Report Overview

Saudi Arabia cosmetics market continues to stabilize, with the overall market expected to grow at a CAGR of 6.7% during the forecast period. Saudi Arabia has shown significant growth as a potential cosmetic market due to the increasing population and their ability to spend on appearance and aesthetics. Therefore, cosmetic brands are increasingly launching their products to meet customers’ needs, driving market growth. The Saudi Arabia cosmetics market is also expected to benefit from the increasing penetration of luxury brands during the forecast period.

Saudi Arabia Cosmetics Market- Overview

Cosmetics are personal and skincare products that enhance one’s appearance and cleanse or protect the body or skin. The products are widely used to enhance natural features and conceal flaws on the skin, such as blemishes or inflammation. With the changing climatic conditions, consumer preferences have shifted from beautification to skincare. Therefore, consumers nowadays demand cosmetic products that offer both. Furthermore, changing societal norms are also opening new opportunities for the growth of the Saudi Arabia cosmetics market.

Saudi Arabia Cosmetics Market Forecast and Trends

Growth Drivers

Increasing Launches of Vegan and Halal Cosmetic Products

Saudi Arabia has stringent laws regarding halal cosmetic products. Therefore, consumers are increasingly getting more conscious of the availability of vegan and halal cosmetic products. Considering this factor, cosmetic brands are actively developing vegan and halal cosmetic and skincare products to establish their brands.Saudi Arabia cosmetic manufacturers are producing products free from ingredients hindered by Islamic law, such as pork products, animal blood, etc., which is likely to drive growth in the Saudi Arabia cosmetics market during the forecast period.

Growing Penetration of Social Media and the Internet

Social media is the most popular marketing tool for cosmetic brands, as Millennial consumers prefer to discover beauty brands through social media. As consumers become more aware of the ever-changing global beauty trends via social media, they tend to stay up to date, which in turn contributes to the growth of the Saudi Arabia cosmetics market. For instance, Korean beauty brands have registered a significant boom in the Saudi Arabia market due to the Hallyu wave and the growing trend of K-pop and k-drama in the country.

Restraints

Side Effects of Excessive Use of Makeup

A majority of Saudi Arabia's population, especially women, apply makeup daily in all forms, from blushes to foundations to mascara. The habit of applying makeup every day can be harmful to skin and health, especially if not cleaned properly. This severe side effect of makeup is one of the leading restricting factors for the Saudi Arabia Cosmetics market. Furthermore, unhealthful makeup habits can cause inflammation, acne, allergies, dryness, clogged pores, and even early aging. Additionally, some makeup products can cause allergic reactions and cause skin and eye irritation.

Impact of COVID-19 on Saudi Arabia Cosmetics Market

Saudi Arabia's cosmetics market was negatively impacted by the sudden outbreak of COVID-19 and the global pandemic. As the Saudi government imposed a lockdown to deal with the increasing COVID-19 cases, retail networks of cosmetic brands were halted completely, inflicting a loss on the market. Additionally, the pandemic-induced lockdown sparked the trend of working from home. As a result, since working women were no longer required to wear makeup for professional purposes, the demand for makeup products decreased in Saudi Arabia. Consequently, the Saudi Arabia cosmetics market witnessed a sharp decline in demand.

Saudi Arabia Cosmetics Market - By Product Type

The Saudi Arabia cosmetics market is segmented into skin care, hair care, makeup, fragrances, and hygiene products based on product type. The makeup product segment accounts for the largest market share because of its wide use on a daily basis. The increasing use of makeup for the corrective aspects, such as using blush for getting a healthier look, or foundation for making a face more symmetrical, contributes to the growth of this segment in the Saudi Arabia cosmetics market. On the other hand, the skincare segment is also likely to witness a substantial share in the market during the forecast period.

Saudi Arabia Cosmetics Market - By Demography

Based on demography, the Saudi Arabia cosmetics market is segmented into women cosmetic products and men cosmetic products. The women’s cosmetics products segment captures the highest market share because of a wide range of products that caters to women’s skin and beauty needs. Furthermore, high consciousness towards appearance and look among women because of strict beauty standards in cultures also contributes to the Saudi Arabia cosmetics market. On the other hand, the men’s cosmetic products segment is also gaining significance because of changing societal norms.

Saudi Arabia Cosmetics Market - By Distribution Channel

Based on distribution channels, the Saudi Arabia cosmetics market is segmented into online channels and offline channels. The offline channel accounted for the largest market share with the availability of a wide range of products and specialty stores and brand showrooms that offer genuine products. Because offline channels allow their customers to check products on their skin and buy based on their skin needs, they are more prevalent in Saudi Arabia. However, online channels are also witnessing significant growth after the COVID-19 outbreak, as people nowadays prefer purchasing cosmetics online owing to social distancing norms.

