GCC: Leather Market 2024

Leather Market Size in GCC

The GCC leather market rose to $X in 2021, surging by 4.1% against the previous year. The total consumption indicated measured growth from 2012 to 2021: its value increased at an average annual rate of +2.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption decreased by -3.4% against 2019 indices. Over the period under review, the market attained the peak level at $X in 2019; however, from 2020 to 2021, consumption stood at a somewhat lower figure.

Leather Production in GCC

In value terms, leather production rose rapidly to $X in 2021 estimated in export price. Over the period under review, production, however, saw a slight decrease. The pace of growth was the most pronounced in 2017 with an increase of 13%. Over the period under review, production attained the peak level at $X in 2012; however, from 2013 to 2021, production remained at a lower figure.

Leather Exports

Exports in GCC

After three years of decline, shipments abroad of leather increased by 22% to X tons in 2021. In general, exports, however, recorded a drastic downturn. The pace of growth appeared the most rapid in 2017 when exports increased by 43% against the previous year. Over the period under review, the exports hit record highs at X tons in 2013; however, from 2014 to 2021, the exports failed to regain momentum.

In value terms, leather exports surged to $X in 2021. Over the period under review, exports, however, recorded a deep slump. The pace of growth appeared the most rapid in 2017 when exports increased by 20% against the previous year. The level of export peaked at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Saudi Arabia was the main exporter of leather in GCC, with the volume of exports resulting at X tons, which was near 79% of total exports in 2021. It was distantly followed by the United Arab Emirates (X tons), generating a 16% share of total exports. Kuwait (X tons) followed a long way behind the leaders.

From 2012 to 2021, average annual rates of growth with regard to leather exports from Saudi Arabia stood at -6.7%. At the same time, the United Arab Emirates (+1.3%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing exporter exported in GCC, with a CAGR of +1.3% from 2012-2021. By contrast, Kuwait (-3.5%) illustrated a downward trend over the same period. The United Arab Emirates (+7.6 p.p.) significantly strengthened its position in terms of the total exports, while Saudi Arabia saw its share reduced by -6.3% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Saudi Arabia ($X) remains the largest leather supplier in GCC, comprising 80% of total exports. The second position in the ranking was held by the United Arab Emirates ($X), with a 16% share of total exports.

In Saudi Arabia, leather exports shrank by an average annual rate of -12.5% over the period from 2012-2021. In the other countries, the average annual rates were as follows: the United Arab Emirates (-7.3% per year) and Kuwait (-3.5% per year).

Export Prices by Country

The export price in GCC stood at $X per ton in 2021, dropping by -2.3% against the previous year. Over the period under review, the export price saw a abrupt slump. The most prominent rate of growth was recorded in 2016 when the export price increased by 17%. Over the period under review, the export prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

Average prices varied somewhat amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per ton), while Kuwait ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Kuwait (-0.0%), while the other leaders experienced a decline in the export price figures.

Leather Imports

Imports in GCC

Leather imports reduced to X tons in 2021, which is down by -7.2% compared with the previous year's figure. Over the period under review, imports saw a deep slump. The pace of growth was the most pronounced in 2013 when imports increased by 30% against the previous year. Over the period under review, imports hit record highs at X tons in 2014; however, from 2015 to 2021, imports remained at a lower figure.

In value terms, leather imports rose significantly to $X in 2021. Overall, imports showed a pronounced curtailment. The most prominent rate of growth was recorded in 2014 with an increase of 20% against the previous year. As a result, imports reached the peak of $X. From 2015 to 2021, the growth of imports remained at a somewhat lower figure.

Imports by Country

The United Arab Emirates dominates imports structure, recording X tons, which was near 81% of total imports in 2021. Oman (X tons) took a 6.7% share (based on physical terms) of total imports, which put it in second place, followed by Saudi Arabia (6.6%). The following importers - Qatar (X tons), Bahrain (X tons) and Kuwait (X tons) - each amounted to a 5.9% share of total imports.

Imports into the United Arab Emirates decreased at an average annual rate of -5.7% from 2012 to 2021. At the same time, Qatar (+10.8%) and Oman (+4.3%) displayed positive paces of growth. Moreover, Qatar emerged as the fastest-growing importer imported in GCC, with a CAGR of +10.8% from 2012-2021. Saudi Arabia experienced a relatively flat trend pattern. By contrast, Bahrain (-12.6%) and Kuwait (-27.1%) illustrated a downward trend over the same period. The United Arab Emirates (+7 p.p.), Oman (+4.2 p.p.), Saudi Arabia (+3.3 p.p.) and Qatar (+1.8 p.p.) significantly strengthened its position in terms of the total imports, while Kuwait saw its share reduced by -14.8% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported leather in GCC, comprising 76% of total imports. The second position in the ranking was taken by Oman ($X), with a 9.4% share of total imports. It was followed by Qatar, with a 6.7% share.

From 2012 to 2021, the average annual growth rate of value in the United Arab Emirates stood at -3.2%. In the other countries, the average annual rates were as follows: Oman (+2.0% per year) and Qatar (+13.8% per year).

Import Prices by Country

In 2021, the import price in GCC amounted to $X per ton, picking up by 23% against the previous year. Over the last nine-year period, it increased at an average annual rate of +3.8%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Qatar ($X per ton), while Saudi Arabia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Kuwait (+32.9%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform