Market Trends of United Arab Emirates Hair Care Industry
Rising Demand for Organic and Herbal Hair Care Products
- The United Arab Emirates hair care products market witnessed an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds, such as paraben and aluminum, present in hair care products. Arabian consumers are increasingly focused on formulations when it comes to choosing their hair care products.
- The trend towards safe, natural, and organic products is not unique to the Arabian market, as consumers around the world are becoming more conscious of the ingredients in the products they use. International players are entering the market to cater to this demand by launching products with nature-inspired ingredients, such as plant-inspired and premium botanical ingredients, as these types of ingredients have been shown to be effective in improving the health and appearance of hair.
- For instance, in March 2021, the internationally acclaimed brand Soulflower entered the United Arab Emirates market with the launch of its popular miracle hair oil - Soulflower herbal onion hair oil. According to the company's claim, the hair oil is formulated using red onion and 20 essential oils and extracts to solve all hair problems, including hair fall, premature greying, dandruff, rough hair, and split ends.
- The demand for natural and organic products has been increasing due to consumers' growing concerns about their health and hygiene. As a result, manufacturers are improving their product offerings to meet these changing consumer requirements. This trend is also observed in the hair care industry, where natural and organic hair care products are becoming increasingly popular.
- Moreover, the increasing trend of organic concept stores and online platforms for natural and organic products is also expected to boost the growth of natural and organic hair care products. Consumers are becoming more conscious of the ingredients used in their personal care products and are willing to pay a premium for natural and organic options.
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Increased Penetration of E-Commerce Platform
- The United Arab Emirates is leading in e-commerce markets among Gulf Cooperation Council states, as per the International Trade Administration data. The growth of e-commerce in the UAE and the increasing preference for online shopping among consumers is not surprising, given the convenience and safety it provides, especially in the wake of the COVID-19 pandemic. It's good to see that the e-commerce platform in the country is expanding to offer a wide range of hair care products at competitive prices, catering to the needs of consumers. With the increasing availability of these products online, more consumers will likely choose to shop for hair care products online, leading to further growth in the e-commerce market in the UAE.
- The growth opportunity for the sales of hair care products through the online channel has forced online vendors to improve purchase processes in terms of security and reliability, which, in turn, has propelled the demand for these products. Moreover, vendors are adopting online retail strategies to reduce costs and increase their margins, which may benefit the market during the forecast period. Amazon, Lakme Salon, and L'Oréal, among others, are some of the popular online retailers for hair care and styling products in the country.
- On the other hand, several players in e-commerce platforms are entering the market owing to the rising demand through online retail channels in the country. For instance, in September 2022, Nykaa, an Indian e-commerce company specializing in cosmetics, entered the United Arab Emirates with its portfolio of beauty and personal care brands. In the Nykaa House of Brands, approximately ten in-house brands offer hair care products to Arabian consumers.
