GCC Color Cosmetics Market Report: By Type (Luxury, Mass), Product (Nail, Lip, Eye Make-Up, Facial Make-Up, Hair Color, Special Effects), Packaging (One-Time, Refillable), Consumer Group (Men, Women, Unisex), Distribution Channel (Grocery/Department Stores, Supermarkets/Hypermarkets, Multi-Brand Retail Stores, Online) – Latest Trends, Competition Analysis, and Business Opportunities, 2022-2030

Market Overview

In 2021, a $1,277.2 million value was generated from the sale of color cosmetic products in the GCC region. This market is expected to reach $2,314.5 million by 2030, progressing at a CAGR of 6.8% during 2021–2030. This can be ascribed to the increasing disposable income and surging focus of the population toward their appearance enhancement. For instance, according to the Census and Economic Information Center, the disposable income of people in the U.A.E. increased to $299,569.0 million in 2020, from $257,386.2 million in 2010, and in Saudi Arabia, it rose to $658,493.5 million in 2017 from $617,848.7 million in 2016.

Moreover, the increasing demand for organic color cosmetics, rising number of digital marketing channels and influencers, and growing working women population are playing a pivotal role in the flourishing of the color cosmetics industry in the Gulf Cooperation Council countries. However, due to COVID-19, the industry faced several challenges that hampered the market growth in 2020. Manufacturing facilities across the globe were temporarily shut down due to lockdown in 2020. Additionally, the supply chain was completely halted in the pandemic year, which was one of the major obstructions in the growth of the industry. In addition, the shutdown of physical cosmetic stores and beauty salons across the region had negatively impacted the market.

Due to the lifting of lockdowns and other COVID-19 restrictions, the market has started recovering since 2021, as corporates and other facilities have reopened in the GCC. Moreover, the e-commerce channel plays a key role in recovering the market, as it is the only channel that has been highly active in recent years. Also, e-commerce platforms offer diverse product options, door-to-door delivery, and secure payment gateways, which will propel the sale of color cosmetic products through the online channel in the coming years.

Sale of Luxurious Products Will Grow Faster in Coming Years

In the GCC, the demand for luxury products is expected to grow at a higher CAGR, of more than 7%, during 2021–2030. This can be ascribed to the increasing personal income and surging consumer spending. Moreover, changing lifestyles; rising consumer awareness on cosmetics; and appealing packaging are also expected to stimulate the sales of luxury products in the future.

Major Opportunity Areas

• The market outlook for color cosmetics in GCC countries is positive, as their production and demand are expected to grow in the coming years. The surging working women population, the growing tourism sector, and the increasing consumer spending in the region will propel the market during the forecast period.
• Moreover, due to the large population and the increasing number of tourists in the U.A.E., the country is expected to emerge as a key color cosmetics market in the coming years in the region. As a result of this, companies offering such products are investing heavily in scaling up their operations, and creating brand awareness in the nation, which is expected to result in the growth of the U.A.E market in the future.

Color Cosmetic Products Used by Women Generated Majority of Revenue in the Past

Color cosmetic products used by women contributed more than 80% revenue share in the market in 2021. This is mainly due to women's growing spending power, surging population of working women, rising GDP per capita, availability of better products, growing awareness of females toward diverse products, and increasing advertising activities for active color cosmetics for females. For instance, during 2018‒2020, the employment rate of women aged 40‒54 years increased by around 20%, and of the age group 18‒39 years increased by at least 10%, in Saudi Arabia. Private sector employment of Saudi women, on the other hand, grew among most economic activities, with the majority showing an increase of over 10%. Female employment in labor-intensive sectors such as construction, manufacturing, and accommodation and food grew by 9%, 14%, and 40%, respectively, from 2019 to 2020.

Facial Make-Up Products Dominate the Industry

The facial make-up products category is leading the market, with more than 50% revenue share. Availability of an extensive range of facial make-up products and a large proportion of the youth population are supporting the growth of the market in this category.

