Saudi Arabia Cosmetics Market Growth Analysis 2021
Saudi Arabia cosmetics market is experiencing a high CAGR due to the changing standards of beauty and consumer preferences regarding cosmetics, in addition to the availability of a wide range of cosmetic products.
Saudi Arabia cosmetics market continues to stabilize, with the overall market expected to grow at a CAGR of 6.7% during the forecast period. Saudi Arabia has shown significant growth as a potential cosmetic market due to the increasing population and their ability to spend on appearance and aesthetics. Therefore, cosmetic brands are increasingly launching their products to meet customers’ needs, driving market growth. The Saudi Arabia cosmetics market is also expected to benefit from the increasing penetration of luxury brands during the forecast period.
Growth Drivers
Increasing Launches of Vegan and Halal Cosmetic Products
Saudi Arabia has stringent laws regarding halal cosmetic products. Therefore, consumers are increasingly getting more conscious of the availability of vegan and halal cosmetic products. Considering this factor, cosmetic brands are actively developing vegan and halal cosmetic and skincare products to establish their brands.Saudi Arabia cosmetic manufacturers are producing products free from ingredients hindered by Islamic law, such as pork products, animal blood, etc., which is likely to drive growth in the Saudi Arabia cosmetics market during the forecast period.
Growing Penetration of Social Media and the Internet
Social media is the most popular marketing tool for cosmetic brands, as Millennial consumers prefer to discover beauty brands through social media. As consumers become more aware of the ever-changing global beauty trends via social media, they tend to stay up to date, which in turn contributes to the growth of the Saudi Arabia cosmetics market. For instance, Korean beauty brands have registered a significant boom in the Saudi Arabia market due to the Hallyu wave and the growing trend of K-pop and k-drama in the country.
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Side Effects of Excessive Use of Makeup
A majority of Saudi Arabia's population, especially women, apply makeup daily in all forms, from blushes to foundations to mascara. The habit of applying makeup every day can be harmful to skin and health, especially if not cleaned properly. This severe side effect of makeup is one of the leading restricting factors for the Saudi Arabia Cosmetics market. Furthermore, unhealthful makeup habits can cause inflammation, acne, allergies, dryness, clogged pores, and even early aging. Additionally, some makeup products can cause allergic reactions and cause skin and eye irritation.
Impact of COVID-19 on Saudi Arabia Cosmetics Market
Saudi Arabia's cosmetics market was negatively impacted by the sudden outbreak of COVID-19 and the global pandemic. As the Saudi government imposed a lockdown to deal with the increasing COVID-19 cases, retail networks of cosmetic brands were halted completely, inflicting a loss on the market. Additionally, the pandemic-induced lockdown sparked the trend of working from home. As a result, since working women were no longer required to wear makeup for professional purposes, the demand for makeup products decreased in Saudi Arabia. Consequently, the Saudi Arabia cosmetics market witnessed a sharp decline in demand.
Saudi Arabia Cosmetics Market - By Product Type
The Saudi Arabia cosmetics market is segmented into skin care, hair care, makeup, fragrances, and hygiene products based on product type. The makeup product segment accounts for the largest market share because of its wide use on a daily basis. The increasing use of makeup for the corrective aspects, such as using blush for getting a healthier look, or foundation for making a face more symmetrical, contributes to the growth of this segment in the Saudi Arabia cosmetics market. On the other hand, the skincare segment is also likely to witness a substantial share in the market during the forecast period.
Saudi Arabia Cosmetics Market - By Demography
Based on demography, the Saudi Arabia cosmetics market is segmented into women cosmetic products and men cosmetic products. The women’s cosmetics products segment captures the highest market share because of a wide range of products that caters to women’s skin and beauty needs. Furthermore, high consciousness towards appearance and look among women because of strict beauty standards in cultures also contributes to the Saudi Arabia cosmetics market. On the other hand, the men’s cosmetic products segment is also gaining significance because of changing societal norms.
Saudi Arabia Cosmetics Market - By Distribution Channel
Based on distribution channels, the Saudi Arabia cosmetics market is segmented into online channels and offline channels. The offline channel accounted for the largest market share with the availability of a wide range of products and specialty stores and brand showrooms that offer genuine products. Because offline channels allow their customers to check products on their skin and buy based on their skin needs, they are more prevalent in Saudi Arabia. However, online channels are also witnessing significant growth after the COVID-19 outbreak, as people nowadays prefer purchasing cosmetics online owing to social distancing norms.
Saudi Arabia Cosmetics Market - By End-User
Based on end-users, the Saudi Arabia cosmetics market is segmented into premium customers, mass-market, and professional. The mass-market segment accounts for the largest market share because of the high living standards of general customers in Saudi Arabia. Also, the young people in this region are willing to spend large amounts of money on cosmetics to improve their appearance. The premium customer segment also covers a substantial share in the market. It is projected to witness the highest CAGR during the forecast period because of the high demand for luxury brands.
Competitive Landscape
The leading market players in the Saudi Arabia cosmetics market are Arabian Oud, Al Quraishi, SHISEIDO, UNILEVER, Chanel, Dior, Guerlain, MAC, Proctor & Gamble, Lancôme, and other prominent players.
The Saudi Arabia cosmetics market is highly fragmented, with the presence of several cosmetic brands. The market is nevertheless dominated by specific brands such as MAC. The fact of luxury brands such as Chanel and Dior make the market extremely competitive. The companies offer a wide range of products and frequently launch products that cater to various skin types’ needs and target demographics. They invest heavily in advertisement and marketing campaigns to create brand awareness and attract potential customers. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations is also very prominent.
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