Increasing demand from younger consumers, growing adoption of western culture and lifestyle, and an increasing number of beauty salons across the country, will propel the UAE cosmetics market to $3 billion by 2025, according to a new study by Research and Markets.

Researchers say market gains can also be attributed to rising consciousness about appearance in the UAE. They note that younger consumers are much more into experimenting with new cosmetics products, and Millennials are the regular users of cosmetics due to their office-going culture. 

Last year, fragrances and deodorants held the largest market share in the UAE, due to the prevalence of major international brands and high consumer preference toward luxurious fragrances in the country. Fragrances are the part of their lifestyles, and consumer in the UAE consider it holistic before prayers and using scents is also considered sacred. Bath and shower products were next due to their regular use and multiple product variants available in the market, according to Research and Markets.

Based on the regional segmentation, the market is segmented into Dubai, Abu Dhabi, Sharjah, and Rest of UAE. Until 2019, Dubai held the largest market share in the UAE cosmetics market due to its higher GDP and higher living standards. Abu Dhabi is second largest cosmetics market, which is also generating high demand due to continuously increasing GDP and population and prevalence of most of the international brands.

The supermarkets/hypermarkets segment holds the largest share in the UAE Cosmetics Market, although in 2020, due to COVID-19, the online channel is emerging as a preferred channel by the consumers on account of safety it offers as well as due to closure of malls.

Some of the leading cosmetics companies in the UAE include L'Oreal, Shiseido, Unilever, Estee Lauder, Procter & Gamble, Coty, Chanel, Dior, Guerlain, Clarins and Clinique. Leading players have a strong focus on quality to maintain their brand positioning in the UAE market.