Beauty and Personal Care in Middle East and Africa

Delivery

This report comes in PPT.

Key Findings

Natural and ethical products enjoying increasing demand

There has been a growing trend towards clean beauty in many categories of beauty and personal care in Saudi Arabia. Consumers are increasingly looking for more natural but also more ethical products. This demand is being met by brands such as RÓEN and Glow Recipe, offering vegan and cruelty-free products that use sustainable ingredients and packaging.

E-commerce growing but still a relatively minor channel

Although the e-commerce share of beauty and personal care retail sales remains relatively small in most countries, it is generally continuing to grow. While grocery retailers and health and beauty specialists still tend to dominate distribution, with small local grocers and department stores still playing role in some countries, a gradual shift to omnichannel operations is being seen in the region.

Pricing gap between mass and prestige products increasing

There has been a steady widening of the pricing gap between mass and prestige beauty products in the United Arab Emirates, from around 70% to 75-85%. Increasing disposable incomes among local consumers have seen a growing willingness among shoppers to pay a premium for quality ingredients, unique formulations and luxurious experiences. Many beauty brands are therefore expanding their high-end product ranges to meet this growing demand.

Vision 2030 should help the Saudi Arabian market to continue growing

As part of its Vision 2030 policy, Saudi Arabia is targeting 100 million visitors a year to the country by 2030, whether coming for business, leisure or religious reasons. With Vision 2030 also looking to increase the number of women in the country’s workforce, this should also help improve household incomes and provide a boost to local beauty and personal care sales.