Growth of the Middle East and Africa’s $30 billion beauty market is set to slow in 2017
Wednesday, Apr 19, 2017
DUBAI: The UAE has a per capita spend of around $239 (Dh877) on beauty products, making it the seventh highest in the world, according to a new report by research firm Euromonitor International.
“In terms of per capita consumption, the UAE is up two positions on 2015, making it now the seventh highest consumer of beauty products in the world in 2016,” said Iyad Hijjawi, a senior consultant at Euromonitor.
This figure is almost four times larger than the global average of $60.
The growth of the Middle East and Africa’s (MEA) $30 billion beauty market is set to slow in 2017, according to the study.
Despite being expected to grow by $12 billion in the next four years, the MEA’s share of the global $445 billion cosmetics industry will be hampered by lower growth in the GCC and Iran.
“The low oil price turmoil is definitely hitting consumer confidence in the region, especially in the GCC region,” he said.
Hijjawi was presenting his findings at a press conference for the upcoming Beautyworld Middle East event, taking place on May 14 in Dubai.
Population was a major growth driver for the region, Hijjawi said, with a birth rate of nearly 3 per cent, compared to the rest of the world which stands at 1 per cent, as was habit persistence.
The only factors that threaten this growth, he added, were product prices, which would have a “very massive effect, and very negative impact, especially on the mass market.”
In terms of country performance, Saudi Arabia maintained its position as the largest country in terms of the value of sales, with $5.53 billion in 2016, followed by the Iran, the UAE, and Egypt, all of whom saw sales of more than $1 billion.
Iraq was a new addition to the list in 2016, with sales of more than $300 million.
“With the UAE and Saudi Arabia’s growth slowing, Tunisia and Morocco will be the fastest growing markets in the region,” Hijjawi said.
According to Euromonitor’s research, there hasn’t been much change in the performance of individual categories, “with fragrances maintaining their position as the largest product segment, with sales reaching nearly $7 billion by 2021.”
Fragrances are followed closely by hair care, which is expected to exceed $6 billion by 2021.
“One of the key areas we expect to grow very fast between 2016 and 2021 will be men’s grooming,” he said.
Hijjawi added that one of the most important trends emerging for young people was ethical, cruelty-free beauty products, and there would be very large opportunities for brands presenting “green, clean, and ethical labels” in the coming years.
by Ed Clowes Staff Reporter
Gulf News 2017. All rights reserved.