What is the Future of Beauty & Grooming Products Market in the UAE?

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beauty care products online shopping in the UAE

The beauty and grooming market is on the rise, exhibiting a CAGR of 6-8% consistently over the last five years. But the market has encountered some speed breakers and roadblocks due to the sudden onset of COVID-19. Now, as the impact of the disease seems to subside, the market is set for a revival.

The United Arab Emirates has witnessed a substantial surge in the consumption of beauty products online. Let’s look at the future of the beauty and grooming market in the UAE amid the current situation.
Beauty and Grooming Market in the UAE

According to Statista, the global beauty and personal care market is valued at $483 billion in 2020 and will grow at a CAGR of 5.0% during 2020-2025. The beauty and grooming market in the UAE stood at $1.64 billion in 2018 and was anticipated to grow at a 4.8% CAGR over the next five years.

Several factors have contributed to the rise of the personal care market in the UAE. These include:

1. Escalating Focus on Self Presentation

Everyone wants to look good, and the UAE is no different. Though the country has had a history of conservative dressing, the trends are changing. Both men and women are embracing branded clothes and accessories to look better and more presentable. This inclination towards being more fashionable has given rise to the beauty care products online shopping in the UAE.

2. Increasing Disposable Income

The per capita GDP in the UAE has been increasing by 6-7% since 2016. This has led to an increase in per capita income, and hence, the disposable income. Therefore, the people of the UAE have more spending power than they had before. And when it comes to spending on shopping, a large share of online shopping expenditure goes to fashion and grooming.

3. Access to International Brands

There was a time when local fashion and grooming brands dominated the markets in the UAE. Not that they were not good, but people wanted to shop online for international beauty products. Lately, many global brands have launched their outlets in the UAE. Some fashion and grooming brands with a presence in the UAE are Gucci, Louis Vuitton, Lakmé, and more.

4. Online Retail

The biggest factor contributing to the rise of the personal care market in the UAE is online retail. Back in the day, people had to drive to the store to buy beauty care products online. Now, they can do it all from the comfort of their home. Plus, brands that didn’t initially have a presence in the UAE are now accessible via online retail. As a result, there is a massive boom in the fashion and grooming market in the UAE.

Future Trends in the Beauty and Grooming Market in the UAE

The global beauty market could reach $800 billion by 2025, suggest various projections. And this time, the Middle East will play a pivotal role in the industry. Besides, there have been several changes in consumer behavior, and thus, brands need to adapt accordingly.

Here are a few future trends to look out for in the beauty and grooming market.

1. Increasing Brand Loyalty

It’s fine to be skeptical as a business owner that your customers are constantly looking to go to your competitor. But in reality, they’re not, especially in the beauty and grooming industry. The research suggested that most customers prefer sticking to a brand, and rightly so.

Fashion and grooming is a tough industry for businesses. People will always have second thoughts about the quality and credibility of your top beauty products online. Hence, consumers want to stick to brands they can trust as much as brands want loyal customers.

And this trend will continue in 2021 and beyond. Customers will tend to stick to a handful of brands they trust. This would provide opportunities for companies that already have a loyal customer base. But at the same time, it would be difficult for newer retailers to establish themselves in the vying market.

2. Increasing Demand for Clean and Natural Beauty

“Green,” “organic,” and “natural” aren’t mere buzzwords. They’ve become a real thing, as 60% of consumers agree they would try a new product if it’s “clean.” These trends suggest a paradigm shift toward organic and natural beauty and grooming products. And it goes without saying that the brands will need to adapt.
People have become more conscious than ever. Gone are the days when brand reputation and flashy adverts were all that was required to sell your products. Consumers now do proper research, analyze the ingredients, and make decisions pragmatically.

Therefore, beauty and grooming brands need to focus on natural and organic products. Many brands have already taken the initiative. You can easily find ethanol-free shampoos, face wash with natural ingredients, etc.

3. Personal Hands-On Experience

Even after 26 years into eCommerce, customers still want a hands-on, store-like experience before buying. This is especially true for online shopping of beauty and grooming products. More than 40% of customers say they won’t buy beauty products online without trying it personally.

Hence, brands with omnichannel selling capabilities would shine. But even if you don’t have the luxury to sell offline, you overcome this hurdle. One way is to offer free samples to test. You can also offer a transparent, easy-return policy and money-back guarantee.

4. Targeted Marketing and Advertising

Let’s say your primary market is the East Asia region: China, Japan, and Korea. You’re promoting a beauty cream that removes wrinkles and makes you look ten years younger. And your target customers are middle-aged ladies with wrinkles.
But what if your advertisement features an African woman in her early 20s? Would your target customers relate? Brands will, therefore, need to be more specific and thorough in their marketing and advertising efforts.

Conclusion

With factors like eCommerce and digital payments in hindsight, the beauty and grooming market has no looking back. The market will surge, and the brands will need to respond accordingly. Contrarily, customers will have a chance to explore new shopping opportunities.