The perfume market in the United Arab Emirates is growing rapidly due to increasing disposable income. In addition, increasing investment in advertising campaigns, growth in digital marketing and ever-increasing importance of people are also contributing to the growth of the market. Estimated at $720.2 million in 2020, The UAE fragrance market is expected to grow at a CAGR of 8.3% (CAGR) between 2020 and 2030according to P&S Intelligence .
In Saudi Arabia, the perfume market is projected to grow at a CAGR of 8.2% and reach US$3810.5 million in 2030based on a 2020 value of $1,738.5 million .
In both countries, the fragrance market has been negatively impacted by the COVID-19 pandemic, with a sharp decline in sales in 2020.
In the next few years, the Unisex Perfumes should play a key role in both markets. The younger generations in particular seem to be less interested in the traditional segmentation between feminine and masculine perfumes. Perfume companies take this into account by designing gender-neutral perfumes.
During natural fragrances The highest growth rate of 8.5% (TAC) is expected in Saudi Arabia, while consumers in the UAE seem to prefer long-lasting synthetic fragrances.
The request for luxurious perfumes should also rise in both markets. Growing awareness of brands and increasing purchases of luxury goods by millennials are the key growth drivers for the prestige and luxury segment.
Both markets are benefiting from favorable developments in average disposable income. According to P&S Intelligence, almost 60% of the UAE’s population is currently in the 14-40 age group and this population has significantly higher purchasing power than other age groups.
According to the Census and Economic Information Center (CEIC), gross national disposable income in Saudi Arabia reached $658,493.5 in 2017, compared to $617,848.7 in 2016. In addition, according to the Saudi Arabian Monetary Agency, consumer spending in The country reached $83,916.1 million in the first quarter of 2021 compared to $80,067.9 million in the fourth quarter of 2020.
The increasing participation of people in social events and the need to make a good impression on their peers are also contributing to the increased use of fragrances.