The cosmetics or beauty products industry in the world is one sector which remains impervious to the ups and downs markets. Overall sales are indeed affected in the event of an economic downturn, but one can count on sales of cosmetics to maintain a certain volume overall. This is because of continuing and growing usage of products by women, and increasingly, by men, across the world.
The Middle East and Africa region represented 5.71% of the global cosmetics market share as of 2016, and it is expected that the market will to be worth USD 25.611 billion in 2016, and is expected to grow at a CAGR of 9.87% over the forecast period, to USD 44.55 billion by 2022.
The Middle East and Africa cosmetics market is underdeveloped because of poverty rampant across several regions and several people living under US$ 2 a day (by PPP). However, it is believed that these markets will grow at an exponential rate, with even thelow-incomee population in Africa looking to maximize the worth of their spending on beauty to achieve better appearance. In developed Middle Eastern countries, the market for cosmetics is comparable with those of other regions of the world. Rising disposable income, urbanization and a number of unpenetrated markets drive the cosmetics market growth in MEA. The region is especially critical for the development of cosmetics products exclusively for African and South Asian skin types, heralding a large and potentially high growth market share.
Cosmetics can be subdivided by the areas of application. Cosmetics used on the face (and other parts of the body like foundation, glitter, etc.) include products like primer, foundation, concealer, face powder, bronzer/blusher, face contour creams, highlighter, and setting spray to help makeup stay put longer. Cosmetics used on the lips include lipsticks in matte or non-matte and other varieties, lipstains, colored lip balms, and lip glosses. Furthermore, the eye-area makeup items include kohl, eye liners, eye brow pencils (and recently, fake eye brows), fake eye lashes, mascara, and more. Another extension of cosmetics is nail colors. Aside from these products, there are ancillary industries for cosmetics supportive products like make up brushes, beauty blenders, etc. The most popular trend is the blending of multiple benefits under one beautifying product. The result of this trend, originating in South Korea, is the BB (followed by CC, DD and EE) creams, which have the colour correction properties of foundation, SPF benefits of sunscreen and a multitude of other medical and natural benefits.
The predominant trends for cosmetics include lasting power and new colour palettes, increasing market share for ethnic products, and an increased preference for vegan, organic and natural beauty products to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products.
High disposable income in Middle Eastern countries are the reason for a high penetration of luxury brands like Dior, Guerlain, Clarins, Clinique, Lancôme, Estee Lauder, Shiseido, etc. These brands are now making their way into developing markets of Nigeria, Kenya, etc., at a fast pace due to rising disposable income and inclination to spend more on appearance. Distribution is pervasive through exclusive stores of luxury products in malls or standalone, while ecommerce is emerging as a competitor to direct sales for all mass and premium brands. Direct sales for Avon continue to hold and grow market value. Customers are increasingly looking for value for money products which are natural and beneficial for the skin, provide benefits of high priced premium products, at a lower than premium cost. This product class has been dubbed “masstige”.
Some important players in the mass/masstige makeup/cosmetics field include P&G, Beiersdorf, Unilever, MAC, Revlon, Olay, L’Oreal, Avon, etc. among others.
Rising disposable incomes, an inclination to spend on appearance, a large section of the world’s teens growing older, younger, a union of for skin-benefiting and beautifying aspects in new makeup, continuing breakthrough research on Africa and South Asia specific skin tones based products, large swathes of unpenetrated potential market regions are some of the drivers of this market.
Income inequality, tight purse strings, lack of unpenetrated within the developed regions, insufficient research into the prevalent trend of organic products, inadequate regulatory, and a few other factors make up the challenges in this market.
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