1. It’s Big According to Euromonitor
International ( www.euromonitor.com),
the beauty and personal care industry’s
retail value in the Middle East and
Africa totaled $29.9 billion in 2016.
2. The Middle East Is Challenged, but
For L’Oréal, the Middle East and
Africa were the weakest among new
markets in the first quarter of 2017.
The company reported that sales in the
region were down 18.8% on a like-for-like basis, and down 16.3% based on
reported figures. The company noted
that petroleum-dependent Saudi Arabia
continues to slow.
In reporting its latest results, Estée
Lauder noted that the Europe, Middle
East and Africa (EMEA) regions
collectively reported a net sales gain of
13% in constant currency, with a 30%
rise in global travel retail. However,
the Middle East and Turkey continued
to represent economic difficulties,
according to the company. Excluding
the Middle East, the total EMEA region
grew 15%. In the Middle East, Estée
Lauder reported declines in inventory
tied to weaker retail traffic. The
negative sales trend is expected to ease
somewhat, according to the company.
Despite these challenges, there
remain growth opportunities in the
region. For instance, L’Oréal reported
continued growth in Pakistan and
Egypt. In addition, L’Oréal Luxe
performed particularly well in the
And countries such as Iran continue
3. Amazon Is Staking a Claim
to see demand for hair and skin care,
fragrances, eye makeup, nail polish
and prestige beauty, according to the
organizers of Iran Beauty & Clean.* In
fact, the country’s beauty care market is
poised to be worth $5 billion this year.
Recently, Amazon purchased the
largest Middle Eastern online retailer,
Souq.com, for a reported $650
million (according to CNN). Souq.
com currently carries about 2,200
beauty products, including SKUs from
Clinique, Lancome, Philips, Calvin
Klein, e.l.f, Shiseido and Joelle Paris.
The 12-year-old retailer boasts more
than 45 million site visits each month
and has operations in the United Arab
Emirates, the troubled market of Saudi
Arabia and the booming market of
Egypt. Leveraging its technology and
expertise, Amazon is betting on taking
Souq.com to the next level.
4. Multinationals Are Investing Locally
Unilever, which, along with
Beiersdorf and L’Oréal, is among the
top personal care players in the Middle
East and Africa, recently opened a new
100,000-square-meter factory in Dubai
in order to stamp its regional products
with “Made in the UAE.” The facility
will produce 500 million products,
totaling 100,000 tons of liquid product
each year, with 80% of the goods
exported to the broader EMEA region.
Brands that will be manufactured at
the site include Dove, Fair & Lovely,
Lifebuoy, Vaseline, Clear, TRESemme
Meanwhile, K-beauty giant
Amorepacific has launched a play for
the Middle Eastern market via a deal
For many multinational beauty and personal care
brands, Dubai is often a gateway market and
manufacturing hub for the larger Middle East and
Africa region, but it’s far from the only growth area.