logo
Home> Blog> 2024 Beauty Industry Trends: Why the Middle East & North Africa Markets Are Growing Rapidly

2024 Beauty Industry Trends: Why the Middle East & North Africa Markets Are Growing Rapidly

08/10/2024
Share:

The Middle East’s beauty industry is undergoing a dramatic transformation, with the market expected to reach $60 billion by 2025. This growth is driven by a confluence of factors: high spending power in countries like Saudi Arabia and the UAE, emerging trends such as clean beauty and A-Beauty (Arab Beauty), and a surge in digital engagement among a young, tech-savvy demographic. The region’s beauty landscape is being reshaped by rapid urbanization, increasing disposable incomes, and a population eager to explore new products and services. Key to success in this diverse market is understanding the unique consumer behaviors across different countries, from the luxury-oriented Gulf Cooperation Council (GCC) nations to the value-driven Egyptian market. As the demand for premium skincare, innovative makeup, and halal-certified products continues to soar, brands that can navigate cultural influences and adapt to local preferences stand to capture a significant share of this vibrant and expanding market.

Middle East Gulf Region
Middle East Gulf Region

Within the GCC, Saudi Arabia stands out as the largest and fastest-growing beauty market. The kingdom’s beauty industry is thriving due to several key factors:

 

High consumer spending: Recent reports indicate that Saudis are now the highest spenders on beauty products in the Middle East, reflecting changing cultural norms and increasing openness to global beauty influences.

Economic diversification: The Vision 2030 initiative, aimed at reducing Saudi Arabia’s dependency on oil, has spurred investments in various sectors, including retail and consumer goods. This strategic framework has created a favorable environment for beauty brands seeking to enter the market.

Increased brand participation: Events like Beautyworld Saudi Arabia have seen substantial growth, doubling in size in recent editions. These platforms provide international brands with opportunities to engage local consumers and showcase their offerings.

Cultural shift: Evolving societal norms regarding personal grooming and aesthetics have led to greater acceptance of diverse beauty products among Saudi consumers. This shift is evident in the rising popularity of skincare regimens and makeup among both men and women.

Consumer Preferences Across Key Markets

The Middle East beauty market exhibits diverse preferences across different countries, influenced by cultural, economic, and demographic factors. Let’s explore the evolving consumer preferences in key markets:

 

Saudi Arabia: Luxury and Inclusivity

 

Saudi Arabia’s beauty market is characterized by a growing appetite for luxury products and inclusivity. The country’s younger population, with 70% under the age of 30, is highly influential in shaping beauty trends. This demographic is digitally savvy, frequent consumers of social media, and eager to experiment with new products.

Saudi consumers have a strong preference for luxury beauty products, particularly in makeup and fragrances. The country’s rising disposable income has enabled consumers to explore premium brands, making it a significant market for international luxury labels. Additionally, social and cultural changes, such as increased visibility of women in the workforce, have contributed to shifting beauty preferences, encouraging a more open display of beauty as a form of self-expression.

Beautyworld Saudi Arabia Event
Beautyworld Saudi Arabia Event

United Arab Emirates (UAE): Premiumization and Innovation Hub

 

The UAE stands out as a hub for luxury and innovation in the beauty industry. With 60% of its population under 25, it’s another youthful market with a high affinity for digital interactions. Beauty preferences in the UAE lean heavily towards premium products, driven by a wealthy consumer base and a focus on high-quality, problem-specific beauty solutions.

The country serves as a gateway for global brands entering the Middle East, with Dubai acting as a major retail center. Consumers in the UAE seek out innovative beauty products, from advanced skincare to high-end fragrances. The market is also characterized by a strong focus on e-commerce, with many consumers turning to online platforms for their beauty needs. Offline, beauty stores dominate sales, accounting for about 80% of market spend, reflecting a preference for luxury retail environments.

 

Egypt: Value-Driven and Mass-Market Oriented

 

In contrast to the luxury inclination of Saudi Arabia and the UAE, Egypt represents a value-driven market. With a median age of 24 and a large segment of the population from lower-income households, affordability is key to beauty consumption in Egypt. Consumers prioritize accessible price points and multi-purpose products that offer value for money.

While premium products have a presence, mass-market brands dominate, particularly in categories like hair care and skincare. Egyptian consumers also show a growing interest in beauty products that address specific needs, such as hydration and sun protection, due to the country’s dry climate. This market is less about brand prestige and more about delivering effective products at a reasonable price.

 

Kuwait and Other GCC Countries: Balancing Tradition and Modernity

 

In other Gulf Cooperation Council (GCC) countries like Kuwait, beauty preferences balance tradition with modern influences. Consumers are open to new trends but also retain a strong appreciation for local ingredients and beauty rituals that align with cultural norms. The demand for halal-certified beauty products is notable across these markets, offering a key opportunity for brands that align with Islamic values.

As with other GCC countries, Kuwait has seen a rise in the popularity of premium beauty products, driven by increasing disposable incomes and a desire for quality. The focus on digital transformation is also prevalent here, with social media playing a central role in shaping beauty trends and influencing purchasing decisions.

