Beauty and Personal Care in the United Arab Emirates

Strong growth is led by the young and affluent population

Beauty and personal care in the United Arab Emirates continued to see a positive performance in 2015, similar to the growth it witnessed in the previous year. The young population in the country continued to drive growth, due to strong consumer confidence and high awareness of fashion and beauty in the region, boosted by media exposure. Amidst the mild slowdown in the economy and the rising cost of living demand continued to be strong, with retailers offering deals and offers to keep customers interested and feel valued. The expansion of the retail landscape within newer neighbourhoods also made accessibility to beauty products easier than ever. These factors boosted sales in the beauty and personal care market in the United Arab Emirates in 2015.

Products with natural ingredients gain consumer preference

Consumers in the region have depended on natural ingredients since the early years of trade in the region, and perceive them to be gentle and effective. As the interest in organic products is increasing globally, the preference for products containing natural ingredients is rising. For this reason, brands highlight their content of natural ingredients and the efficacy of their products. The growing use of ingredients such as argan oil, shea butter, olive oil, almond oil, aloe vera and musk is seen in categories such as skin care, hair care and bath and shower.

Multinational companies dominate, whilst local companies increase their presence

International companies continued to dominate beauty and personal care in 2015. However, local players Arabian Oud and Abdul Samad Al Qurashi are also within the top 10 companies, mainly due to the strong presence of fragrances in United Arab Emirates. These companies have a long-standing presence in the country, offering premium traditional Arab fragrances which are popular amongst locals and expatriate Arabs. Global companies Unilever Gulf and Procter & Gamble Gulf led beauty and personal care in 2015, as they benefit from their long-standing presence within this market in the region, and from global awareness of major brands such as Lux, Dove, Gillette, Hugo Boss and Pantene. Over 80% of the overall population in the country consists of expatriates from all over the world, therefore internationally known brands are often preferred, as consumers know and trust them due to their presence in their respective home countries. However, based on the large Asian expatriate community in the United Arab Emirates, India-based companies such as Marico, Dabur International and The Himalaya Drug Co are also increasing their presence in the market. These brands already enjoy the trust of this large consumer group, and their product portfolios and the ingredients used are usually in line with the preferences of expatriates from India, Pakistan and Bangladesh.

Value-added products enter the market

The leading multinationals focused on the introduction of value-added products in 2014 and 2015, offering superior results to specific problems or clearly defined benefits. Colgate-Palmolive, for example, introduced a whitening mouthwash and a product for sensitive teeth, whilst Beiersdorf launched its latest innovation, Nivea in-shower body lotion. Consumers in the United Arab Emirates are becoming increasingly knowledgeable and sophisticated when choosing beauty and personal care products, and rising disposable incomes on the back of good economic growth enable them to purchase these higher-priced items.

Strong growth is expected over the forecast period

Beauty and personal care in the United Arab Emirates is expected to register further healthy growth in the forecast period. Whilst the mass segment will benefit from the influx of expatriates and increasing interest in value-added products, the premium segment will be supported by increasing numbers of inbound tourists, eager to find gifts for friends and family. This positive outlook is expected to be further boosted towards the end of the review period by the upcoming Expo 2020 in Dubai. This event is set not only to support the domestic economy, and specifically the hospitality sector, but also to increase awareness and spread a positive image of the country all over the world.