Tourism to thank for UAE & Saudi Arabia cosmetics boom

By Michelle Yeomans

- Last updated on GMT

Tourism to thank for UAE & Saudi Arabia cosmetics boom

Related tags Saudi arabia Cosmetics

Thanks to tourism, both the UAE and Saudi Arabiaa cosmetics markets are booming.

Research agencies, Fast Market Research Beauty and Euromonitor have both reported that an increase in tourism and expatriates is a big factor for growth on these markets.

Other drivers include a rise in disposable incomes in the neighbouring countries, a greater number of working women, and an increase in retail development (large outlets and shopping malls).

The most lucrative segments include luxury products, colour cosmetics and male grooming products, and are forecast to continue growing in popularity.

L'Oréal Middle East is reported as the leading brand in the UAE cosmetics market by Fast Market Research.

However, according to the agency, there is not much brand loyalty among consumers, which allows smaller companies the opportunity to compete.

In Saudi Arabia, Euromonitor also reports L'Oréal to be the leading player in colour cosmetics in 2013 with 20.9% value share.

UAE residents spent $300 on beauty and cosmetic products alone last year

Euromonitor has forecasted that this figure will rise by 13% per person by 2017 and that hair care products and skin whitening creams are the most in-demand products encouraging the beauty boom in the UAE.

While many of the most popular products are marketed towards women, spending by men on personal care products is also on the rise, organizers of Beautyworld Middle East 2013, a personal care industry showcase scheduled to take place next month, said on Tuesday.

Euromonitor International asserts that men in the UAE are setting a precedent for spending on their hair care. 

The firm’s Middle East research manager, Sana Toukan, said that the male premium hair care market saw 25% growth last year. She noted that male beauty products were gaining in popularity due partly to the introduction of specialized products.

Before multinational companies were investing in moisturizing creams with skin whitening features but now you see more toners and anti-ageing creams with these features too,​” said Toukan

Despite the influx of international big brand names, traditional goods are still popular in some Gulf states, according to the research report.

Arabian oud, a traditional fragrance, boasts higher sales than any designer aftershave in Saudi Arabia, Euromonitor found.

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