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Flourishing Saudi beauty market

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Saudi Arabia: GCC’s biggest market; 30 million inhabitants with a 1.9 percent growth rate; a young population, approximately 60% inhabitants under 17 years; 42% of women, the highest percentage in the GCC, which are increasingly entering the job market and graduating from universities; a growing number of malls, beauty salons, pharmacies, and airport duty free boutiques; a very high purchasing power: all the ingredients seem present to create an environment conducive to great opportunities for European companies in the cosmetic sector.

A report released by Euromonitor shows that Saudi women spend on average $3,800 per year on cosmetics[1]. Indeed, the country’s $16 billion market is planned to grow by 11% and remains the largest in the Middle East. According to the Euromonitor report: “Growth is expected to continue to be driven by rising disposable incomes in Saudi Arabia due to continuance of strong economic growth and high levels of government spending. As well, a growing young population preferring a more Western and successful lifestyle, as advertised by leading domestic and international players, are all expected to be factors in fueling future growth of beauty and personal care into 2019.”.

On the other hand, consumer behaviors are evolving, young Saudis are developing their brand awareness threw internet and becoming more demanding. Western personal care products sales benefit from this new habits. In addition, the lower value of the Euro led to higher competitiveness of European products facing the East Asian concurrence and with over 50,000 registered providers, many international companies continue investing the country.

Also, the number of spas has been rising within the Kingdom, and with it the demand of quality cosmetics. Natural products have become fashionable with a noticeable expansion of the promising eco-friendly and organic market. Halal cosmetic product sales have also progressed, they are expected to increase by 15% by 2020 according to a recent report[2].

 

[1] Beauty and Personal Care in Saudi Arabia – Euromonitor.

[2] Saudi Arabia Halal Cosmetics Market Forecast and Opportunities, 2020 – TechSci Research.

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