Beauty platform BeautyMatter has revealed its new Middle East Beauty Market Report 2024. This report delves into the cultural, historical, and economic factors driving the Middle East's emergence as a significant player in the global beauty and wellness market. It highlights the region's unique opportunities for growth, supported by a young, digitally connected population and evolving consumer dynamics, offering a future-oriented guide for brands looking to expand their presence.

Why the Middle East matters now:

• The beauty and personal care market in the broader Middle East and North Africa (MENA) region is valued at over $46 billion and it is estimated that it will reach around $60 billion by 2025.
• Women in the Gulf (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)) spend an average of $63 on makeup and $52 on skincare per month, with men spending an average of $16 per month on skincare.
• The Middle East’s younger demographic points to future market growth, with an average consumer age of only 32. 
• Saudi Arabia boasts the most engaged users of makeup and fragrance. In 2021, the Saudi beauty sector was valued at $3.82 billion, but experts predict it could attain a valuation of $5 billion in the near future.
• Due to the region’s long history of wearing makeup and how fast consumer behaviors and expectations are changing, makeup trends in the Middle East tend to lean towards heavier makeup.
• Recently, the region has seen a rise of A-beauty (Arab beauty) brands and products designed to meet these needs and to resonate deeply with the new Middle Eastern consumer.

Trends driving the market:

Cultural trends - what is emerging is a unique blend of modern and traditional styles.

• Biohacking Bodies: Consumers are using technology to enhance health, reduce biological age, and optimise performance.
• Inclusive and Welcoming: The region is embracing inclusivity, with businesses reflecting diverse identities.
• Customised and Personal: There’s a growing demand for tailored products and bespoke wellness solutions.
• Deeply Rooted in Tradition: Ancient practices are being revived, blending tradition with modernity for well-being.
• Glocal Inspiration: Consumers are fusing local culture with global trends, celebrating both.
• Embracing Nature and the Natural: There's a shift towards natural, organic products and sustainable living.

Gen Z are redefining the region's consumer landscape

• Under-30-year-olds make up 55% of the MENA population. By comparison, this figure is 36% for the Organization for Economic Cooperation and Development (OECD) countries.
• 90% of purchases are influenced by online content. According to Lucidity Insights, in Saudi Arabia, 82% of surveyed participants across all generations were social media users while the smartphone penetration rate was 97%.
• Seventy-five percent of MENA consumers would buy from eco-conscious brands.

Female empowerment and entrepreneurship

• The Middle East is witnessing a surge in female leadership, driven by government initiatives and increasing access to education and professional opportunities.
• A majority of STEM graduates in the Middle East are women. Increased female participation in the workforce could boost its economy by $2.7 trillion by 2025.

Beauty trends - beauty is defined differently across the region. Women in the UAE consider themselves trendsetters and are exposed to a large variety of brands.

• Strobe Skin: A luminous makeup trend with a soft, ethereal glow.
• Clean & Considered: A preference for clean beauty with simple, effective routines.
• Peach Fuzz: Peach tones to brighten and combat dark circles.
• Multiscentsorial: Arab-inspired fragrances evoking cultural nostalgia.
• A-Beauty: Traditional beauty meetings modern technology.
• Scalp Care: Focus on scalp health to combat climate effects.
• Healthy & Hydrated: Hydration is essential in a hot, dry climate.
• A Sculpted Glow: Techniques like face yoga create a radiant, sculpted look.
• Sharp Features: Enhancing natural, strong Middle Eastern features.

Sustainability takes centre stage - The sustainability journey for the Middle East is more than a global trend. It represents a strategic reorientation of its economic compass.

Influencers and influencing factors

• In the Middle East, consumers seek brands that value and use local resources, preserve indigenous traditions, and support local economies with 79% of Saudi Arabian consumers agreeing that heritage is an important part of their identity.

Understanding the rules of engagement:

• In the Middle East, retail distribution is highly fragmented, with online penetration in the beauty category growing rapidly. Six distribution channels range from offline retail, e-commerce, and DTC to spas, salons, and clinics.
• While the United States and China will remain global powerhouses, markets like the Middle East and India are emerging as new hotspots with underserved consumers open to local and foreign brands.

The online retail evolution:

• In the MENA region, the online percentage of total sales rose from 2.3% in 2018, to 6.1% in 2023.
• The future of beauty retail in the Middle East is omnichannel.

