When make-up and politics don't mix: ME beauty sector set to grow despite turmoil
According to market research from Euromonitor International, the regional outlook for the beauty industry is extremely positive.
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The rise of beauty and cosmetics brands in the Middle East emphasises the traditional importance to this sector across the region.
The natural cosmetics and beauty sector continues to witness a healthy growth with the glow of the sector growing in spite of political upheavals in the region.
According to market research from Euromonitor International, the regional outlook for the beauty industry is extremely positive. The market for color cosmetics in the UAE is expected to reach a AED519.5mn annually in 2014, with demand for facial and eye make-up being especially strong.
Fragrances, too, are expected to be in high demand in the UAE, with the market for premium perfumes expected to be worth an astronomical AED663.5mn annually by 2014. Euromonitor International also estimated that the GCC residents will spend an approximate AED2.46bn (US$670mn ) on hair care products by 2014.
This growth trend reflects the evolution of the beauty industry globally, with some projections claiming 8.5 per cent growth by 2014. Several trends support this expansion and continued profitability in the future. Globally, rising per capita incomes and greater access to international markets are increasing spending on discretionary items such as perfumes and cosmetics.
In the Middle East, the UAE natural cosmetics market is the largest in the region and comprises over half of total revenues. In other countries, demand is mainly concentrated in Riyadh, Kuwait City and Manama.
“The Middle East region, with its comparatively higher income levels and propensity for spending on beauty and hair care products, is a key area of interest for global brands, and we see an emerging trend for world-class brands to reinforce their presence in the region,” said Mohamed Madi, president of Madi International.
He added: “We at Madi International consider ourselves as the go-to destination for the beauty professionals – for that matter, anything that is associated with the beauty industry. We have on offer a wide array of products that covers all the gamut of beauty industry, starting from hair products, shampoos, eyelash, nail polish etc. Think beauty, think of Madi International.”
For a company like Madi International, it offers us a wide range of services and products to help us put our best face forward, and thanks to them, the beauty industry now also encompasses world-class hair styling and hair removal, nail and tanning products, other cosmetics products, perfumes, and much more.
This is essential because the market is so diverse and there is a need to provide consumers with choices galore to keep them looking younger and healthier. “Today, cosmetics exist for every style and taste, as well as every skin tone, texture and even allergy. From exfoliating soaps and shampoos to anti-wrinkle creams, the beauty industry provides us with a wide variety. As a company, we need to stand out in the crowd,” said Madi.
There is considerable differentiation between offerings based on price, location and target markets. Some businesses target the inexpensive, fast hair cut market while others focus on providing a luxury spa experience. The most advanced markets, in particular the United Arab Emirates, also benefit from the growing interest in specialised products and premium brands. With a multitude of brands already in the market, customers are very choosy about what they use.
Niche brands are doing well, with the market growing to accommodate more of them and customers taking an increased liking to what’s different. “We aim to target this niche,” said Madi.
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