The Future of Beauty in the MENA Region: A $60 Billion Market by 2025
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Salma Hossein
- . August 20, 2024
- . Update: August 20, 2024 11:34 pm
With forecasts showing the Middle East and North Africa (MENA) region’s beauty and personal care business would reach a valuation of $60 billion by 2025, it is on course for major increase. From its $46 billion present market worth, this represents a significant rise. Released by Beautyworld in association with BeautyMatter, this growth projection is described in a new research called “Beautyworld x BeautyMatter 2024 Middle East Market Report: Past, Present, Future.”
Cultural and Historical Evolution
Tracking its roots from ancient customs to contemporary trends, the paper offers a thorough summary of the development of the beauty sector in the MENA area. It provides understanding of how the beauty standards and commercial dynamics of the area have evolved over millennia, thereby preparing the ground for next advancements in this fast expanding industry.
Young Demographic: Driving Growth
The young, technologically savvy population of the MENA area is a major driver of the expansion of the beauty business there. Driven by under-30-year-olds, who account for 55 percent of the population in the region compared to 36 percent in Organization for Economic Cooperation and Development (OECD) nations, this group is crucial in influencing market trends.
The survey underlines that beauty companies trying to appeal to this powerful youthful customer base have to have a technologically smart and values-driven attitude. Particularly Generation Z is observed for their taste in companies that provide interesting narrative, a clear goal, and original selling propositions.
Industry Viewpoint of Leaders
Beautyworld’s organizers, Flyn Roberts, Chief Commercial Officer of Messe Frankfurt Middle East, voiced hope on the results of the report. “We hope the study brings important industry benchmark data and research into one location, therefore uniting vital market data. Our aim is to give the worldwide business a roadmap to better grasp and seize the expanding possibilities for both local and international companies in this dynamic and always changing area, Roberts said.
Double-Digit Expansion Across Categories
With a cumulative Compound Annual Growth Rate (CAGR) of 12 percent, the highest globally, McKinsey and Euromonitor estimate strong double-digit increase across all main beauty categories in the MENA area through 2027. Especially, the UAE and Saudi Arabia’s impact on the worldwide fragrance market—which is expected to be valued $7.21 billion by 2032—is noteworthy.
Other important results show that men in the GCC spend an average of $16 on skincare while women in Gulf Cooperation Council (GCC) nations spend an average of $63 on makeup and $52 on skincare monthly. Further assessed at $25.77 billion in 2023 was the MENA spa service market.
Development of Regional Brands and A-Beauty
The study also emphasizes the growing need for A-beauty (Arab beauty) brands, which satisfy the particular needs and tastes of Middle Eastern beauty consumers. “Our approach with this market report was to do a deep dive into an incredibly dynamic region, arming readers with data and intelligence framed inside a historic and cultural context to inform their Middle East strategies,” said Kelly Kovack, Founder and CEO of BeautyMatter.
The paper lists regional firms like the Omani luxury fragrance company Amouage and the female-run Saudi-based brand Asteri that are making waves internationally. These companies not only are becoming well-known but are aggressively seeking worldwide distribution.
Middle Eastern Beauty: Historical Significance
Noting the discovery of what is thought to be the first example of lipstick, about 4,000 years ago, the article offers a unique historical viewpoint on beauty in the Middle East. Founder and Medical Director of Doctor Bibi Clinic in London, Dr. Bibi Ghalaie says the classic Middle Eastern beauty aesthetic consists in “almond-shaped eyes, full lips, bold brows, sharp features, and a strong hairline.” She also notes that men and women all around now have a mainstream and aspirational ideal based on this look.
Social Media: Its Effects
The study emphasizes how greatly social media and e-commerce have transformed the Middle Eastern beauty industry. Particularly in Saudi Arabia, which boasts one of the highest rates of online content consumption worldwide at 82 percent, these sectors have seen amazing expansion over the past ten years. With 71 percent of Arab women actively engaging in social networking, the survey states that Arab women see the digital world as an extension of their actual community.
Reflecting the Middle East’s fast speed of digital development, the e-commerce industry in the area is expected to reach $50 billion by 2025.
Focus on Local Resources and Heritage
The Middle Eastern beauty market depends much on local ingredients and legacy, the survey notes. “In the Middle East, consumers seek brands that value and use local resources, preserve indigenous traditions, and support local economy,” said Jane Henderson, Chair of Beauty and Wellness at the Mintel Group. Given 79 percent of Saudi Arabian customers feel that ancestry is a significant component of their identity, it is evident that these components really appeal to the beauty lovers in the country.
Driven by a young and technologically-savvy population, a great respect of legacy, and the emergence of local companies with worldwide aspirations, the MENA beauty and personal care sector is set for major expansion in the next years. Local and international cosmetic companies have a special chance to access this vibrant and fast growing area as the market develops.
