GROWTH & OPPORTUNITIES FOR THE BEAUTY INDUSTRY IN SAUDI ARABIA
Saudi Arabia has experienced considerable change over the last decade. These changes are reflected across multiple sectors, but the beauty industry is one of the best examples.
As disposable incomes increase and the country integrates more with global markets, it has become a focal point for beauty brands and industry leaders from around the world. The influence of Saudi Arabia on the beauty industry extends beyond its borders, with the nation establishing itself as a significant market player.
THE CURRENT LANDSCAPE OF THE BEAUTY INDUSTRY IN SAUDI ARABIA
Current data and projections show that the beauty industry in Saudi Arabia is experiencing rapid growth. By 2026, the global market for beauty and personal care products is expected to reach an unprecedented $717 billion, with the Middle East and Africa (MEA) region contributing a significant portion of this amount.
As of 2022, the estimated value of the MEA beauty and personal care market stood at around $43.4 billion. In Saudi Arabia alone, the beauty market value was estimated at $5.09 billion in 2023. This thriving market presents significant opportunities for both established players and new entrants in the beauty sector.
SAUDI ARABIA AT THE FOREFRONT OF BEAUTY SPENDING
Saudi Arabia has established itself as a leader in global beauty spending. The Kingdom’s women have shown a growing appetite for beauty products and become top consumers worldwide.
The import figures provide a clear picture of this trend. In a statement, Saudi Customs spokesperson Issa Al-Issa said: “The weight of imported cosmetics amounted to approximately 44.6 million kg” – that’s equivalent to 1,152 filled Boeing A320 aeroplanes.
This growth is why Saudi Arabia’s beauty spending now makes up a large portion of the Middle East’s impressive 20% share of the global cosmetics market. The country is playing a pivotal role in the regional and global beauty landscape.
MARKET DRIVERS IN SAUDI ARABIA
Several economic, demographic, and technological factors are behind the rapid growth of the beauty industry in Saudi Arabia.
Increase in Disposable Income
Firstly, the rise in disposable income among Saudi consumers has directly impacted their purchasing behaviour. This has significantly impacted the luxury goods sector, including high-end beauty products. The ability to spend more on personal care also indicates a heightened value placed on self-care and appearance.
Demographic Change
With more than half of its population under the age of 30, Saudi Arabia has a young consumer base that is highly receptive to the latest beauty trends. This youthful demographic is also interested in the quality and efficacy of products, driving demand for premium beauty products.
Influence of Social Media
Platforms like Instagram and YouTube serve as a source of inspiration and information for Saudi consumers. In 2022, 79.30% of the population used social media, with Saudi Arabians spending an average of 3 hours and 1 minute daily on social media platforms. This digital engagement is instrumental in shaping buying habits.
Surge in Online Shopping
The growth of e-commerce has revolutionised the beauty industry in Saudi Arabia. An increase in product availability and the convenience of online shopping has encouraged more consumers to make purchases online. This trend was accelerated during the global pandemic, with many consumers preferring to shop from their homes.
OPPORTUNITIES FOR BEAUTY BRANDS
With the beauty industry in Saudi Arabia entering a new era of growth, there are enormous business opportunities. The landscape is ripe for the introduction of innovative products, the expansion of existing lines, and the entry of new brands into the market.
A key event that highlights the industry’s momentum is Cosmoprof Arabia. The prestigious Cosmoprof brand will host an event in Riyadh for the first time. Cosmoprof Arabia is the perfect platform for beauty professionals from around the globe to connect, showcase their latest products, and make an impact in the Middle Eastern market.
Cosmoprof Arabia highlights Saudi Arabia’s increasing influence on the global beauty industry. The Kingdom is setting trends and driving demand for new and innovative products. It’s clear that it will play a key role in shaping the future of beauty regionally and internationally.
(Source : Cosmoprof Arabia Riyadh)
