KSA Apparel Market Outlook to 2030

KSA Apparel Market Overview

• The KSA Apparel market, valued at USD 17 billion, is driven primarily by increasing disposable incomes, evolving consumer preferences, and a rapidly expanding retail sector. The demand for apparel, particularly in the premium and mid-range segments, is bolstered by the Kingdoms young and fashion-conscious population. This growth is supported by the government's economic diversification efforts under Vision 2030, which emphasizes the retail sector as a key area for economic expansion.

• Dominant cities in the market include Riyadh, Jeddah, and Dammam. These cities dominate the market due to their large population densities, higher disposable incomes, and a growing expatriate population. Riyadh, as the capital, is the hub for major retail activities, while Jeddah, being a commercial center and gateway to the holy cities of Makkah and Madinah, attracts consumer spending.
• To reduce dependence on imports, the government has incentivized local apparel production under the "Made in Saudi" program. By 2024, around SAR 8 billion has been invested in textile manufacturing plants within industrial cities such as Jeddah and Riyadh. These efforts are aimed at promoting domestic production of fashion and apparel, creating job opportunities while ensuring a more resilient supply chain for the industry.

KSA Apparel Market Segmentation

By Product Type: The market is segmented by product type into men's apparel, women's apparel, children's apparel, footwear, and accessories. Women's apparel has had a dominant market share under the segmentation of product type due to shifting cultural norms that allow for more diverse and modern clothing options. Women in the Kingdom are increasingly embracing global fashion trends, which has led to a rise in demand for both modest fashion, such as abayas, and Western-style apparel.

By Sales Channel: The market is segmented by sales channel into e-commerce, department stores, specialty stores, and hypermarkets/supermarkets. E-commerce is rapidly emerging as the dominant sales channel due to its convenience, extensive product range, and competitive pricing. The penetration of internet and smartphone usage across the Kingdom has made online shopping more accessible, especially for younger consumers.

KSA Apparel Market Competitive Landscape

The market is dominated by both local retailers and international brands. The market's competitive landscape showcases an increasing trend of mergers and acquisitions, partnerships with influencers, and the entry of global fast fashion brands.

KSA Apparel Market Analysis

Market Growth Drivers

• Government Support for Retail and E-commerce Expansion: In line with the Vision 2030 plan, the Saudi government is actively supporting the growth of the retail and e-commerce sectors, particularly in the apparel market. The launch of platforms such as SADAD and the E-Commerce Council, along with financial reforms to promote digital transactions, has increased the accessibility of fashion products.
• Increased Expat Population Contributing to Apparel Sales: Saudi Arabia has seen an inflow of expatriates due to its diversifying economy, which includes the growth of the entertainment and tourism sectors. According to the Ministry of Human Resources and Social Development, the expat population reached over 10.5 million in 2024. This demographic expansion has brought different cultural influences and diverse apparel preferences, fueling demand for both traditional and western-style clothing across the market.
• Rise of Tourism as a Key Economic Driver: With Saudi Arabia's increasing focus on developing the tourism sector under the Vision 2030 plan, the market for apparel has seen a boost. The government reported that 10 million international tourists visited Saudi Arabia in 2024, driven by mega-events like Riyadh Season and the opening of cultural and entertainment hubs. This rise in tourism is boosting demand for fashion apparel, as visitors purchase clothing during their travels, benefiting retail sales across the country.

Market Challenges

• Increase in Local Apparel Manufacturing: By 2029, Saudi Arabia will see significant growth in local apparel manufacturing, supported by continued investments in domestic textile plants. The Vision 2030 plan estimates that local production will rise by an additional 50,000 units annually, reducing the country's reliance on imported garments and boosting export potential, particularly to neighboring GCC countries. This will create a more self-sufficient and competitive apparel industry.
• Shift Towards Sustainable and Ethical Fashion: Sustainability will be a key trend in the Saudi apparel market over the next five years, with both consumers and retailers becoming more eco-conscious. The Green Saudi Initiative will support the rise of sustainable fashion brands and products, with the government projecting that at least 20% of apparel sold by 2029 will come from eco-friendly sources. Retailers will also focus on transparency in their supply chains, providing consumers with more ethically sourced options.

KSA Apparel Market Future Outlook

Over the next five years, the KSA apparel industry is expected to continue its growth trajectory, driven by favorable government policies, technological advancements in retail, and increasing consumer demand for diverse fashion options. The Kingdom's Vision 2030 plan, which seeks to diversify the economy away from oil dependence, includes the expansion of the retail and fashion sectors as a key component of economic transformation.

Future Market Opportunities

• Increase in Local Apparel Manufacturing: By 2029, Saudi Arabia will see growth in local apparel manufacturing, supported by continued investments in domestic textile plants. The Vision 2030 plan estimates that local production will rise by an additional 50,000 units annually, reducing the country's reliance on imported garments and boosting export potential, particularly to neighboring GCC countries.
• Shift Towards Sustainable and Ethical Fashion: Sustainability will be a key trend in the Saudi apparel market over the next five years, with both consumers and retailers becoming more eco-conscious. The Green Saudi Initiative will support the rise of sustainable fashion brands and products, with the government projecting that at least 20% of apparel sold by 2029 will come from eco-friendly sources. Retailers will also focus on transparency in their supply chains, providing consumers with more ethically sourced options.