
- Male Segment: Expected to grow steadily, influenced by celebrities like Harry Styles, Lewis Hamilton, and Will Smith, along with a rising gender-neutral aesthetic.
- Tiffany & Co. launched an exclusive men's engagement ring collection in June 2021, reflecting growing demand in the male and gender-neutral segments.
Distribution Channel Analysis
Growth in Offline Retail Due to Increasing Number of Boutiques
The market is segmented by distribution channel into offline retail and online retail/e-commerce.
- Offline Retail: Holds a significant market share as consumers prefer to try on jewelry before purchasing, increasing conversion rates. Manufacturers focus on opening offline stores to expand their product reach in the Middle East and Africa.
- Example: In May 2022, design company Damas opened a new boutique at Vendome Mall in Qatar.
- Online Retail/E-commerce: Expected to grow significantly during the forecast period. The increasing willingness of Gen Z and millennials to shop online and the rising internet penetration drive online retail growth. Manufacturers are launching online stores to attract consumers who prefer not to visit retail stores.
Insights into Major Countries
UAE Leading Due to Presence of Mining Sites
The Middle East and Africa market is geographically segmented into Saudi Arabia, Bahrain, UAE, Kuwait, Oman, Qatar, South Africa, and other Middle Eastern and African regions.
- UAE: One of the most important and fastest-growing markets due to the presence of mining sites and the world's largest rough diamond trading center.
- Saudi Arabia: The largest retail market with a 22% increase in gold jewelry demand in the first half of 2022.
- Qatar: Expected to grow steadily, driven by the popularity of Turkish ornaments and demand for handcrafted gold and diamond designs.
- Kuwait: Known for gold jewelry, featuring traditional open-air markets selling gold and silver ornaments.
Key Industry Players
Product Innovation and Market Expansion for High Market Share
The global market is competitive, with both domestic and international companies vying for higher market shares in the Middle East and Africa. Key industry players focus on using cutting-edge technology and revamping vintage products. Additionally, manufacturers are enhancing the design and appearance of ornaments to meet changing consumer demands and market trends.
Major Company Profiles:
- Hansa Diamonds Jewelry LLC (UAE)
- L'azurde (Saudi Arabia)
- SAFA Group (India)
- Bymystique (UAE)
- Yessayan Jewelry (Lebanon)
- Azza Fahmy Jewelry (Egypt)
- Chanel (UK)
- LVMH Moët Hennessy Louis Vuitton (France)
- Compagnie Financière Richemont S.A. (Switzerland)
- Caspian Jewelry (UAE)
Key Industry Developments:
- May 2023: India's Gem & Jewellery Export Promotion Council (GJEPC) launched the India Jewellery Exposition Centre in Mumbai to strengthen trade relations between Dubai and India.
- April 2023: Dubai-based Cara Jewelers announced the opening of its first international store in London to expand its international market presence.
- September 2022: Modern diamond jewelry brand Messika launched a special Saudi limited edition of its iconic Lucky Move Medium necklace to commemorate Saudi National Day.
- August 2022: Contractor EdgeStone launched Egypt’s first specialized gold jewelry mall, Rock Gold Mall.
- May 2022: Indian company Kalyan Jewelers launched a new showroom in Dubai's Gold Souk, offering exclusive bridal designs from India.
- May 2022: UAE's DAAMC Group announced the acquisition of Swiss luxury brand de GRISOGONO after filing for bankruptcy.
- March 2021: Saudi-based brand L’azurde launched a new women's collection featuring premium gold set with diamonds, pearls, and gemstones.
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