Factors such as the escalating disposable income of people, surging public awareness about physical appearance, booming population of working women, burgeoning demand for organic color cosmetics, and mounting investments being made by players in marketing and advertising initiatives are expected to drive the Saudi Arabian color cosmetics market at a CAGR of 7.1% during 2020–2030. The market was valued at $603.6 million in 2020 and it is projected to generate $1,197.2 million revenue by 2030.
The booming population of working females is one of the key factors propelling the demand for color cosmetics in Saudi Arabia. According to the General Authority for Statistics, Labor Force Survey data, the labor force participation rate of the total female working population increased from 32.1% in the fourth quarter of 2020 to 33.6% in the first quarter of 2021. As more women are stepping out of their homes, they are becoming more aware of personal care products, owing to which they are generating extensive demand for improved color cosmetic products.
Currently, the Saudi Arabian color cosmetics market is fragmented in nature due to the presence of numerous players. At present, market players are engaging in mergers and acquisitions to consolidate their position. For example, in July 2021, Sephora SA acquired Feelunique.com from Palamon Capital Partners, a U.K.-based online retail company for premium beauty products. This online retailer has over 1.3 million active customers across 120 countries, including Saudi Arabia, and has over 35,000 products from more than 800 brands.
According to P&S Intelligence, the western region is expected to account for the largest share in the Saudi Arabian color cosmetics market in the coming years. The market in the region is also projected to demonstrate the fastest growth during the forecast period. This can be ascribed to the accelerating urbanization rate and escalating disposable income of people in this part of the country. The burgeoning demand for color cosmetics from the region is being met by L'Oréal S.A., Coty Inc., The Estée Lauder Companies Inc., Shiseido Co. Ltd., Unilever Group, Oriflame Holding AG, The Procter & Gamble Company, and others.
Therefore, the burgeoning population of working women and the increasing availability of improved products will augment the demand for color cosmetics in Saudi Arabia.
