A: We recently released a report on MEA’s cosmetics market covering the 2012 to 2016 period with a forecast period of 2017 through to 2022. 

Our research forecasts the MEA cosmetics market, including men’s grooming, will reach a market size of USD 35.93 billion (bn) by 2022, thanks to a compound annual growth rate (CAGR) of 6.52% during the forecast period (2017 – 2022). In our previous forecast period (2012 – 2016) the CAGR was 4.98% so we are happy to report that the region’s cosmetics industry should enjoy increased growth in the coming years – something which will also be reflected with the ongoing growth and development of Beautyworld Middle East.   

Q: How does this breakdown across the region?

A: MEA countries outside of the GCC probably represent 59.43% of this with the GCC countries holding the other 40.57% share. As you would expect, Saudi Arabia dominates the region’s cosmetics industry with a 24.18% market share as of 2016. At that time we estimated the KSA market was worth close to USD 6 bn. United Arab Emirates (UAE) holds a 9.67% market share coming in at a value of USD 2.4 bn with the other GCC countries holding an approximate 6.72% of the MEA cosmetics market between them.  

Q: What do you attribute this renewed growth to? 

A: Some of the growth trends in the region’s cosmetics industry mirror those in the global environment, with factors such as increased disposable incomes, more brand awareness and innovative new products helping to drive growth.

However, the region does also have its own unique factors that are also influencing growth. There is a definite increase in the availability of a wider range of products across the region, many of which are introduced each year through Beautyworld Middle East. This is helping to pique consumers’ interest. We are also noting a shift in cultural norms with more women adopting the use of cosmetics in their daily routine. 

Further fuelling growth is the rise of product targeting with increased marketing of skin care or cosmetics products pertaining to different ethnic skin types. The increased choice and availability of products with targeted benefits has captured consumer attention and celebrity endorsements that consumers in the region can relate to are also helping to drive this demand.

Other factors can be attributed to: rising consciousness about grooming products among men, a growing youth population, increasing demand for products that fight signs of fatigue, stress and early ageing and an increase in women entering the work force.

Q: What market challenges do you see, if any?

A: The region’s cosmetics industry, particularly the GCC, is widely driven by imports with little or no domestic production. As a consequence, import duties, other taxes and freight charges can significantly inflate prices. However, with stringent certification processes and other challenges, domestic production is perceived as difficult and so the MEA cosmetics market is likely to continue to rely on imported cosmetics products for the foreseeable future. That is why trade exhibitions such as Beautyworld Middle East are so important when it comes to expanding product variety in the region.

There is also a lack of standardised logistics and sales channels and of professionally trained staff.

Q: And market trends?

A: Again, many of the market trends in the region’s cosmetics industry are similar to those in the global marketplace. There is a rising trend of cosmetics concept stores that offer a unique customer experience where consumers are given in depth insight on what type of cosmetics they should be using, depending on their skin type and other factors. 

Other trends we are noticing which are also reflected in the annual Beautyworld Middle East are innovative packaging, increased demand for natural and organic cosmetics and changing marketing strategies. The rise of social networks has changed the way cosmetics companies market to their consumer and there is also an increase in product promotions on reality TV shows and by regional bloggers and influencers which go a long way to enhance brand visibility.

We are also noticing increasing demand for men’s anti-ageing and skin whitening creams and an introduction of halal cosmetics in the men’s grooming sector. The availability of cosmetics products through online channels will continue to shape market trends for the foreseeable future.