Market Overview

In 2023, the U.A.E color cosmetics industry generated USD 512.5 million in revenue, and it is estimated to experience a CAGR of 8.1% over the projection period, attaining USD 880.3 million by the end of the decade.

People in UAE are witnessing a rise in their disposable income level, because of the high living standards, plus growing consumption of good-looking products and this is, in turn, leading to a skyrocketing demand for organically-based color cosmetic products.

In addition to that, the investments in advertising and marketing activities as well as the increasing working women population in UAE are proving to be additional stimuli for the success of the Multinational companies and industry players have been involved in the innovation of color cosmetics at their production facilities, which comprise different make-up items such as lipsticks, eyeshadows, blushes, and hair pigmentation products. The players become in constant innovative processes to keep pace with the more demanding beauty market.

The products are to be improved and the appearance of people becomes as a result in this way. Plus, there is the fact that the number of women who have the status of workers has increased considerably in recent years which is very much involved in this thing by the way.

To add up, people have recognized the diseases that skin develops in climatic conditions while also chemicals that are used in the production or manufacturing processes of such color cosmetics.

Key Insights

·         During the projection period, the luxury products category will witness rapid growth at a CAGR of 8.3%.

·         This development is propelled by growing personal revenue levels, directing to a wish for an extravagant lifestyle among the wealthy.

·         Rich people, who can afford luxurious products, are the main customers of luxury goods.

·         Mass products, on the other hand, constitute a larger category with an 80% market share in 2023.

·         The mass products category aids from economies of scale as they are produced in huge sizes, making cosmetics more available to an extensive customer base.

·         Such items are inexpensive because of lesser production prices stemming from low-cost raw materials.

·         In 2023, the facial make-up category is dominating the market with a share of around 35%.

·         The category is also projected to grow at the fastest pace, propelled by augmented demand for natural facial color cosmetics.

·         Components like facial compacts, bronzers, blushes, foundations, and highlighters keep this generally high-profit segment growing.

·         The huge climb in sales is due to the increasing number of working women and the elevated sense of appearance among millennial women.

·         This has caused a very big increase in make-up facial merchandise selling shops around the nation.

·         One-time packaging is the largest category in the cosmetics industry, holding a market share of approximately 70% in 2023.

·         It is also the fastest-growing category, driven by the widespread adoption of single-use packaging over the last decade.

·         Dubai holds the position of the largest city in the cosmetics market, boasting a market share of about 45% in 2023.

·         It is also the fastest-growing category within the market.

·         This expansion is due to factors including rising per capita income of customers, women's participation in the workforce, and high sales of beauty products on online platforms.

·         Nowadays, people in that country use tourist blogs and social media posts for their search process during the buying process.

·         This trend is likely also to continue, and it will further increase the number of people who use online stores to buy cosmetics in Dubai increase.

Source: P&S Intelligence