U.A.E. Fragrance Market Report: By Category (Luxury, Mass), Product Type (Perfumes, Body Oils, After Shaves, Candles, Fragrance Sets, Body Wash, Body Creams/Lotions), Gender (Men, Women, Unisex) - Industry Analysis and Growth Forecast to 2030

Market Overview

The U.A.E. fragrance market size was valued at $913.7 million in 2021, and it is predicted to witness a CAGR of 6.6% during 2021–2030. This can be ascribed to the surging investments in advertising and marketing initiatives, especially via digital channels, the rising disposable income, and the increasing demand for custom-made, natural, and eco-friendly cosmetic products in the country.

The U.A.E. has become a popular destination for investments among manufacturers and suppliers of a variety of products in recent years. The market exhibits a high growth potential, owing to the constantly increasing consumer demand for personal care products. Fragrances have gradually become essential daily products for the general public. Additionally, with the rise in internet penetration, the number of social media users has increased considerably. Taking this into consideration, most of the key players in the market are promoting their offerings on social media and other online platforms.

The COVID-19 pandemic had an enormous impact on every aspect of the beauty and personal care industry. To reduce the spread of the virus, several governments, including the U.A.E, had implemented strict regulations, such as lockdowns. This resulted in the shutdown of manufacturing plants, distribution in the supply chain, unavailability of certain raw materials, and logistical challenges in the market. Also, it impacted consumer expenditure, which minimized the sales of fragrance products.

Luxury Products Are Higher Revenue Generator in the Market

In the country, luxury products held a larger revenue share, of about 70%, in 2021. This is because the U.A.E. is an economically strong market, and therefore, major multinational brands often launch their premium products earlier in this country than many others. Also, around 60% of the population of the U.A.E. falls in the age group of 14–40. This population has a significantly higher purchasing power than that of other age groups. Moreover, most of the working population lies under the age group of 18–40 who works as the most powerful catalyst for the surging demand for luxury fragrance products.

Increasing Demand for Fragrance Products Among Men

There is a rise in the use of cosmetics among men in their daily routine, which complements the growth of the market. Men are becoming more concerned about their personalities. Also, after doing the workout, they use products that contain fragrance to remove body odor. Furthermore, as urbanization increases and a fascination with western culture spreads beyond cities, men are opting for spicy, woody, oceanic, and citrus notes.

Perfume Is Highest Revenue Contributor to Market

Perfumes are an important element of both men's and women's grooming rituals in this country, as well as a sign of cleanliness and excellent taste. In recent years, the U.A.E. has seen a significant increase in the number of international perfume companies establishing their operations in the country. By combining traditional oriental elements in their scents and adding contemporary fragrances, they are progressively providing their products to the local populace.

Also, perfumes express the users’ personality, style, and uniqueness. People in the U.A.E. are migrating from traditional to Western fragrances as their tastes change. As a result, numerous Western brands, including Christian Dior SE and Elemis Ltd., are setting up shops in the country, contributing to the expansion of the U.A.E. fragrance industry.

Surging Demand for Eco-Friendly Fragrance Products Will Drive the Market

One of the major drivers in the U.A.E. fragrance market is the surging demand for organic and natural-ingredient-based products. Some common ingredients used in such fragrances are sandalwood, geranium bourbon, and patchouli. However, the industry is mostly reliant on synthetic components, with synthetic fragrances accounting for 60–65% of the total market. On the other hand, 30–35% of the market has been occupied by fragrances made of natural ingredients. The major factor supporting the demand for organic fragrances is the rising consumer awareness related to ingredients used in them. This is owing to the increasing focus on personal health and hygiene, as well as the changing lifestyle, which is driving the consumption of chemical-free products.

Also, people around the globe, including in the U.A.E., are becoming increasingly aware of the importance of a healthy life. As a result, fitness has become a prime area of focus for millions of people, which is leading to a significant rise in the number of gym-goers. According to the Dubai World Trade Centre, in the U.A.E., there are 800 fitness clubs with 523,000 members. Health clubs and gyms that offer personal training and advanced exercise equipment are projected to promote the market growth in the future, as consumers in the U.A.E. are willing to spend more on fragrances to mask the unpleasant odor coming from their bodies after an intense workout.

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To Increase Market Share, Companies Involved in Acquisition and Partnership Strategies

Major players in the market have been involved in acquisition and partnership strategies to remain competitive. For instance:

• In December 2021, The Procter & Gamble Company acquired Ouai, which is a hair care and lifestyle brand. With this agreement, P&G has entered into the fast-growing prestige haircare market.
• In September 2021, Ajmal Perfumes partnered with SAP, a global technology company, to drive digital transformation. Working with channel partner Accely, the company would run on the SAP S/4HANA real-time business suite on the RISE with SAP platform and enhance employee experience with the SAP SuccessFactors human experience management suite. It is also exploring solutions to integrate digital marketing, customer experiences, and loyalty programs.

Key Players in U.A.E. Fragrance Market Are:

• Abdul Samad Al Qurashi
• Arabian Oud
• Candle-Lite Company LLC
• Johnson & Johnson
• Nuxe Inc.
• Rasasi Perfumes Industry LLC
• The Procter & Gamble Company
• Unilever Group
• Weleda Group
• Victoria’s Secret & Co.

Market Size Breakdown by Segment

The research offers the market size of the U.A.E. fragrance market for the period 2015–2030.

Based on Category

• Luxury
• Mass

Based on Product Type

• Perfumes
• Body Oils
• After Shaves
• Candles
• Fragrance Sets
• Body Wash
• Body Creams/Lotions

Based on Gender

• Men
• Women
• Unisex