Colour Cosmetics in the United Arab Emirates

With UAE residents being among one of the highest spenders on beauty products, there is some good news for young emerging brands.

There is a rising interest in young, local brands as opposed to traditional, heritage ones. While heritage brands such as Chanel and Dior continue to be popular, younger brands such as BeneFit, Urban Decay’s Naked Palette, Kiko Milano, Anastasia Beverly Hills, Essence, Nars and Sephora are growing fast as young and aspirational consumers relate to them easily.

Estée Lauder Middle East maintained its leading position in colour cosmetics in 2016, with a 22% value share. This was mainly due to its broad product portfolio within the premium segment. The company benefits from broad distribution across the country and a wide network of mono-brand boutiques for famous brands, such as Mac and Bobbi Brown. Many beauticians who give make-up workshops are Mac-certified as well, which encourages the growth of the brand.

Colour cosmetics is expected to register a value CAGR of 2% at constant 2016 prices over the forecast period. Growth will be generated by women who want to wear make-up on a daily basis, as it is deemed essential to look good in society. However, the growth rate will be lower than in the review period as the category is moving towards maturity and stability from the economic slowdown. Spending among tourists is expected to reduce as they prioritise experiences; this will also contribute to sales growth in colour cosmetics being slower. The category will also be negatively affected by weaker purchasing power amongst women, as they are becoming cautious about spending on products they are knowledgeable about through social media.