Published: September 2021 | Report Code: CP12245 | Available Format: PDF | Pages: 118
The U.A.E. fragrance market generated $720.2 million revenue in 2020, and it is predicted to observe a CAGR of 8.3% during 2020–2030. The heavy investments in advertising and marketing initiatives, especially on digital channels, rising disposable income, rising importance of personal grooming, and growing demand for custom-made, natural, and eco-friendly perfumes are boosting the growth of the fragrance market in the U.A.E.
The COVID-19 pandemic has negatively affected the market for fragrance in the U.A.E., as the implementation of lockdown in the country impacted the workforce and industry operations, customers, vendors, and suppliers. Fragrance manufacturing plants were closed down, and they are currently operating with many restrictions since the lockdowns were lifted. This has resulted in a decrease in fragrance production. In addition, the disruption of the supply chain has resulted in the low availability of raw materials and logistical services, which has negatively impacted the market.
The luxury products category held the dominating share in 2020 in the U.A.E. fragrance market, and is expected to retain its position during the forecast period (2020–2030), based on type. This is mainly due to 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 (2021–2030).
The eau de parfum category is expected to be the fastest growing category in the market for fragrance of the U.A.E. 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.
In 2020, the synthetic bifurcation dominated the fragrance market of U.A.E., based on synthesis. This was owing to the benefits of synthetic fragrances, such as their stronger scent, longer lasting duration, more-complex notes, and low costs. Moreover, natural perfumes are also expected to grow significantly in popularity as they are considered calming, energizing, relaxing, and something that improves the mood.
Unisex will be the fastest-growing category in the market for fragrance in the U.A.E., over the forecast period, based on consumer group. Unisex fragrances are easy to make and incorporate masculine notes. These fragrances smell just as nice on a man as they do on a woman. Moreover, these days, women are readily accepting unisex perfumes because modern women are willing to explore them.
Dubai and Abu Dhabi cumulatively held the major share in the fragrance market of the U.A.E. in 2020. These metropolises display a higher consumption of cosmetic and fragrance products in the country as their population is more cosmopolitan and richer compared to that of other emirates.
The adoption of organic and natural-ingredient-based goods is one of the most-significant trends in the U.A.E. market for fragrance. Sandalwood, geranium bourbon, patchouli, lavender, carrot, ylang-ylang, nutmeg, jasmine, rose, lemon, essential oils, and plant extracts, including the extracts of flowers, herbs, spices, barks, and buds, are the prominent ingredients of such perfumes. The major factor supporting the demand for organic fragrances is the rising consumer awareness related to the ingredients used in them. This is owing to the increasing focus on personal health and hygiene, as well as the changing lifestyle, which are driving the consumption of chemical-free products.
The increasing importance of grooming among men and women is a major driver for the fragrance market in the U.A.E. Fragrances increase the self-esteem and have a positive impact on the overall perception by peers. Some people wear perfumes to enhance their sense of personal hygiene, while others do it simply to emit an agreeable fragrance.
Fragrance companies are turning to digital marketing channels to gain relevant information, grow their business, raise brand awareness, learn how to engage with customers through social listening, and increase customer loyalty. People like to shop online because such platforms provide a larger selection of products, the convenience of not having to go to a store, and better costs with coupons/discounts. Popular brands are targeting shoppers through digital marketing channels; hence, the growing digital marketing activities are boosting the fragrance industry in the country.
|Base Year (2020) Market Size||$720.2 Million|
|Market Size Forecast in 2030||$1596.6 Million|
|Forecast Period CAGR||8.3%|
|Report Coverage||Market Trends, Drivers, and Restraints, Revenue Estimation and Forecast, Segmentation Analysis, City Breakdown, Impact of COVID-19, Companies’ Strategic Developments, Market Share Analysis, Company Profiling|
|Market Size by Segments||By Type, By Product, By Synthesis, By Consumer Group, By Distribution Channel, By City|
|Market Size of Geographies||Dubai, Abu Dhabi, Sharjah, Ajman, Ras-al-Khaimah, Others|
|Secondary Sources and References (Partial List)||Anti-Aging Medicine World Congress, Bureau of Labor Statistics, Census and Economic Information Center, General Authority for Statistics, National Bureau of Statistics, World Bank, World Health Organization.|
In recent years, players in the U.A.E. fragrance market have involved themselves in partnerships in order to gain a significant position. For instance,
The U.A.E. 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 the U.A.E. generated $720.2 million in 2020.
Based on consumer group, the unisex category dominates the U.A.E. fragrance industry.
Players in the fragrance market of the U.A.E. receive the highest revenue from Dubai and Abu Dhabi.
The U.A.E. fragrance industry is growing with the rising female workforce participation, rising disposable income, and aggressive marketing by the players.
The fragrance market in the U.A.E. is characterized by partnerships and acquisitions.
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