The e-book identifies how the beauty market in the Middle East and North Africa is changing and which trends are shaping the regional market.
“The Middle East continues to be one of the most influential regions internationally for the beauty and wellbeing industry. With impressive growth figures, we expect to see continued strong interest coming in from international brands,” says Sana Toukan, Research Manager for the Middle East.
Overall Beauty and Personal Care will be driven by the region’s economic resilience, which is fuelling rising disposable income levels, a strong presence of global players and a shift towards specialist retailers.
Some trends highlighted in the E-Book:
Specialist retailers gain share in the United Arab Emirates. The ongoing shift towards specialised health and beauty retailers will continue with consumers relying on supermarkets and hypermarkets for the purchase of basic products. Rising disposable income levels will encourage a growing interest in specialised products and premium brands. Beauty specialist retailers will benefit most from this trend offering a wide range of premium products and expert sales assistance. Department stores will pose stronger competition due to premium positioning and a strong appeal to tourists.
Religious and international tourism drive growth in Saudi as the government is planning further expansions in travel and tourism to allow 88 million visitors by 2020. Tourism continues to be characterised by the huge number of visitors that travel throughout the year for religious purposes represented in Umrah and Hajj. Fragrances and sets/kits purchased as gifts are particularly popular amongst religious tourists with premium men’s fragrances expected to see the highest growth.
Multinationals reaffirm investment in Egypt. Despite the 2011 revolution and the perception of riskier markets the investments already made in Egypt and the country’s long-term potential have enticed most to re-open business and affirm their commitment to trading. Operating costs have been mounting, both in terms of the raw materials needed to produce goods in Egypt, and the cost to import goods which has especially affected premium brands as they are more likely to be imported.
Supermarkets and Hypermarkets flourish in Iran with shares growing rapidly during the last five years, supported by the opening of Carrefour’s first branch in Tehran and the rapid expansion of Shahrvand stores. Independent supermarkets are also rapidly increasing, which has completely changed shopping patterns, especially in key urban areas. Shoppers who used to go to small grocery retailers or pharmacies now have access to a broader range of brands.