United Arab Emirates Beauty and Personal Care Market Growth
The UAE government is taking vigorous measures against fake products and making the $1.3 billion beauty and personal care product market more attractive for U.S. exporters with premium brands and valuable trademarks.
A “zero-tolerance” policy against importers of counterfeit products is implemented through laws and regulations as well as inspections and cooperation with the registered brand owners. Brand owners identifying fake products on the market may report incidents to the Department of Economic Development in every Emirate to file a complaint. In addition, customs authorities play an important role to monitor imported and exported goods. For example, the Dubai Customs Authority is a government entity that is responsible for providing border control, community protection, facilitation of legitimate international trade and travel.
The Dubai Customs Authority seized tens of thousands of dollars’ worth of counterfeit cosmetics and personal care products during 2020-2022 and conducted awareness sessions to educate the public about the problem of counterfeits.
Total revenues in the UAE beauty and personal care market are projected to reach $1.3 billion in 2022, with 24% coming from eCommerce channels, according to statista.com. The personal care segment has the largest share of $518.8 million, followed by skin care ($292.5 million), cosmetics ($174.5 million) and fragrances ($142.7 million).
U.S. exporters should look carefully at potential opportunities in this market. The 9.9 million population of the UAE consists of 10% Emirati citizens and 90% of people other nationalities, creating a very diverse market. Consumer purchasing power is high due to per capita income levels of $53,348 per year.
Consumer needs and preferences are affected by many factors, including the diverse cultural backgrounds of the population, but there is an overriding desire to trying new brands. Many consumers are attracted to brands that portray a luxurious lifestyle but there is universal focus on cleanliness and aesthetics.
For example, UAE nationals often prefer traditional Arabic fragrances, such as oud, musk, sandalwood and bukhoor, in products like perfumes, soaps, shower gels as opposed to western scents. The combination of high-income levels and interest in premium brand creates a more discerning customer, who demands high quality in terms of packaging and ingredients. There is also a growing interest in sustainable and environmentally friendly products.
Men in the UAE tend to spend more time and money using beauty and grooming products than in neighboring countries in the region. Also, increasing levels of financial independence for women results in increased consumption of beauty and cosmetics products. There is an increasing demand for products that are personalized according to skin types, personal regime, favored scents Moreover, a strong focus on environmental impact, sustainability, recyclable packaging, clean and cruelty- free ingredients should be considered.
The UAE is a highly competitive market so a carefully prepared marketing strategy, including clear product differentiation and analysis of local culture, is important to successfully build a strong brand name. Similar to the rest of the world, social media and influencers marketing both have a strong presence among the UAE market consumers. According to Statista.com, there is a 97.6% smartphone usage in the UAE, with 80.2% share of WhatsApp application users, and a forecasted number of social media users of 9.83 million. In the UAE’s close-knit society and dense urban settings, word of mouth and social media presence have a huge impact on sales.
Registration of products in the UAE is handled by distributors. The Dubai and Abu Dhabi municipality registration portals are only accessible by UAE registered companies who have an active license. For instance, please see link Apply for Consumer Products Registration for Dubai Municipality portal, which has tabs containing required documents, service procedure and steps along with other useful information.
For more information, please contact Office.Dubai@trade.gov.