SAUDI ARABIA COSMETICS MARKET

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MARKET INTELLIGENCE . CONSULTING www.techsciresearch.com

F O R E C A S T & O P P O R T U N I T I E S

SAUDI ARABIA COSMETICS MARKET

2016 – 2026

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Scope of Report

Product of Interest (POI): Cosmetics

Review Period 2016 – 2019

Base Year 2020 Estimated Year

2021 Forecast Period

2022 – 2026 Year Range

Cosmetics are constituted from a mixture of chemical compounds derived from either natural sources or synthetically created ones. Cosmetics comprises articles that can be sprinkled, poured, rubbed, sprayed, or other any way applied to the body for cleansing, altering, or enhancing the appearance.

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Market Segmentation

REGION

DISTRIBUTION CHANNEL

• Departmental Stores

• Supermarket/Hyper Market

• Beauty & Cosmetics Stores

• Online Sales Channel

• Others

• Convenience Store

• Kiosks

• Northern & Central

• Southern

• Eastern

• Western CATEGORY

• Body Care

• Hair Care

• Color Cosmetics

• Men's Grooming

• Fragrances

• Others

• Talcum Powder

• Face Powder

• Hair Removal Creams

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3 T a b l e o f C o n t e n t s

RESEARCH

METHODOLOGY

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Research Methodology

✓ Identifying Key Opinion Leaders

✓ Questionnaire Design

✓ In-depth Interviews Data Collection Developing List

of Respondents Formulating

Questionnaire Market

Profiling Data

Validation

Data Analysis

In-depth secondary research was conducted to

determine top players in Saudi Arabia cosmetics market, overall market size and segmental market size.

In order to conduct industry experts’

interviews, TechSci formulated a detailed

discussion guide.

List of industry players and industry

specialists was developed.

TechSci conducted interviews with industry experts and

industry players for data collection and

verification.

Data obtained as a result of primary

and secondary research was validated through

rigorous triangulation.

The data was scrutinized using MS-Excel, statistical

tools and internal proprietary database to

obtain qualitative and quantitative insights about

Saudi Arabia cosmetics market.

Data Collection

Data Filter

& Analysis Research &

Intelligence

Actionable

Insights Business Solution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing Aspects/Dynamics

✓ Government Policies

✓ Final Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn

✓ TechSci Internal Database

✓ Factiva

✓ Hoovers Paid Sources

✓ Company Websites

✓ Company Annual Reports

✓ White Paper Study

✓ Financial Reports

✓ Investor Presentations

✓ Regulatory Body

✓ Associations, etc.

Secondary Research Primary Research

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Research Methodology

Baseline Methodology

Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia cosmetics market. The team has analyzed

the outlook of various segments of this market, while considering the major influencing factors such as the introduction of male grooming

cosmetics line to widen the consumer base and increase the sale of cosmetics products. The study includes market forecasting, which would

enable our clients to take better decisions while planning their strategy to achieve sustainability in Saudi Arabia cosmetics market.

Methodology Followed for Calculation of Market Size:

• Market Size By Value : Market size, in terms of value , for the year 2019 was calculated based on information collected through exhaustive

secondary research and primary surveys, with various key opinion leaders/stakeholders, such as cosmetics companies, distributors,

suppliers, industry experts, and other industry participants.

• The team interviewed more than 40 – 50 cosmetics companies, 180 – 200 end users, and 15 – 20 industry experts and other value chain

stakeholders in Saudi Arabia cosmetics market to obtain the overall market size from 2016 to 2019, which was validated by the Delphi

technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2016-

2019.

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Research Methodology

• Respondents were asked about the current and future market growth rates, market shares by category, by distribution channel, by region and by company. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders.

Methodology Followed for Calculation of Market Shares:

• Market shares by category, by distribution channel, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares, trends and recent development in the Saudi Arabia cosmetics market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting:

• TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.

• Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia cosmetics market, TechSci Research used various forecast techniques such as:

✓ Moving Average

✓ Time Series Analysis

✓ Regression Analysis

✓ Econometric and Judgmental Analysis

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Research Methodology

TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long- term period to estimate the demand and to reach accurate market numbers. It should be noted that the figures compiled are only for the organized market including market share data.

Partial List of Companies Interviewed Key Secondary Sources

▪ Arabian Oud

▪ L'Oréal KSA

▪ Oriflame Saudi Arabia

▪ Unilever Arabia

▪ Procter & Gamble Saudi Arabia

▪ Avon Beauty Arabia

▪ Sephora Saudi Arabia

▪ Shiseido KSA

▪ Dior Beauty KSA

▪ The Estée Lauder Companies Inc.

