Market Trends of United Arab Emirates Color Cosmetics Industry
Increasing Per Capita Expenditure on Cosmetic Products especially K-beauty cosmetic products
- There has been an increasing emphasis on looking polished and well-put together among residents in the United Arab Emirates, increasing per capita expenditure on cosmetic products. As consumers spend considerably more, there is substantial demand for cosmetics such as organic and halal. The organic and halal beauty segments have grown significantly in the past few years.
- Earlier, there was little distinction between the halal beauty and organic skincare segments. Still, many international brands have now researched the needs of consumers and have launched product lines that seek to cater to the demand in both segments. Consumers in the United Arab Emirates strongly favor French beauty products, known for their high quality. French beauty and skincare brands are highly trusted in the industry, and a growth in their demand is seen among consumers in the country.
- Korean beauty products have drawn a lot of attention in this region. While promoting beauty influencers drives sales, Hallyu, the Korean wave, is another factor in the widespread acclaim of Korean beauty products. Because many celebrities endorse K-beauty products, the pop culture phenomenon attracts many admirers to the South Korean beauty industry. For instance, in 2021, according to the Ministry of Culture, Sports and Tourism (MCST) (South Korea) and the Korean Foundation for International Cultural Exchange (KFICE) survey, nearly 46.3% (among the top 2 countries) of K-beauty product purchasers/respondents belonged to the united Arab Emirates region, therefore, stating that K-beauty products awarenesses further drives this region's market.
Understand The Key Trends Shaping This Market
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Growing Sales Through Online Channels for Organic and Sustainable Cosmetics
- Due to a rapid increase in online shopping in the country during the last few years, consumer behavior changed, leading to home-care remedies replacing cosmetics products. This led to a surge in cosmetics product demand due to the online availability of the products and ease of purchase through online channels.
- For instance, in September 2022, Nykaa, an Indian online cosmetics retailer, took baby steps into the global scene by expanding its portfolio of cosmetics brands into nations like the United Arab Emirates.
- According to a joint study by Dubai Economy and global payments technology company Visa, the United Arab Emirates is making rapid strides as the fastest-growing e-commerce market in the Middle East and North Africa (MENA).
- Social media continues to become ever more influential, with many players using blogs, tutorials, and grassroots marketing to promote their brands. Consumers increasingly purchase products after viewing information on social media websites and blogs. The number of consumers regularly purchasing products via the internet will continue to grow over the coming years. Despite the widespread popularity of mall shopping in the United Arab Emirates, many brand owners want to promote their image and products online. For instance, according to the World Bank, in 2020, the Internet penetration rate in the Kingdom was 97.9%. The country has the highest number of active social media users in the region on various social media platforms, including Instagram, Facebook, Snapchat, and Twitter, thereby increasing the country's awareness of cosmetics products among consumers.
- However, the side effects of chemicals in cosmetic products leading to adverse health outcomes are raising consumer concerns. Harmful metals and chemicals get absorbed through the skin, accumulate in the body, and lead to ailments such as skin irritation, allergies, and dullness, which induces consumers to opt for natural products, fueling demand for organic, environmentally friendly, and sustainable cosmetic products. Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers. This has resulted in a shift in preference from synthetic skincare products to organic products among consumers. To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as 'organic,' 'vegan,' 'natural,' 'chemical-free' and 'cruelty-free.'
