Published: September 2021 | Report Code: CP12243 | Available Format: PDF | Pages: 108
The Saudi Arabian fragrance market generated $1,738.5 million revenue in 2020, and it is expected to grow at a CAGR of 8.2% during 2020–2030. The key factors responsible for the growth of the market include the rising importance of personal grooming, increasing number of gym-goers, escalating research and development (R&D) spending, rising disposable income, and growing digital marketing activities.
The COVID-19 pandemic has had a tremendous impact on different spectra of the cosmetics industry, with the fragrances sector taking an especially hard hit during the lockdown in Saudi Arabia. Moreover, due to the shutting down of manufacturing facilities due to labor shortage and disruptions in the supply chain, activities in the industry came to a standstill. Thus, the industry, which was growing at 10% before the pandemic, saw negative growth due to the nationwide lockdown and the consequent drop in the demand for consumer products in 2020.
The luxury products category held the larger share in 2020 in the Saudi Arabian fragrance market, based on type. The growing brand consciousness and increasing expenditure on luxury goods by millennials are supporting the sales of luxury products. The demand for these products is expected to remain higher during the forecast period.
The eau de parfum category is expected to be the fastest growing in the fragrance market of Saudi Arabia during the forecast period, based on product. This will majorly be due to the fact that eau de parfum is stronger than any other fragrance because its concentration of essential perfume oils is higher and the content of alcohol is lower.
The synthetic process held the dominating share of the market for fragrances in Saudi Arabia in 2020, based on synthesis. This was majorly because synthetically processed fragrances are long-lasting and cost-effective over those made from natural ingredients.
The men category is expected to be the fastest growing in the Saudi Arabian fragrance market during forecast period, based on consumer group. This will primarily be due to the increasing number of gym-goers because of the rising awareness regarding fitness and health. This is, in turn, resulting in the rising adoption of fragrances by men in order to avoid giving off an unpleasant smell after a workout.
Multi-brand retail stores held the largest share in 2020 in the Saudi Arabian fragrance market, based on distribution channel. This is majorly attributed to the availability of a wide range of products by different brands at such places. Moreover, industry players prefer to provide their brands’ distribution authority to such retail stores because these places offer better advertising opportunities for the products.
The Western region of Saudi Arabia is expected to lead the market and witness the fastest growth during the forecast period. This can be attributed to the growing urbanization and higher disposable income of the people in this part of the country.
One of the major trends in the Saudi Arabian fragrance market is organic and natural-ingredient-based products. Some common natural ingredients used in fragrances are sandalwood, geranium bourbon, lavender, nutmeg, jasmine, rose, lemon, and a wide variety of essential oils and plant extracts, including the extracts of flowers, herbs, spices, barks, and buds. The major factor supporting the demand for organic fragrances is the surging consumer awareness on the ill-effects of the ingredients of synthetic perfumes. This is propelling the use of chemical-free products, to avoid the side-effects of chemical-based ones.
According to the Census and Economic Information Center (CEIC) data, 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 people’s income has raised their willingness to spend on premium fragrances, which, in turn, is leading to the growth of the market.
People all around the globe have become more aware regarding the necessity of leading a healthy life. As a result, fitness has become one of the major areas of focus for millions of people, which is leading to a significant rise in the number of gym-goers. Saudi Arabia was home to approximately 1,280 gyms in 2019. Consumers in Saudi Arabia are willing to spend more on fragrance products to use after a workout, which is leading to a rise in the sales of perfumes in Saudi Arabia.
|Base Year (2020) Market Size||$1,738.5 Million|
|Market Size Forecast in 2030||$3,810.5 Million|
|Forecast Period CAGR||8.2%|
|Report Coverage||Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Regional Breakdown; Impact of COVID-19; Companies’ Strategic Developments; Company Profiling|
|Market Size by Segments||By Type; By Product; By Synthesis; By Consumer Group; By Distribution Channel; By Region|
|Market Size of Geographies||Central; Eastern; Western; Southern|
|Secondary Sources and References (Partial List)||Census and Economic Information Center; General Authority for Statistics; Saudi Arabian Monetary Agency; Ministry of Communications and Information Technology; National Bureau of Statistics; National Health Service; United Nations Department of Economic and Social Affairs; United States Food and Drug Administration; U.S. National Library of Medicine; World Bank; World Health Organization|
The market is fragmented in nature. Some of the major players in the market are Arabian Oud, L'Oréal S.A., Unilever Group, The Procter & Gamble Company, Elizabeth Arden Inc., The Estée Lauder Companies Inc., Avon Products Inc., Symrise AG, and Calvin Klein Inc.
In recent years, players in the Saudi Arabian fragrance industry have been involved in partnerships in order to attain a significant position. For instance:
The Saudi Arabian fragrance market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Type
Based on Product
Based on Synthesis
Based on Consumer Group
Based on Distribution Channel
The fragrance market in Saudi Arabia will witness a CAGR of 8.2% during 2020–2030.
Men will advance the fastest in the consumer group segment of the Saudi Arabian fragrance industry.
The fragrance market of Saudi Arabia is dominated by the Western region because it is the most urbanized and people here have the highest purchasing power in the kingdom.
Natural, organic, eco-friendly perfumes are trending in the Saudi Arabian fragrance industry.
The competitive landscape of the fragrance market in Saudi Arabia is characterized by partnerships.
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