Saudi Arabia Cosmetics Market - By End-User

Based on end-users, the Saudi Arabia cosmetics market is segmented into premium customers, mass-market, and professional. The mass-market segment accounts for the largest market share because of the high living standards of general customers in Saudi Arabia. Also, the young people in this region are willing to spend large amounts of money on cosmetics to improve their appearance. The premium customer segment also covers a substantial share in the market. It is projected to witness the highest CAGR during the forecast period because of the high demand for luxury brands.

Competitive Landscape

The leading market players in the Saudi Arabia cosmetics market are Arabian Oud, Al Quraishi, SHISEIDO, UNILEVER, Chanel, Dior, Guerlain, MAC, Proctor & Gamble, Lancôme, and other prominent players.

The Saudi Arabia cosmetics market is highly fragmented, with the presence of several cosmetic brands. The market is nevertheless dominated by specific brands such as MAC. The fact of luxury brands such as Chanel and Dior make the market extremely competitive. The companies offer a wide range of products and frequently launch products that cater to various skin types’ needs and target demographics. They invest heavily in advertisement and marketing campaigns to create brand awareness and attract potential customers. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations is also very prominent.

Recent Developments

• In May 2021, Rare Beauty, the cosmetic brand of pop singer and actress Selena Gomez, announced its expansion in the Middle East, including Saudi Arabia and other regions, such as Europe, New Zealand, and Australia.

Scope of the Report

By Product Type

• Skin Care
• Hair Care
• Makeup
• Fragrances
• Hygiene Products

By Demography

• Women Cosmetic Products
• Men Cosmetic Products

By Distribution Channel

• Online Channels
• Offline Channels

By End-User

• Premium Customers
• Mass-Market
• Professionals

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Launches of Vegan and Halal Cosmetic Products
         2. Growing Penetration of Social Media and Internet
      2. Market Restraints
         1. Side Effects of Excessive Use of Makeup
      3. Market Challenges
         1. Negative Impact of the COVID-19
      4. Market Opportunity
         1. Increasing Demand for Skincare Products
         2. Flourishing Men’s Grooming Products
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Saudi Arabia Cosmetics Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Product Type
         1. Skin Care
         2. Hair Care
         3. Makeup
         4. Fragrances
         5. Hygiene Products
      2. By Demography
         1. Women Cosmetic Products
         2. Men Cosmetic Products
      3. By Distribution Channel
         1. Online Channels
         2. Offline Channels
      4. By End User
         1. Premium Customers
         2. Mass-Market
         3. Professionals
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Saudi Arabia Cosmetics Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Arabian Oud
   2. Al Quraishi
   3. SHISEIDO
   4. UNILEVER
   5. Chanel
   6. Dior
   7. Guerlain
   8. MAC
   9. Proctor & Gamble
   10. Lancôme
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Saudi Arabia Cosmetics Market Segmentation

Figure 2: Saudi Arabia Cosmetics Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Saudi Arabia Cosmetics Market Size, By Value (USD Million), 2017-2027

Figure 5: Saudi Arabia Cosmetics Market Share (%), By Product Type, By Value, 2017-2027

Figure 6: Saudi Arabia Cosmetics Market Share (%), By Demography, By Value, 2017-2027

Figure 7: Saudi Arabia Cosmetics Market Share (%), By Distribution Channel, By Value, 2017-2027

Figure 8: Saudi Arabia Cosmetics Market Share (%), By End User, By Value, 2017-2027

List of Tables

Table 1: Saudi Arabia Cosmetics Market Size, By Product Type, By Value, 2017-2027

Table 2: Saudi Arabia Cosmetics Market Size, By Demography, By Value (USD Million), 2017-2027

Table 3: Saudi Arabia Cosmetics Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 4: Saudi Arabia Cosmetics Market Size, By End User, By Value (USD Million), 2017-2027

Table 5: Arabian Oud Financial Analysis

Table 6: Arabian Oud Business Overview

Table 7: Al Quraishi Financial Analysis

Table 8: Al QuraishiBusiness Overview

Table 9: SHISEIDO Corporation Financial Analysis

Table 10: SHISEIDO Corporation Business Overview

Table 11: UNILEVERFinancial Analysis

Table 12: UNILEVERBusiness Overview

Table 13: ChanelFinancial Analysis

Table 14: ChanelBusiness Overview

Table 15: Dior Financial Analysis

Table 16: Dior Business Overview

Table 17: Guerlain Financial Analysis

Table 18: Guerlain Business Overview

Table 19: MAC Financial Analysis

Table 20:MAC Business Overview

Table 21: Proctor & GambleFinancial Analysis

Table 22: Proctor & GambleBusiness Overview

Table 23: LancômeFinancial Analysis

Table 24: Lancôme Business Overview