In 2021, the U.A.E. fragrance market stood at $913.7 million, and it is forecast to touch $1,622.5 million in 2030. The market is expected to advance at a CAGR of 6.6% from 2021 to 2030, owing to the skyrocketing investments in marketing and advertising initiatives, surging demand for custom-made, natural, and eco-friendly cosmetic products, as well as the increasing disposable income of the consumers, which consequently augment the purchasing power of consumers.
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U.A.E. Fragrance Market Analysis and Growth Forecast, 2030 |
Luxury products dominated the U.A.E. fragrance market in 2021, with a revenue share of around 70%. This is because of the economically strong market of the U.A.E., wherein prominent multinational brands have launched their premium products here much earlier than in other regional countries. Approximately 60% of the population is in the 14–40 age bracket, and these people tend to have a higher purchasing power due to the higher employment rate than other age groups.
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The gradually skyrocketing consumer demand for personal care products will drive the U.A.E. fragrance market in the coming years. The essential daily products for the general public include fragrances as well. Moreover, the count of social media users has gone up significantly due to the rising internet penetration. Most of the key market players are marketing and advertising their products on social media, such as Johnson & Johnson, Unilever Group, and Victoria’s Secret & Co., after taking account of the consumer preferences and engagement.
An important constituent of grooming rituals in this country is perfume: a sign of cleanliness. There has been a considerable rise in the number of international perfume corporations setting up their production plants here. They are progressively offering their products to the local inhabitants by blending conventional Oriental components with contemporary fragrances from the West. Perfumes are a representation of the users’ style, persona, and uniqueness. Hence, with a paradigm shift toward Western fragrances, many European and North American brands are setting-up shops in this country.
The U.A.E. fragrance market is also growing on account of the increasing demand for organic or natural-ingredient-based products. Geranium bourbon, sandalwood, and patchouli are some commonly used organic ingredients in the synthesis of perfumes. However, synthetic components hold a 60–65% share in the market. On the contrary, organic products have 30–35% of the total market. The increasing consumer awareness, coupled with a rising focus on hygiene, changing lifestyles, and personal health, will drive the demand for zero-chemical products.
The growth in the U.A.E. fragrance market is complemented by a rise in the use of cosmetics among men in their daily regimen. The demand for such products is rising as men are becoming more concerned about themselves. Furthermore, after working out, they use these products to weaken their body odor. As urbanization and fascination with the Western culture are on the surge, this category will grow with men’s rising preferences for different scented perfumes.
Hence, owing to the rising disposable income of people and the surging demand for natural cosmetic products in the country, the market will expand fast.