Travel retail:

• Travel retail has significantly boosted growth in beauty. International airports in the region have introduced brands to nationalities like Indians and Chinese, who previously had limited domestic access to these labels.

The Spa and clinic channel:

• In 2022, the MENA region had 8,762 spas worth $4.4 billion, up 49.2% from 2020. The Middle East and Africa spa market is expected to reach $25.77 billion in 2023, with a 13.43% annual growth rate.

The wellness economy and tourism

• Research by the Global Wellness Institute predicts the Middle East-North African overall wellness economy (which includes all 11 wellness markets—from physical activity to mental wellness to healthy food/nutrition/weight loss to the spa industry) is the world’s second-fastest regional wellness growth leader.
• The Middle East wellness market was worth $110.5 billion in the pandemic year of 2020; it grew 14.7% annually from 2020 to 2022 to reach $145.4 billion. In 2022, the MENA region had 8,762 spas worth $4.4 billion, up 49.2% from 2020. The Middle East and Africa spa market is expected to reach $25.77 billion in 2023, with a 13.43% annual growth rate.

Top influencers in the region:

• Karen Wazen, @karenwazen Instagram 8.2M / TikTok 4.4M
• Jwana Karim, @jwanagram Instagram 4.2M
• Yara Bou Monsef, @yaraboumonsef Instagram 1.5M / TikTok 1.9M
• Deema Al Asadi, @deemaalasadi Instagram 1.1M
• Rozzah, @rozzah Instagram 5.4M / YouTube / TikTok 2.4M
• Darin Al Bayed, @darin00013 Instagram 4.1M
• Yalda Golsharifi, @ygolsharifi Instagram 1.1M
• Deema Al Asadi, @deemaalasadi Instagram 1.1M
• Mariam Rod, @mariam Instagram 1.1M
• Nada Baeshen, @nadabaeshen Instagram 710K
• Farhana Bodi, @farhanabodi Instagram 2.8M
• LJ Loujain Adada, @loujainaj Instagram 1M
• Zeina Khoury, @thezeinakhoury Instagram 978K
• Danya FM Almulla, @thedivadee Instagram 946K
• Nipun Kaur Sohal, @nipunkapur Instagram 902K / YouTube 477K / TikTok 212K
• Alizey Mirza, @Al1zey Instagram 253K
• Rosemin, @roseminsworld Instagram 201K
• Yara Ayoob, @yarziezz Instagram 255K / TikTok 237K
• Jumana Abubaker, @jumanajumana Instagram 263K
• Roma Abdessealam, @therealsahd Instagram 172K / TikTok 660K
• Khadija Hallouty, @khkiddo Instagram 229K

Local brands to watch:

• Peacefull
• Glossy Makeup
• Izil Beauty
• K7L Cosmetics
• Glossic
• Green Bar
• Bassam Fattouh Cosmetics
• Arcadia
• Juana
• Yome Natural Care
• Moonglaze
• Skin Story
• MUSC
• Yaskin Natural
• Asteri
• Barkha Beauty
• HAN Makeup
• Mariam Em
• Shiffa Beauty

Regional brands competing with internationals:

• Huda Beauty
• By Mina Al Sheikhly
• Kayali
• Camel Soap Factory
• CTZN Cosmetics
• Amouage
• Arooba Beauty
• Hindash Cosmetics

Leading beauty groups and distributors:

• Alshaya Group
• Al Tayer Group
• Gulf Marketing Group
• Chalhoub Group

Top online beauty retailers:

• Beauty Tribe
• Reneen
• Peach
• Project Byouty
• Apotheca Beauty
• TheKür
• Beauth Me
• Beauty Solutions
• Nazih
• Nice One
• Glamazle
• Powder Beauty Co.
• Noon
• The Skincare Edit
• Secret Skin
• Nysaa

Top offline retailers:

• Sephora
• Faces
• Areej
• Gazzaz
• Saks Fifth Avenue
• BHV Marais
• Rubaiyat
• Harvey Nichols
• Blue Salon
• Debenhams
• Bloomingdale’s
• Galeries Lafayette
• Paris Gallery
• VaVaVoom
• Sensi
• Secret Notes
• Al Hawaj
• Nazih
• Prestige Locations
• Independent L

For the full report, visit beautymatter.com.