Hike in wholesale demand steers Qatar’s economy

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Doha: Vendors across the country are expressing optimism for the market as the demand continues accelerating and driving Qatar’s revitalised economy.

Several wholesale business owners and analysts spoke to The Peninsula stating the current market and the projected outcome by the end of H1 2024.

Abdullah, an apparel store owner at Souq Waqif said “The businesses have seen an increase in 2024 compared to the pervious years. Both men’s and women’s dresses have experienced a surge in demand, with women’s higher by just 5 percent.

Another shop owner, Ahmed Ali emphasised the need to keep the momentum going. He said, “We have recovered from the pandemic times and years between 2022 and 2023 saw an ideal business phase with global events like the World Cup.”

“It has since been a fluctuating period in the market and if compared to the first four months of 2024, we are doing relatively well. I hope the momentum flows in the years to come.

Jonathan Roger, a retail expert told The Peninsula “A significant demand is witnessed in the market due to the increasing number of tourists that has captivated several unique apparel outlets in Qatar.”

“Each month, the number of arrivals to Qatar is surging significantly, and therefore, we anticipate that this will continue and contribute to the country’s growing economy,” he said.

The apparel market in Qatar is witnessing a demand hike for prime and luxury brands due to the country’s high disposable income and affluent consumer base.

According to a report by Statista, the projected revenue for the Apparel market is expected to reach $2.42bn in 2024.

Analysts note that the largest segment in this market is Men’s clothes and accessories, with a market volume of $1.3bn this year.

On the other hand, the Apparel market in Qatar is expected to amount to $882.8 per individual when it comes to per-person revenues, this year.

Statista also indicates that the average volume per person in the Apparel market is expected to be 57.7 pieces in 2024. However, by the end of the second half of 2024, 87 percent of the sales in the Apparel market will be attributed to Non-Luxury.

Market experts forecast that with the soaring demand, the sector is set to experience a volume growth of 2.7 percent in 2025.

The clothing market, however, will augment Y-O-Y by 3.6 percent at a compound annual growth rate (CAGR) in the next four years. During the forecast period, the volume of the retail business is estimated to reach 175.0m pieces.

In terms of worldwide statistics, the revenue in the Apparel market is expected to amount to a whopping $1.79 trillion, as the industry will witness a CAGR of 2.81 percent between 2024 and 2028.

Albeit Men’s apparel tops in Qatar, the largest one in the global clothing market is Women’s Apparel, which is expected to have a market volume of $0.94tn in the year.

The US leads the race in the industry expecting to generate the highest revenue of $359bn in 2024.

The Apparel market is anticipated to generate per capita revenue of $230.90 per individual in 2024, considering the global population.

During the forecast period, the volume in the apparel market is estimated to reach 196.1 billion pieces, the report said. However, the market volume growth will be increased by 1.3 percent in the next year, the data states.

Researchers also highlight that the average volume per person in the apparel market is calculated to be 24.1 pieces in 2024.

In addition to this, it is expected that 95 percent of the sales in the market will be attributed to Non-Luxury this year. Market analysts also assert that the apparel sector in China is encountering an accelerating demand for luxury brands as consumers are purchasing high-quality products.