Saudi Arabia Fragrance Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Fragrance Market Trends & Drivers

Increasing Demand for Unisex Perfumes

• One of the key trends being observed in the market is the rising demand for unisex perfumes. This is because people have different tastes, and a large number of individuals are looking for an aroma that is not only feminine but also masculine. Moreover, anyone can wear them, and it allows sharing and swapping collections among different genders.
• Furthermore, unisex perfumes are neutral in odor, and millennial consumers are mostly choosing products with inimitable fragrances, in order to build up their personality and individuality.
• In addition, celebrities are mostly supporting unisex perfumes, which target both men and women. Additionally, they are trending among the younger generations as gender-based perfumes are considered traditional.
• Thus, manufacturers of perfumes in Saudi Arabia, such as Ajmal, Arabian Oud, Guess, and Chanel, are focusing on the production of such variants.

Surging Demand for Premium Fragrances

• The demand for premium fragrances is increasing due to the rising personal disposable income and surging consumer awareness of their benefits in society. Premium perfumes are made up of high-quality ingredients, which differentiate them from other cheap products. These are also concentrated and long-lasting and designed to evolve and offer more-sophisticated and refined experience.
• Moreover, individuals are rapidly focusing on self-care. Hence, they use these products as a source of comfort and boost confidence, making them feel good. Nowadays, people are also becoming more conscious of brands and shifting toward quality and premium products, as they have high spending power. Thus, the rising usage of premium products is contributing to the growth of the market in the country.

Regulatory Challenges

• In Saudi Arabia, the perfume and fragrance market encounters notable challenges due to strict cultural norms and regulatory frameworks. The conservative societal values mandate adherence to modesty standards, which restrict the types of scents that can be promoted or marketed.
• Additionally, various complex regulations concerning ingredient sourcing, labeling, and product testing present hurdles for international brands seeking entry in the market. Addressing these restraints necessitates the thoughtful adjustment of marketing strategies and product formulations to resonate with local preferences, while ensuring regulatory compliance, thereby rendering market entry and expansion a meticulous process.

Saudi Arabian Fragrance Industry Outlook

Distribution Channel Insights

• The online category is projected to grow at highest CAGR, of 6.8%, during the forecast period. This can be mainly because a large consumer base is shifting toward online shopping, and the e-commerce sector has significantly grown after the pandemic. This is ascribed to the increasing internet penetration.

During the study, we have analyzed the following distribution channels in the report:

• Grocery Stores
• Supermarkets/Hypermarkets
• Multi-Brand Retail (Largest Category)
• Online (E-Commerce Channels) (Fastest-Growing Category)
• Direct (Through Companies’ Own Offline and Online Stores)
• Others

Type Insights

• Oriental perfumes accounted for the largest market share, of around 45% in 2023, and it is projected to grow at the highest CAGR, of 6.5%, during the forecast period. This is ascribed to the high consumer inclination toward luxury fragrances and exotic ouds on account of their rising standards of living.
• Further, the rich and warm Oriental fragrances are widely used in several religious ceremonies. Moreover, the introduction of perfumes based on natural ingredients, such as musk, exotic flowers, sandalwood, and amber, by international brands is expected to expand their buyer base, which, in turn, is expected to be a significant growth driver during the forecast period.

The following types of fragrances are covered in the report:

• Western Perfume
• Oriental Perfume (Largest and Fastest-Growing Category)
• Concentrated Oil Perfume (Attar)

Preference Type Analysis

• The unisex category accounts for the largest market share, and it is expected to grow at a CAGR of around 6.6% during the forecast period. The popularity of perfumes will continue to climb as the male and female workforce grows. A perfume is a favorite among both genders as one of the most-vital and appealing personal care accessories. Some people prefer a mild perfume, while others prefer a strong one. People have a choice of various types of perfumes, which they choose depending on whether they are at work, home, or a social gathering.

The preference types covered in the report are:

• Male
• Female
• Unisex (Largest and Fastest-Growing Category)

Price Range Insights

• The price range of USD 50–150 is expected to grow at a CAGR of 7.0% over this decade, as well as hold the largest market share. This is due to the increasing usage of masstige perfumes in the country. People are spending more on these products as they have become an essential part of their lives, providing a sense of freshness and confidence to them.
• Additionally, this category also held the largest revenue share in 2023 due to the availability of a large number of products with both local and international brands in this price range.

The categories analyzed in the report are as follows:

• USD 50–150 (Masstige) (Largest and Fastest-Growing Category)
• USD 151–300 (Premium)
• > USD 300 (Luxury)

Age-Group Analysis

• The 21–40 years category held the largest market share, of around 40%, in 2023. This is because most working professionals and millennials fall under this age group, and for them, perfumes enhance presentability by adding a fine touch of fragrance to the clothing, as well as being an indicator of cleanliness and good taste.

Below are the age-groups considered in the report:

• Below 20 years (Fastest Category)
• 21–40 years (Largest Category)
• 41–60 years
• Above 60 years

Purchase Type Insights

• The gifting category held the second-largest share in 2023. This can be ascribed to the emerging concept of gifting fragrances to show care.
• The gifts are sent to the beloved ones on whichever occasion is worth. It is considered a token of extra affection and aids in conveying the sender’s emotions as well as personality. It can be according to the choice of an individual and is also proved to show affection for the person to whom the gift is sent. Several reputed brands sell their products online, which makes it easy for customers to buy and present them to their loved ones.

The purchase types covered in the report are as follows:

• Self (Largest and Fastest-Growing Category)
• Family
• Gifting

Usage Type Analysis

• The daily wear category is expected to witness the highest CAGR, of around 6.7%, during the forecast period. This can be ascribed to the growing awareness of personal hygiene, especially in the wake of the COVID-19 pandemic. The pandemic has made customers more conscious of hygiene at the personal level and at home, as a means to reduce the chances of infection.
• Moreover, it is expected that there will be an improved focus on wellness, and the demand for hygiene products will rise. In addition, customers will increasingly look for products that are trustworthy, and hence, strong and innovative brands that can meet consumer expectations will become significant.

Usage types covered in the report:

• Daily Wear (Largest and Fastest-Growing Category)
• Weekends
• Party

Competitive Analysis

The market has a high degree of fragmentation due to the presence of various domestic and international companies operating in the region. The key players are indulging in R&D endeavors for developing fresh and unique fragrances. They are also innovating packaging designs as well as developing market strategies to excite consumers.

Saudi Arabia Fragrance Industry News

• Old Spice has unveiled three new fragrances, aloe-infused products, and clinical deodorants. It also has launched a campaign, Smell Ready for Anything, which features the new deodorant, antiperspirant, and body wash offerings.
• Ajmal has launched its Aristocrat Platinum eau de parfum.
• The Procter & Gamble Company acquired Ouai, which is a hair care and lifestyle brand also offering body care and fragrances products.
• Ajmal Perfumes has partnered with SAP SE, a global technology company, to drive digital transformation. Working with channel partner Accely, the company runs on the SAP S/4HANA real-time business suite on the RISE with SAP platform and enhances employee experience with the SAP SuccessFactors human experience management suite. It is also exploring solutions to integrate digital marketing, customer experiences, and loyalty programs.