According to a Euromonitor International analyst, the beauty and personal care market in the Gulf Cooperation Council (GCC) region will not be back on track until 2024.
The industry has suffered a slump in demand since the onset of the corona virus pandemic.
This year, the UAE market alone is predicted to face a decline of eight percent, while Saudi Arabia is set to fall by five percent. The slump will continue to be driven by a fall in local demand, coupled with a decline in expat population and less numbers of international visitors, as well as low oil prices.
“The beauty and personal care in the Middle East isn’t expected to get back to pre-crisis levels until 2022, and GCC countries may not be back on track until 2024,” said Amna Abbas, senior analyst at the market research firm.
The UAE and Saudi Arabia are regarded to be among the largest markets for cosmetics and skincare products in the world.
Saudi women usually rack up $909 in annual bills, the highest in the world, while Emirati women spend $694 a year, according to a study conducted by discount site Picodi.com.
The retail value of the beauty and personal care market in the Middle East and Africa (MEA) region also showed strong growth potential prior to the pandemic, rising from $32.4 billion a year earlier to $34.9 billion in 2019, according to Euromonitor.
When the corona virus lock downs were imposed and consumers prioritized preventative health products, the market experienced a decline in March.
During this period, brands in the region shifted their strategy to cope with the decline in demand, with some market players like Unilever Arabia optimizing the production of items in resilient categories such as antibacterial hand soaps, wipes and sanitizers.
In recent months, the brand also campaigned heavily on its Lifebuoy soap brand, capitalizing on the message of maintaining good hygiene and hand-washing during the outbreak.
Some other brands have shifted their attention online.
The role of virtual reality and artificial intelligence are soon expected to impact the customer’s shopping experience in this industry too.
“On a brighter note, malls in the UAE have already opened but they are still operating with strict precautionary measures in place, as ordered by the government after a lock down that lasted between March and June. Consumers are cautious, yet keen to return to normal life which has led them to step out and slowly resume shopping. Similar patterns are seen across the GCC, with occasional lock downs put in place, if cases are seen rising,” said Abbas.
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