U.A.E. Fragrance Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

U.A.E. Fragrance Market Trends & Drivers

Adoption of Social Media Platforms for Brand Promotion

• In recent times, the developments in information and communication technologies (ICTs), particularly social media, have revolutionized the way marketing activities take place. Social media has surfaced as a cost-effective and efficient information exchange platform for all. Over the years, it has diversified its role and proven to be a distinct and pivotal marketing tool in shaping the success of any product/service/business. In fact, social media marketing serves as a great foundation in the pursuit of locating customers, creating an environment to engage them and, at the same time, contacting promoters for various brands. Moreover, companies nowadays use it for increasing their brand awareness and driving website traffic and sales, owing to the rise in the internet penetration. In 2022, internet penetration stood at 99% of the total population. Social media also helps in generating engagement around the brand, creates a community, and serves as a customer support channel. Companies selling all kinds of products use shoppable posts, social media contests, and target ads to enhance sales.
• U.A.E.-based perfume brands have undertaken an array of advertising and promotional activities to stay competitive and create greater awareness about their unique and novel product lines. For instance, Lattafa Perfumes, Al Haramain Perfumes, Tola, Sw@iss Arabian, Emper Perfumes, Al Rasasi, Ajmal Perfumes, Alinjaz Perfumes, Nabeel Perfumes, and Coral Perfumes are gaining youths’ attention via social media marketing, which, in turn, is expected to boost the perfume demand across the country.
• Youths in the U.A.E. spend 4.35 hours on social media daily. Much like the rest of the world, social media has become an essential part of the daily life in the U.A.E. Hence, fast-moving consumer goods (FMCG) companies are spending more on brand promotion through social media, as it has become vastly popular among the populace. Further, the growing number of beauty and perfume influencers on social media platforms will boost the market in the future.

Presence of Premium Versions of Scents and Perfumes

• Besides the high disposable income, sophisticated retail landscape, growing youth population, and local consumers’ emphasis on personal grooming and attractiveness, the substantial demand for premium and niche products fuels the fragrance demand in the U.A.E. The proportion of the disposable income spent on premium perfumes is quite high in the country, as fragrances and perfumes are an important part of the local lifestyle. Therefore, the U.A.E. market continues to witness substantial sales of high-end, signature products to the local population. The demand for such high-end fragrances is bolstered by the high disposable income of the individuals and their inclination toward luxury perfumes, owing to their attributes of being long-lasting and unique smelling.
• Further, the cosmetics sold in the Gulf region are often customized to suit regional traditions and cultures, as the makeup styles in the region differ from the rest of the world. Luxury fashion houses, such as Tom Ford, Hugo Boss, and Versace, offer customized, high-quality products, in sync with the local tastes. This strategy has proven especially successful in the fragrance market for companies selling oud (Arabian perfume)-based fragrances.
• Further, the high availability of such expensive perfumes at malls and specialty retail outlets, introduction of perfumes with fusions of Middle Eastern and Western influences, and growing popularity of e-commerce platforms are bolstering the market growth.

Adverse Effects of Synthetic Chemicals

• The use of various synthetic chemicals in the fragrances is one of the factors hampering the market growth.
• These chemicals can lead to various health concerns, including, allergic reactions and skin irritation. Due to such health concerns, consumers are looking for natural or organic alternatives, which is impacting the sales of synthetic fragrances. Hence, the surging demand for organic and natural ingredient-based products is affecting the growth of the perfumes market.
• The major factor supporting the demand for organic fragrances is the rising consumer awareness related to the ingredients used in them. These natural fragrance products are hypoallergenic as they contain no chemicals and are formulated using organic ingredients, rather than petroleum derivatives. Hence, they do not also cause allergies and irritation and are good for the skin and overall health.
• Additionally, natural perfume sprays possess aromatherapy benefits, as blends of essential oils calm and uplift the mood and balance emotions. Moreover, the growing demand for natural-ingredient-based perfume products across the globe is projected to provide significant opportunities for industry growth.

U.A.E. Fragrance Industry Outlook

Distribution Channel Insights

• The multi-brand retail category held the largest market share, of around 35%, in 2023. They offer a wider variety of products than single-brand stores, which can be a great option for shoppers who want to compare prices and find the best deals.
• In Addition, multi-brand stores can be a good place to find unique or hard-to-find items. Moreover, they can be found in a variety of settings, including department stores, specialty stores, and online retailers. They offer consumers a wider variety of products to choose from, which can be a major advantage.

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 40% in 2023, and they are projected to grow at the highest CAGR, of 7.3%, during the forecast period. This is attributed to the high consumption of heavy, exotic and enticing fragrances by both men and women. The country has a well-established perfume culture, which is deeply intertwined with both religious and social rituals.
• Further, the growing presence of numerous oriental perfumes with various top, heart, and base notes made from natural extracts and oils and the growing introduction of oriental perfumes by huge international brands are expected to drive the market growth.

Types covered in the report:

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

Preference Type Analysis

• The unisex category accounted for the largest market share, and it is expected to grow at a CAGR of 7.4% during the forecast period. This is because they are widely sought after by both the men and the women in the country.
• Moreover, companies operating in the U.A.E. market have a wide range of unisex perfumes with different notes and sizes.
• Furthermore, these perfumes have become an essential part of the personal care routines of both men and women in the U.A.E. Perfumes that are being used by people signify their personality, style, and individuality. With the changing consumer preference, people in the U.A.E. are becoming influenced by Western perfumes, due to which many companies from the West, such as Christian Dior SE and Elemis Ltd., have started their business in the country, which is contributing to the growth of the market.

The preference types covered in the report are:

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

Category Insights

• Luxury products held the larger revenue share, of about 70%, in 2023. 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.
• Additionally, 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, which acts as the most powerful catalyst for the surging demand for luxury fragrance products.

Categories analyzed in the report are as follows:

• Luxury (Larger Category)
• Mass (Faster-Growing Category)

Age-Group Analysis

• The 21–40 years category held the largest market share, of 45%, in 2023. This is due to the high and regular usage of perfumes and oils by the millennials as an essential part of their daily routine.
• The rising number of working individuals and expat population within this age group also drives the market growth.

Below are the age-groups considered in the report:

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

Market Nature - Fragmented

The market has a high degree of fragmentation due to the presence of various domestic and international companies operating in the region.

Major players in the market have been involved in acquisition and partnership strategies to remain competitive. For instance, The Procter & Gamble Company has acquired Ouai, which offers fragrances, body care, haircare, and other beauty products.

U.A.E. Fragrance Companies News

• 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.
• In February 2021, Ajmal launched the Aristocrat Platinum Eau De Parfum, which claims to embody luxury, with a lasting bold imprint.