▪ Cosmetics Industry Association

▪ World Bank

▪ TechSci Research Proprietary Database & Knowledge Repository

▪ Company Annual Reports

▪ Industry Reports

▪ Statista

▪ News Dailies

▪ Credible Paid Databases

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Industry Brief

According to TechSci Research report,“Saudi Arabia Cosmetics Market By Category (Body Care, Hair Care, Color Cosmetics, Men's Grooming, Fragrances, Others (Talcum Powder, Face Powder, Hair Removal Creams, etc.)) By Distribution Channel (General Stores, Supermarket/Hyper Market, Specialty Stores, Online Sales Channel, Others (convenience store, departmental store etc.)) By Company, By Region, Forecast & Opportunities, 2026”, Saudi Arabia cosmetics market is expected to grow at a steady rate during the forecast period. Cosmetics are the products which are applied to the body especially on hairs, face, teeth, neck, and other parts to enhance the beauty or appearance of the applied area. Cosmetics aids in lightening the complexion, improve the quality of the skin, and provide protection from outer harmful environment such as sunscreen. Technological innovations and advancements for introducing environment friendly packaging designs is attributing to the cosmetics market growth in Saudi Arabia. Growing focus on the maintaining the personal well-being of the consumers, Saudi Arabia cosmetics market is on high demand. Adverse climatic condition of Saudi Arabia is leading consumers for high investments in cosmetics products to preserve the healthiness of skin. Quality of the water supplied is not up to mark which when consumed or used for bathing or cleaning purpose gradually deteriorates the skin quality thereby paving the market for cosmetics market demand to retainone’s appearance. GS Société Générale de Surveillance SA of Saudi Arabia is appointed by Saudi drug and food authority for conformity services to check the import of cosmetic and personal products in Saudi Arabia. The launch of initiatives to promote the import of cosmetics products is Saudi Arabia is also fostering the growth of the market. Rising e-commerce platforms in Saudi Arabia to promote the sales of different cosmetic products into the Saudi Arabia market and aid to the convenience of the consumers is contributing to the Saudi Arabia cosmetics market growth. Customers can read about the full specification of the product and reviews by the other users and purchase the cosmetic products. Also, efficient, and quick delivery by e-commerce industries and the easy facility to return the products is accelerating the cosmetics market demand in Saudi Arabia. Rising demand for dermatologically tested products by consumers in Saudi Arabia is aiding to market demand. Increase in concerns in middle- aged consumers about their appearance and aging skin is leading preference shift towards usage of anti-aging products. Demand of natural and herbal based cosmetics products is aiding to the cosmetics market growth in Saudi Arabia. Presence of key players in Saudi Arabia region is driving the cosmetic products.

Well-known products with sustainable practices are higher in demand in Saudi Arabia due to side-effects of using chemicals on the skin surface. Increase in the numbers of female working population in Saudi Arabia is leading to surge in affordability for premium cosmetics products purchase.

Saudi Arabia Cosmetics market is segregated into category, distribution channel, region, and company. Based on category, market is further divided into body care, hair care, color cosmetics, men's grooming, fragrances, and other remaining cosmetic products. Body care segment is expected to grow in the predicted period owing to advertising strategies adopted by major key players. Also, celebrities are hired to endorse the cosmetic products to increase the product reach to all the sectors of society. Also, Saudi Arabia suffers from hot and arid climate most of the time which is expected to increase the sunscreen market used to protect the body from harmful radiations of the sun.

Arabian Oud, L'Oréal KSA, Oriflame Saudi Arabia, Unilever Arabia, Procter & Gamble Saudi Arabia, Avon Beauty Arabia, Sephora Saudi Arabia, Shiseido KSA, Dior Beauty KSA, The Estée Lauder Companies Inc, among others are some of the leading players operating in Saudi Arabia cosmetics market. Companies operating in the market are using strategies such as joint ventures, product launches, mergers, and research collaborations to boost their share and increase their geographic reach.

“High penetration of internet and proliferation of smart devices in Saudi Arabia is creating awareness about the cosmetic brands into the mind of consumers.

Saudi Arabia boasts one of the highest social media users in the region. Major brands are collaborating with famous influencers to increase the reach of their respective brands to target audience. Also, content on beauty enhancement and skincare treatment is high on demand on video networking websites which is expected to propel the market growth till 2026” said Mr. Karan Chechi, Research Director with TechSci Research, a research based Saudi Arabia management consulting firm.

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Sample Data - Snapshot

5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00

2016 2020 2021E 2026F

Saudi Arabia Cosmetics Market Size, By Value (USD Million), 2016–2026F

CAGR BY VALUE

XX%

CAGR BY VALUE

YY%

20% 20%

20%

20% 20%

20%

20% 20%

20%

20% 20%

20%

10% 10%

10%

10% 10%

10%

2 0 1 6 2 0 1 8 2 0 2 0 2 0 2 2 F 2 0 2 4 F 2 0 2 6 F

Body Care Hair Care Color Cosmetics Men's Grooming Fragrances Others

Saudi Arabia Cosmetics Market Share, By Category, By Value, 2016–2026F

20% 20%

20%

20% 20%

20%

20% 20%

20%

20% 20%

20%

20% 20%

20%

2 0 1 6 2 0 1 8 2 0 2 0 2 0 2 2 F 2 0 2 4 F 2 0 2 6 F

Departmental Stores Supermarket/Hyper Market Beauty & Cosmetics Stores

Saudi Arabia Body Care Market Share, By Distribution Channel, By Value, 2016–2026F

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Report Name: SAUDI ARABIA COSMETICS MARKET FORECAST & OPPORTUNITIES

2016 – 2026

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About Us & Disclaimer

TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’

model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.

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The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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SAUDI ARABIA COSMETICS MARKET

F O R E C A S T & O P P O R T U N I T I E S