The growing importance of personal grooming, rising number of people going to the gym, surging spending on research and development (R&D), rising disposable income, and growing marketing activities via digital channels are the major growth drivers for the Saudi Arabian fragrance market. Due to the aforementioned factors, the industry is projected to generate $3,810.5 million revenue in 2030, advancing at a CAGR of 8.2% during 2020–2030.
During COVID-19, non-operational manufacturing facilities led to a negative impact on the market for fragrances in Saudi Arabia. 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. Due to the prevailing logistical issues and loss of manpower, production and sales became a major challenge. At the same time, the confinement of people indoors led many to stop applying fragrances altogether, which also led to a decline in fragrance sales.
The Saudi Arabia fragrance market is categorized into parfum, eau de parfum, eau de toilette, eau de Cologne, and others, based on product. Among these, the eau de parfum category is expected to generate the highest revenue during the forecast period (2021–2030). This would be mainly due to the fact that this perfume is the strongest among all as it consists of higher concentrations of perfumed essential oils and lower concentrations of alcohol.
Moreover, the market for fragrances in Saudi Arabia is categorized into luxury products and mass products, based on type. Out of these, the luxury products category will likely generate the highest revenue throughout the forecast period. This will be primarily due to the rising purchase of luxury products by millennials.
Players in the Saudi Arabian fragrance market are involved in partnerships to gain a significant position. For instance, in January 2021, Al Malki Group partnered with Estée Lauder Companies Inc. for gaining the exclusive rights to sell Estée Lauder, Clinique, and Tom Ford products at Saudi Arabian stores.
Major players operating in the market for fragrances in Saudi Arabia 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.