The size of the Middle East and African cosmeceuticals market is forecasted to be growing at a healthy CAGR from 2021 to 2026.
The beauty and personal care products market in the Middle East and Africa is in infancy due to widespread poverty (in several regions) and several people living on less than USD 2 per day. The high disposable income in Middle Eastern countries will be the reason for their high penetration of luxury cosmeceutical products. These brands are now making their way into developing markets like Nigeria, Kenya, etc., rapidly due to the increase in disposable income and the propensity to spend more on the surface. However, these markets are expected to grow exponentially, even with the low-income population in Africa seeking to maximize their beauty spending to achieve better looks.
A major trend is a growing market for natural and personalized products in the Middle East region. For example, there is increasing interest and demand for halal beauty products in the Middle East region. As the region is mainly composed of the Muslim population, these products have gained great popularity among consumers. However, these products are not limited exclusively to the Muslim community; these products have also gained a market with non-Muslim consumers, which is the main driver of growth for halal and vegan cosmetics in the region.
The driving force for the cosmeceuticals market in the Middle East is due to the high disposable income of the region, especially in the major GCC countries, where the United Arab Emirates and Saudi Arabia has the largest populations and a considerable number of tourists that will help the growth of the industry in the region. In addition, rapid urbanization and the growth of shopping malls and shopping centers have played a key role in changing shopping habits in these developing countries.
A major factor that has shaken the industry, despite its unwavering demand, is the existence of counterfeit products. In addition, multiple factors can be found in taxes and import duties that can hamper growth.
Impact of COVID-19 on the MEA cosmeceuticals market:
Many significant industries have been affected in the Middle East due to the COVID-19. The MEA cosmeceuticals market had a significant drop in revenue in the early phase of the pandemic. Still, slowly the market had picked up its pace following the normalizing of the travel restrictions and commercial sectors. The market is expected to have a steady, healthy growth rate during the post covid- era due to awareness about cosmetics across the region.
This research report on the Middle East & African cosmeceuticals market has been segmented and sub-segmented into the following categories:
By Product Type:
By Distribution Channel:
In the Middle East, GCC countries are the fastest-growing cosmetics market due to higher per capita spending on cosmetics. For example, Saudi Arabia's cosmetics market share would increase from 55% of the market in 2017 to 62% in 2020, and the UAE cosmeceuticals market share would increase from 49% to 52% during the same period.
There is also the growing trend of “skincare as health,” which further stimulates the growth of organic and natural products. As a result, the popularity of anti-aging, anti-pollution, and anti-stress products continue to grow. Many big brands have introduced various new products in line with the latest trends in Israel, following the innovations introduced by premium brands.
Regional companies are entering the MEA market to meet growing demands. The Middle East and Africa accounted for around 18.9% of the global revenue share in 2018. Although there is an increasing demand for halal products across the Middle East region, they do not have a comprehensive regulatory system. However, Brunei has an established regulatory system that promotes and manufactures halal products. In addition, many initiatives have been taken by different Islamic countries to integrate the halal industry. For example, the Malaysian Chamber of Commerce has built a marketing center in Dubai to help grow these products and open up opportunities for manufacturers to market their portfolio; this is expected to help drive the market.
KEY MARKET PLAYERS:
A few prominent companies in the MEA cosmeceuticals market profiled in this report are L'Oreal SA, Procter & Gamble, Unilever PLC, Shiseido Co. Ltd, Revlon Inc., Groupe Clarins SA, Beiersdorf AG, and Johnson & Johnson Inc.