UAE Cosmetics Industry to Cross $3 Billion by 2025 – An Industry Overview (2015-2025) with Discussion on the Impact of COVID-19
The UAE Cosmetics Market is forecast to cross $3 billion by 2025 on account of increasing demand from the youth population, growing adoption of western culture & lifestyle, and an increasing number of beauty salons across the country.
Also, there is rising consciousness about appearance among consumers in the UAE. The younger generation are especially keen to experiment with new cosmetics concepts.
Increasing per capita, expenditure on personal appearance is expected to propel the demand for cosmetics across the UAE.
There is a huge demand for advanced and premium beauty products, including natural and organic products, which will continue to drive the UAE Cosmetics Market during the forecast period.
SJA has already launched many brands within this category across the Middle East including – We Are Paradoxx, Syrene Skincare, Faaces, OWOW, Polished London and Balance Me!
Based on type categorisation, the market is segmented into “Fragrances & Deodorants, Bath & Shower Products, Skincare, Hair care, Makeup & Colour”.
Among these, Fragrances & Deodorants held the largest market share in the UAE Cosmetics Market in 2019, due to the prevalence of major international brands and high consumer preference towards luxurious fragrances in the country. Fragrances are a part of their lifestyles, and consumers in the UAE consider it holistic before prayers, and using scents is also considered to be sacred.
Bath & Shower products hold the second largest market share because of their regular use, and the multiple product variants that are available on the market.
Based on the regional segmentation, the market is segmented into “Dubai, Abu Dhabi, Sharjah, and Rest of UAE”.
Until 2019, Dubai held the largest market share in the UAE Cosmetics Market due to its higher GDP and higher living standards. Abu Dhabi is the second largest cosmetics market, which is also generating high demand due to continuously increasing GDP and population and prevalence of most of the international brands.
Based on the distribution channel, the UAE Cosmetics Market is segmented into: Supermarkets/Hypermarkets, Multi Branded Retail Stores, Exclusive Retail Stores, Online, Specialised Shops and Beauty Parlours/Salons.
The Supermarkets/Hypermarkets segment holds the largest share in the UAE Cosmetics Market with more consumers preferring to shop from there. Also in 2020, due to COVID-19, online methods are emerging as a preferred channel by the consumers on account of safety, as well as the closure of malls.
