Saudi Arabia beauty market now worth Dh20 billion
Jeddah will host its first Beautyworld event in October as regional love affair with make-up continues
If ever we needed proof of how important cosmetics are to the women of this region, the beauty industry in Saudi Arabia has been valued at a staggering US$5.7 billion (Dh20.9bn) this year.
Incredibly, that figure is set to rise even higher, according to Ahmed Pauwels, CEO of Messe Frankfurt Middle East. “The retail value of beauty and personal care in Saudi is estimated to grow to $6.9 billion in 2021, making it a key growth market.”
Much of that expansion will be in the perfumes arena, where, according to analysts Euromonitor International, Saudi customers will increase spending from about Dh6.6bn last year to Dh7.7bn by 2021, making fragrance the best-selling beauty item in the Kingdom by far.
With almost three decades of business experience supplying professional haircare and cosmetics within the region, Nazih Hamad, managing director of the Nazih Group, too, has noticed the expanding market.
“Studies show that Saudi Arabia is one of the main players in the Middle East and Africa beauty market,” Hamad notes. “It’s also estimated the share of premium beauty products in the Kingdom will grow from 54 per cent of the market in 2015 to 60 per cent in 2020, a promising figure that shows that Saudi is still a greener pasture. The market is young and there’s more to explore.”
Saudi Arabia has a young population. According to Statista, in 2017, 71.5 per cent of its population was between the ages of 15 and 64, with 25.1 per cent in the 0-to-14 bracket. This ever-growing number is a boon for beauty and fragrance suppliers, because with such a large proportion of the country at prime shopping age, new ideas and products are readily embraced. There are 13.4 million women in the Kingdom, and even if only half that number are keen make-up wearers, it still amounts to a lot of lipstick.
This being the Middle East, men too take great pride in their appearance, and the men’s grooming market in Saudi Arabia is valued at $559 million (Dh2 billion).
It doesn’t take a mathematical genius to understand that with such numbers, global brands are keen to bring new products to the Kingdom.
One such way for companies to offer their products is through the launch of the first-ever Beautyworld Saudi Arabia in Jeddah in October. The trade show will see more than 120 companies showcase their wares, which means more products being available to customers in the future, including organic and vegan cosmetics, as well as a wider range that is halal.
This marks the second Beautyworld event in the GCC, with Dubai already hosting Beautyworld Middle East.
Updated: September 27, 2018 10:36 AM