Saudi Arabia Color Cosmetics Market Research Report: By Type (Luxury Product, Mass Product), Product (Nail Products, Lip Products, Eye Make-Up, Facial Make-Up, Hair Color Products, Special Effect Products), Packaging (One-Time, Refillable), Consumer Group (Men, Women, Unisex), Distribution Channel (Grocery/Departmental Store, Supermarket/Hypermarket, Multi-Brand Retail Store, Online) - Industry Analysis and Growth Forecast to 2030

Market Overview

The Saudi Arabian color cosmetics market generated $603.6 million revenue in 2020, and it is expected to grow at a CAGR of 7.1% during 2020–2030. The key factors responsible for the growth of the market include the rising disposable income, growing consciousness about appearance, surging demand for organic color cosmetic products, high investments in advertising and marketing initiatives, including via digital channels and influencers, and growing population of working women.

COVID-19 has affected the production and demand for color cosmetics due to the disruption in the supply chain and financial impact on consumers, respectively. With the lockdown imposed by the Saudi government, retail businesses shuttered and purchasing behavior declined, which changed the market dramatically. The new norms, such as working from home, physical distancing, and wearing of masks, have led to the lower use of cosmetic products. Thus, the color cosmetic market in the kingdom witnessed a decline in its growth rate in 2020.

Demand for Mass Products Is Higher Due to Their Lower Price and Greater Access

The mass products category held the larger share in 2020 in the Saudi Arabian color cosmetics market, based on type. This is majorly attributed to the fact that these products are manufactured in huge quantities at one time, in order to provide greater access to consumers. As a result, they are available at affordable prices.

Rising Consciousness about Looking Good Is Leading To Fastest Sales Growth of Facial Make-Up

The facial make-up category is expected to be the fastest growing in the color cosmetics market of Saudi Arabia during the forecast period, based on product. This will majorly be due to the rising demand for different shades of foundations, blushes, and bronzers that incorporate light-capturing crystals. Moreover, the increasing number of working women is leading to the rising sales of facial make-up products, in order to get a flawless look.

One-Time Packaging Accounted for Larger Revenue Share due To Its Higher Usage

One-time packaging has emerged as the higher-revenue-generating category in the market for color cosmetics in Saudi Arabia. This is majorly due to the fact that single-use plastics are the most-commonly used for packaging, which is commonly known as one-time packaging.

Women Category Expected To Witness Fastest Growth due to Increasing Number of Working Women

The women category is expected to be the fastest growing in the Saudi Arabian color cosmetics market during the forecast period. This will primarily be due to the increasing number of working women and their evolving lifestyle as a result.

Supermarket/Hypermarket Dominate Market due to Their Wide Product Variety

The supermarket/hypermarket category held the largest share in 2020 in the Saudi Arabian color cosmetics market, based on distribution channel. This is majorly attributed to the availability of a broad range of color cosmetics under a single roof, ample parking space, and convenient operation timings. Moreover, the increase in the urbanization rate, rise in the working population, and competitive product pricing boost the popularity of hypermarkets.

Western Region Expected To Witness Fastest Growth due to Rising Disposable Income

The western region of Saudi Arabia is expected to lead the color cosmetics market and is expected to be the fastest-growing category during the forecast period. This can be attributed to the growing urbanization rate and higher disposable income of the people of the western region of the country.

Development of Innovative Products Is Key Market Trend

Industry players are bringing about innovations in their color cosmetics, with the increasing awareness on having an improved appearance among consumers. Moreover, the population of working women has increased over the past decade, and this population is highly conscious about its appearance. According to Our World in Data, in 2017, the female-to-male ratio of labor force participation was 27.99%, which has increased to 28.29% in 2020. The growing working women population, along with the improving lifestyle in the country, is leading to the rising demand for improved color cosmetics.

Rising Disposable Income Is Driving Market Growth

According to the Census and Economic Information Center (CEIC), in Saudi Arabia, the gross national disposable income reached $658,493.5 in 2017 from $617,848.7 in 2016. Moreover, as per the data provided by the Saudi Arabian Monetary Agency, consumer spending in the country increased to $83,916.1 million in the first quarter of 2021 from $80,067.9 million in the fourth quarter of 2020. The increase in the per capita income has raised the willingness of consumers to spend on premium color cosmetics, which, in turn, is propelling the market.

Growing Population of Working Women also Instrumental in Market Advance

Women in Saudi Arabia are joining the labor force at a high rate. During 2018‒2020, the employment rate of women aged 40‒54 years increased by more than 20% and that in the age group of 18‒39 increased by at least 10% in the country. Private-sector employment of Saudi women has been increased among other economic sectors during 2018–2020, with the majority showing an increase of over 10%. Moreover, according to a press release in CNBC published in April 2021, the labor force participation rate for women in Saudi Arabia increased from 20% in 2018 to 33% in 2020.

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Market Players Involved in Mergers and Acquisitions to Gain Significant Position

The market is fragmented in nature. Some of the major players in the 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, and Coty Inc.

In recent years, players in the color cosmetics industry have been involved in mergers and acquisitions in order to attain a significant position. For instance:

• In July 2021, Sephora SA agreed to acquire Feelunique.com from Palamon Capital Partners, a U.K.-based online retailer of premium beauty products that serves more than 1.3 million active consumers in 120 countries, including Saudi Arabia, with more than 35,000 products from over 800 brands.
• In June 2020, L'Oréal S.A. entered into an agreement to acquire Thayers Natural Remedies, a U.S.-based natural skincare brand, from Henry Thayer Company. The brand was incorporated into L'Oréal's Consumer Products division. Headquartered in Easton, Connecticut, Thayers Natural Remedies offers toners and astringents. Moreover, the Doctor Henry Thayer brand has extended its distribution from regular supermarkets to a multichannel system that incorporates mass and beauty retailers, pharmacies, and e-commerce platforms.

Key Players in Saudi Arabia Color Cosmetics Market Are:

Market Size Breakdown by Segments

The Saudi Arabian color cosmetics market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Luxury Product
• Mass Product

Based on Product

• Nail Products
• Lip Products
• Eye Make-Up
• Facial Make-Up
• Hair Color Products
• Special Effect Products

Based on Packaging

• One-Time
• Refillable

Based on Consumer Group

• Men
• Women
• Unisex

Based on Distribution Channel

• Grocery/Departmental Store
• Supermarket/Hypermarket
• Multi-Brand Retail Store
• Online

Geographical Analysis

• Central
• Eastern
• Western
• Southern