Set of Personal Care Products
Set of Personal Care Products

Cultural Influences on Beauty Standards

The Middle Eastern beauty market is uniquely shaped by cultural influences that blend tradition with modernity:

 

Traditional rituals meet modern trends: Beauty practices often integrate indigenous ingredients like rosewater and oud with modern formulations to appeal to contemporary consumers.

Social and religious influences: In countries like Iran, the hijab law shapes the beauty market, leading to a focus on facial cosmetics as a form of self-expression. Beauty rituals are also an integral part of social gatherings among women, reinforcing community bonds.

Shifting beauty ideals: While Western beauty standards have traditionally influenced regional preferences, there is a growing trend towards embracing natural Middle Eastern features like fuller lips, bold brows, and prominent cheekbones. Influencers and celebrities like Huda Kattan have played a significant role in redefining beauty standards and promoting a more localized aesthetic.

Emerging Beauty Trends

Several trends are redefining the beauty landscape in the Middle East, reflecting both global influences and localized needs:

 

A-Beauty (Arab Beauty): Mirroring the success of K-Beauty and J-Beauty, A-Beauty focuses on using native ingredients to create products tailored for the region’s hot, dry climate. Brands like Asteri Beauty have positioned themselves to meet these needs, offering formulations that emphasize hydration and skin protection.

Clean and conscious beauty: The demand for clean and conscious beauty products has grown as consumers become more educated about cosmetic ingredients. This trend ties into the rising popularity of halal-certified beauty products, catering to Muslim consumers seeking products that align with their religious values.

Men’s grooming market: The men’s grooming segment is experiencing significant growth, especially in Gulf states. As societal perceptions around male grooming have become more accepting, men in countries like Saudi Arabia are increasingly investing in skincare and grooming products. This shift represents a broader trend towards embracing personal care across genders, breaking down previous stigmas around male beauty routines.

A-Beauty (Arab Beauty)
A-Beauty (Arab Beauty)

Fragrance Market Insights in the GCC

The fragrance market in the Gulf Cooperation Council (GCC) region is a significant segment of the broader beauty and personal care industry, which is projected to reach $60 billion by 2025. The GCC’s rich cultural heritage and evolving consumer preferences create a unique landscape for fragrance brands.

Key Growth Drivers

Cultural Significance: Fragrance holds a prominent place in Middle Eastern culture, often associated with hospitality, luxury, and personal identity. Traditional scents, such as oud and musk, are deeply rooted in local customs and are frequently used in social settings.

Rising Disposable Income: Economic growth and increasing disposable incomes in the GCC countries, especially Saudi Arabia, have led to higher spending on luxury goods, including fragrances. As consumers become more affluent, they seek premium and niche fragrance options.

Urbanization and Globalization: Rapid urbanization has resulted in a younger demographic that is more exposed to global beauty trends. The influx of international brands into the region has diversified consumer choices and heightened competition.

E-commerce Expansion: The rise of online shopping platforms has made it easier for consumers to access a wide range of fragrance products, including niche brands that may not have a physical presence in the region.

Fragrance Exhibition in Beautyworld Expo
Fragrance Exhibition in Beautyworld Expo

Preferences and Trends

Personalization: Consumers are increasingly seeking personalized fragrances that reflect their individual identities. Brands that offer customization options or unique scent experiences are gaining popularity.

Clean Beauty Movement: There is a growing demand for clean and sustainable fragrances. Consumers are becoming more conscious of the ingredients used in perfumes, leading brands to reformulate products with natural components.

Influence of Social Media: Social media platforms play a crucial role in shaping consumer preferences. Influencers often showcase fragrance collections, driving trends and encouraging followers to explore new scents.

The Rise of Niche Fragrances

Niche fragrance brands have gained traction in the GCC market as consumers seek unique olfactory experiences. Brands like Amouage, which blends traditional Middle Eastern ingredients with modern perfumery techniques, exemplify this trend. Amouage has successfully positioned itself as a luxury brand that resonates with both local and international consumers. Here are emerging trends business owners should consider:

 

Sustainability: The fragrance industry is witnessing a shift towards eco-friendly practices. Brands are focusing on sustainable sourcing of ingredients and environmentally friendly packaging solutions to appeal to conscious consumers.

Local Ingredients: There is an increasing interest in fragrances that incorporate local ingredients, such as oud, which is derived from agarwood and holds cultural significance in the region. This trend not only supports local economies but also enhances the authenticity of the products.

Gender Fluidity: The concept of gender-neutral fragrances is gaining popularity, reflecting broader societal changes regarding gender identity. Brands are creating scents that appeal to all genders, moving away from traditional male and female classifications.

Amouage perfume
Amouage, a fragrance house founded in Oman in 1983

Challenges for International Brands Entering the Market

Entering the GCC beauty market presents numerous challenges for international brands, stemming from cultural, regulatory, and competitive dynamics. Understanding these hurdles is crucial for successful market penetration and long-term sustainability.

 

Cultural Nuances: The GCC region is characterized by diverse cultural practices and consumer preferences that vary significantly between countries. For example, what appeals to consumers in the UAE may not resonate in Saudi Arabia. Brands must conduct in-depth market research to understand local customs, beauty standards, and consumer behavior.

