According to market research company Kuick Research, Saudi Arabia has emerged as an exceptionally attractive market for cosmetic companies to introduce their new products in, as it is one of the largest beauty markets in the world and is endorsed by affluent clientele. The demographic variety of consumers that are spread within the Saudi Arabia translates into a diverse market that allows companies to offer variety of product across varied price spectrum, and while the market for luxury products has a large clientele in the Saudi Arabia, there is also a strong market for regular, value-for-money product lines. Although the cosmetics market is dominated by women’s products, spending by men is also on the rise.
Trendwise, the cosmetics market in Saudi Arabia is witnessing a new drift toward the increasing demand of Halal-certified cosmetics products. The exponentially increasing preference for Halal cosmetics products has led to change in the business strategy of the local as well as international companies present in the market. Companies are now changing their product assortment in order to accommodate the growing demand for Halal cosmetics products due to transition in the customer preference for Halal products.
Halal certification and acceptance of Halal products had been widespread in the hospitality, food, packaging, banking and finance industries in the Middle East and specifically in the Saudi Arabia and UAE. In the food sector, Halal consciousness is especially high among consumers as well as the governments. However, the demand for Halal cosmetics and beauty products is not as strong. With increasing consumer awareness and a willingness to pay for quality products, the scenario is changing, thereby transforming the beauty, cosmetics and personal care industry into a potential sunrise segment for the region.