For instance, the population of Dubai consisted of youngsters aged 15–19 years (accounted for 3.3% of the total population), young persons aged 20‒24 years (7.8%), and adults aged 25‒44 years (58.5%) in 2020. In addition, teens are demanding a greater diversity of cosmetics and fragrances and spending more on products that improve their appearance. Nowadays, the teenage group is involved in social events, partying, and other activities, which have led to the rising demand for color cosmetics, including facial make-ups, in order to improve appearance, smell better, and create a good impression on peers.

Surging Demand for Organic Color Cosmetic Products Drives the Industry

The demand for organic color cosmetic products has been expanding at a high pace. Further, market players are constantly exploring ways to deliver new functionalities and features, and offering diverse products for different skin types (oily, sensitive, and normal). The increasing consumer awareness about the benefits of organic products is also fueling the demand for these products in the region. On the other hand, several factors, such as hormones, diet, smoking, stress, and anxiety affect the health and appearance of the skin negatively. Moreover, the usage of wrong products can trigger allergic reactions. As a result of these, there has been an increase in focus on organic skincare products that help tackle issues specific to various skin types.

Furthermore, soaring environmental issues and strengthening focus on sustainability will continue helping the market gain traction. The manufacturing of green products is more eco-friendly as compared to conventional products, and these products also have fewer side effects.

Increasing Number of Digital Marketing Channels and Influencers

Instagram, YouTube, Facebook, Twitter, Pinterest, and personal beauty blogs are the main digital marketing channels influencing consumers to try new cosmetic products. Manufacturers are collaborating with social media influencers for marketing their products. In the U.A.E., there were approximately 1,000 beauty influencers, as of August 2021, including Elnaz Golrokh, Eljammi Gozali, Joelle Mardinian, Samira Olfat, Alreem Saif, Huda Heidi Kattan, Najla Kaddour, Sonia Ali, and Fyza Ali, who have created an influence over people regarding color cosmetics. Thus, the digital platform is a crucial marketing tool for producers, where they can directly interact with consumers or promote their products.

Market Players Are Introducing New Products and Involving in Acquisitions to Gain Competitive Edge

The GCC color cosmetics market is fragmented, with the presence of major players. In recent years, they have been involved in product launches and acquisitions in order to stay ahead of their competitors. For instance:

• In February 2022, Coty Inc. announced the launch of carbon-captured ethanol fragrances. CarbonSmartTM ethanol is manufactured by Coty's partner LanzaTech, a producer of sustainable components, which makes ethanol by absorbing and processing the carbon that is emitted by industrial activities, before it is released into the atmosphere.
• In June 2021, Unilever Group signed an agreement to acquire skincare brand Paula’s Choice from TA Associates Management L.P. This acquisition would help the Group expand its skincare product portfolio.

Key Players in GCC Color Cosmetics Market Are:

• L'Oréal S.A.
• The Procter & Gamble Company
• Unilever Group
• Beiersdorf AG
• The Estée Lauder Companies Inc.
• Shiseido Co. Ltd.
• Avon Products Inc.
• Oriflame Holding AG
• LVMH Moët Hennessy-Louis Vuitton SE
• Coty Inc.
• Revlon Inc.
• Guerlain SA
• MAC Cosmetics

Market Size Breakdown by Segment

The GCC color cosmetics market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Type

• Luxury Products
• Mass Products

Based on Product

• Nail Products
• Lip Products
• Eye Make-up Products
• Facial Make-up Products
• Hair Color Products
• Special Effects Products

Based on Packaging

• One-Time
• Refillable

Based on Consumer Group

• Men
• Women
• Unisex

Based on Distribution Channel

• Grocery/Department Stores
• Supermarkets/Hypermarkets
• Multi-Brand Retail Stores
• Online

Geographical Analysis

• U.A.E. Market
• Saudi Arabia Market
• Qatar Market
• Kuwait Market
• Bahrain Market
• Oman Market