Men’s grooming is a challenging growth market in the beauty and personal care sector. What are the potential growth opportunities in MEA’s men’s grooming category?
The men’s grooming category has always been a slow-moving one in terms of market growth, with a small number of multi-nationals dominating the sector. While Middle East and Africa (MEA) is known as one of the fastest growing regions for the overall beauty and personal care industry, growth has been relatively stagnant in the region for the male grooming category which includes shaving, skincare, hairstyling and men’s fragrances.
According to TechSci Research the men’s grooming market in MEA was worth USD 3.58 billion (bn) in 2016 having registered a discrete Compound Annual Growth Rate (CAGR) of only 1.94 per cent between 2012 and 2016. A slightly more optimistic outlook forecasts increased growth between 2017 and 2022 at a CAGR of 3.33 per cent, in value terms. This anticipated growth can be attributed to an increasing appetite for men in the region to maintain a youthful look which is driving demand in products that fight the signs of fatigue, stress and age.
Progressive marketing campaigns with celebrity endorsements are helping to drive a greater acceptance among men to use such grooming products. With a wider array of products available and increased awareness about the benefits of these products, further growth is anticipated in the region’s men’s grooming market, which is expected to reach a value of USD 4.32 bn by 2022.
GCC Outlook
The research suggests that the GCC’s men’s grooming market will dominate this growth and is expected to reach USD 3.27 billion (bn) by 2022, accounting for more than 75 per cent of the wider region’s male grooming industry.
This anticipated growth which equates to a CAGR of 10.48 per cent between 2017 and 2022 is significantly higher relative to the rest of the region. This will be driven by Saudi Arabia and UAE which hold a near 85 per cent market share between them and is attributed to GCC’s modern male who is expected to pay
increasingly more attention to his personal grooming and in turn to adopt a more regimental beauty and personal care regime.
A traditionally popular segment, men’s fragrances dominate the male grooming category in the GCC, with a near 75 per cent market share. One of the major factors driving this dominance is the popularity and availability of oud, which has its roots firmly embedded in societal norms. One of the most expensive of all natural ingredients, oud comes from the resin of the Agar tree and has been a much sought commodity in GCC markets for many generations and is one which the modern Arabian male will continue to nurture.
Trends and market opportunities
According to TechSci Research, packaging innovation has become a significant sales driver of men’s grooming products in MEA. Increased competition amongst a large number of multinational beauty and personal care companies has also lead to a demand for more environmentally sustainable packaging materials.
Manufacturers that are looking for ways to increase volume sales are concentrating their efforts on packaging innovations. Adopting smaller pack sizes is becoming a popular move for manufacturers as they strive to increase affordability of products. This is particularly gaining traction in developing MEA countries such as Nigeria, Kenya and South Africa.
The region’s increasingly youthful population is also seen as a market opportunity as manufacturers look to target the young modern male who is becoming increasingly conscious about appearance. The region’s modern male is perceived to be more ambitious, better connected and networked, more technologically savvy, and has more spending power than ever before. This presents increased opportunity for both the local (the likes of Abdul Samad Al Qurashi Co and Arabian Oud Co) and international (think the likes of Beiersdorf and Gillette) beauty and personal care players.
According to TechSci Research, it is such changing behavioural dynamics that will really have a significant impact on the consumption of beauty and personal care products by male consumers in the region and should further help to drive growth in this otherwise slow-moving category.