   – Example: A Western beauty brand that launches a marketing campaign featuring scantily clad models may face backlash in conservative markets like Saudi Arabia. Adapting marketing strategies to align with local values is essential.

 

Regulatory Compliance: The regulatory landscape in the GCC can be complex and varies by country. Brands must navigate stringent regulations related to product ingredients, labeling, and advertising.

   – Example: In Saudi Arabia, the Saudi Food and Drug Authority (SFDA) imposes strict guidelines on cosmetic products. Non-compliance can lead to product recalls or bans, making it critical for brands to ensure their formulations meet local standards.

 

Distribution Challenges: Establishing effective distribution channels can be difficult due to the region’s fragmented market structure. Brands often need local partners who understand the intricacies of logistics, retail environments, and consumer preferences.

   – Example: International brands like L’Oréal have successfully partnered with local distributors who possess valuable market insights, enabling them to navigate the complexities of retail in the region.

 

Brand Recognition: New entrants may struggle with brand recognition in a market dominated by established local and international players. Building brand awareness requires significant investment in marketing and outreach efforts.

   – Example: Niche brands like Amouage have built their reputation through storytelling and heritage marketing, emphasizing their unique positioning as luxury brands rooted in Middle Eastern culture.

Beautyworld Expo
Beautyworld Expo

Local vs. International Brand Competition

The competitive landscape in the GCC beauty market features a mix of local and international brands vying for consumer attention. Understanding the dynamics between these players is essential for international brands looking to establish a foothold.

 

Local Brands’ Advantages: Local brands often have a deeper understanding of cultural nuances, consumer preferences, and regional trends. They can leverage traditional ingredients and practices that resonate with consumers.

   – Example: Khalis Perfumes, a UAE-based brand, has successfully captured market share by offering fragrances that incorporate traditional Middle Eastern scents like oud. Their products appeal to both local consumers and expatriates seeking authentic experiences.

 

International Brands’ Strengths: Established international brands benefit from global recognition, extensive marketing resources, and established supply chains. They often introduce innovative products that set trends within the market.

   – Example: Estée Lauder has successfully entered the GCC market by adapting its product lines to include shades suitable for Middle Eastern skin tones while leveraging its global reputation for quality.

 

Collaborative Opportunities: There is potential for collaboration between local and international brands. Partnerships can enhance brand visibility and credibility while allowing international players to tap into local expertise.

   – Example: Collaborations between Western brands and local influencers or artisans can create unique product offerings that blend global standards with local authenticity.

 

Emerging Trends Influencing Competition: The rise of clean beauty and sustainability has created opportunities for both local and international brands to differentiate themselves. Consumers are increasingly seeking products that prioritize ethical sourcing and environmentally friendly practices.

   – Example: Brands like Herbivore Botanicals, which emphasize natural ingredients and sustainable packaging, are gaining traction among environmentally conscious consumers in the GCC.

Herbivore Botanicals Beauty Products
Herbivore Botanicals Beauty Products

Final Notes

The GCC beauty market, particularly its fragrance sector, presents a landscape rich with opportunity and complexity. Driven by cultural significance, rising disposable incomes, and rapid urbanization, the market is poised for substantial growth. However, success in this region demands a nuanced understanding of local consumer behavior, which is shaped by a unique blend of cultural heritage and emerging global trends. Brands entering this market must navigate challenges including regulatory compliance, distribution complexities, and competition from established local players. The key to thriving in this dynamic environment lies in authentically engaging with local traditions while embracing modern trends such as personalization, sustainability, and inclusivity. For both international and local brands, the ability to adapt strategies—whether through partnerships with local distributors, collaborations with influencers, or the development of tailored product lines—will be crucial. As the GCC beauty market continues to evolve, those brands that can successfully balance respect for cultural nuances with innovation and global appeal will be best positioned to capture the immense potential of this vibrant and growing market.

 

The 2024 Beautyworld Middle East is set to be a monumental event, taking place from October 28th to 30th at the Dubai World Trade Centre. This year’s edition marks the 28th iteration of the region’s largest international trade show for beauty and wellness, and it promises to be bigger than ever, with over 1,900 exhibitors and an expected attendance of around 70,000 industry professionals. The event will showcase a diverse range of products across nine segments, including beauty, hair, fragrance, and personal care, providing a unique platform for brands to connect, collaborate, and innovate.

beautyworld 2024
2024 Beautyworld Expo Flier

Jarsking‘s presence at this prestigious expo will allow the brand to engage with key stakeholders in the beauty industry, highlighting its innovative container packaging solutions tailored for the cosmetics and personal care sectors. As consumer demand for sustainable and high-quality packaging solutions grows, Jarsking aims to showcase its commitment to meeting these evolving needs while emphasizing its role in the broader beauty ecosystem. By participating in Beautyworld Middle East, Jarsking not only seeks to expand its market reach but also to foster valuable connections that can enhance its business opportunities in this vibrant region.

Beautyworld Middle East 2024
Beautyworld Middle East 2024

Recent Blog