Unpacking the Gulf’s high-spend beauty market

This article is part of our Advanced Membership package. To enjoy unlimited access to The Long View from Vogue Business, The Fashion Exec's Guide and bi-monthly Market Insights Reports, sign up for Advanced Membership here. The Middle East is known for its high-volume spending on beauty, but a new report commissioned by the organisers of Dubai-based trade fair Beautyworld shows it is a market that cannot be stereotyped. This presents an opportunity for brands. “Attitudes toward beauty are changing, with regional consumers becoming increasingly influenced by other cultures, styles and ideas. However, the region retains a strong sense of tradition,” says Julia Uherek, VP of consumer goods fairs at Messe Frankfurt, which owns Beautyworld Middle East, taking place this year from 28 to 30 October. The Middle East and North Africa (MENA) markets are currently valued at a combined $46 billion and are expected to reach $60 billion by 2025, according to figures from Euromonitor, cited in the report — with countries in the Gulf at the forefront of growth. (The Gulf Cooperation Council, or GCC, is a subset of the Middle East, which includes the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain and Qatar, and is known to be the primary driver of economic growth and innovation within the region.) Behind this growth is a long tradition of beauty rituals; many women in the Gulf take pride in grooming as part of their daily routine. The 80-page report, titled ‘2024: Middle East Beauty Market Report: Past, Present, Future’, was put together by industry intelligence platform BeautyMatter, based on eight months of market research and more than 100 conversations with regional professionals. It debunks many misconceptions surrounding the market. “The key point to take away is that the Middle East’s female beauty market is in no way limited or diluted by the region’s preference for modest fashion,” says Uherek. “Consumers want products that help to highlight their uniqueness, so personalised products work very well in this region.” Skincare is the fastest-growing category in the GCC, the report found. “Skincare is rapidly growing but remains underpenetrated compared to makeup, which is more mature and has a larger market size — over 2.5 times that of skincare,” says Jasmina Banda, chief strategy officer of Chalhoub Group (which has a portfolio of several owned brands and partners with over 300 international labels). Hybrid products that combine skincare and makeup represent a gap in the market, she says. “Makeup remains one of the highest-spending categories, with consumers in the region spending an average of $78 per month. Top product categories include lipstick (81 per cent), foundation (71 per cent) and mascara (69 per cent), with shopping primarily done through beauty specialty stores and websites.” She adds: “While skincare is gaining momentum, makeup remains vital in the region. A notable opportunity lies in hybrid products that blend skincare benefits with colour cosmetics, making both categories highly relevant as consumers seek multi-functional solutions.” Dubai: The gatekeeper of beauty While Messe is holding Beautyworld in Dubai this month, it also organises an annual show in Riyadh: Beautyworld Saudi Arabia, which is licensed to 1st Arabia Tradeshows & Conferences. The next edition will be held in April. These are the two markets that global beauty brands have their eyes on. When it comes to making that first mark in the region, Dubai — also considered the fashion capital of the Middle East — remains the preferred entry point. “The UAE is an accessible point of entry for global brands due to the size of its expat community and English-speaking population,” says Uherek. “Dubai, in particular, has firmly established itself as a gateway to the MENA region, as well as a natural point of connection between the East and the West. International brands that test the market and succeed in Dubai and the wider UAE often find it easier to expand into other MENA markets.” Banda agrees: “The UAE, particularly Dubai, is often the starting point for brands entering the GCC, thanks to its diverse consumer base and its role as a retail hub. The UAE makes up 40 per cent of the GCC’s luxury beauty sector, providing a solid platform for testing new products and refining market positioning. Many brands launch here due to their mix of local and expatriate consumers.” It is also the country with the most organised retail sector and where most of the top influencers reside. Beauty brands are also carefully watching Saudi Arabia, which is now allowing direct investments and undergoing a transformation to become a hub for tourism, retail and healthcare under its Vision 2030 strategy. With 63 per cent of its population aged under 30, according to the 2023 census, it is a region where influencer strategy plays a key role. “Saudi Arabia’s younger population and retail expansion offer significant potential for brands to scale their operations and tap into a market eager for new beauty experiences,” says Banda. “It is also the biggest market for mass and masstige brands, so brands with such positioning could consider it a priority.” US-based clean beauty makeup and skincare brand Kosas, for example, has entered the Gulf through Sephora stores. “We will be focusing on all the countries, but the UAE and Saudi Arabia will certainly be our largest markets,” says Kosas founder Sheena Zadeh. The approach involves leveraging Sephora’s strong presence and growing demand for clean beauty. The launch will be supported by tailored marketing and a robust influencer engagement plan, Zadeh says. Brands should keep in mind that each Gulf country has its own regulations for entry and unique market nuances. While Kuwait has been known as the Gulf’s most experimental market, Qatar is witnessing a shift in attitudes towards cleaner products. “Qatar, for example, is currently experiencing growing demand for organic and natural beauty products that are free from harmful chemicals and developed using sustainable practices,” says Uherek. “Customers often shop in groups and enjoy spending time in stores trying things out and discussing their purchases,” notes Chalhoub’s Banda. This is why many boutiques and retailers have created lounge areas and VIP rooms to offer an atmosphere of privacy and relaxation, with purchases often happening afterwards. “While online shopping is growing rapidly and outperforming brick-and-mortar, culturally, customers still prefer in-store shopping over online.” The clean beauty opportunity The GCC’s clean beauty industry is projected to reach $2.6 billion by 2025, according to Euromonitor. Some 38 per cent of consumers said they prioritise natural ingredients over cost, and 28 per cent claimed to prioritise this over proven efficacy, according to Euromonitor’s 2022 survey. A similar trend was noted in the BeautyMatter report. “Clean beauty has the potential to thrive indefinitely. This aligns with the regional shift towards more conscious consumerism,” says Uherek. “Clean beauty doesn’t just mean environmental sustainability; it refers to products that are safe for use and free from toxic ingredients and harsh chemicals.” This might surprise some, given that the Gulf region is also known for its love of aesthetic procedures; in Dubai alone, the report finds that there are 47 plastic surgeons per million residents, one of the highest concentrations globally. “There is certainly an availability of treatments,” says BeautyMatter founder and CEO Kelly Kovack. “[However] such treatments are usually one-off or annual, while skincare is a daily task at home. Clean beauty products are gaining popularity in the skincare space and are complementary to any potential treatments. In fact, when consumers invest in such treatments for their skin, they tend to pay closer attention to the products they are using.” The added advantage of clean beauty products is that they are often Halal by nature, making them more appealing to Muslim consumers. Earlier this month, US-based clean beauty brand Saie made its debut in Sephora outlets across the Gulf, launching in six countries and 40 locations, including the UAE, Kuwait, Bahrain, Oman, Saudi Arabia and Qatar. “We chose to launch here as our first brick-and-mortar location outside of Sephora North America because this region was one of the top two most-requested destinations by our community,” says founder and CEO Laney Crowell. “Our immediate focus is on increasing our awareness and visibility within the region.” As Saie celebrates its fifth anniversary, the brand is on track to achieve $100 million in retail sales this year. The rise of homegrown brands Historically, customers in the Gulf were known for their penchant for Western brands. Today, the market is becoming increasingly diverse. Banda notes that the Gulf is responding to brands from Asian countries, especially those from Korea. Several South Asian brands have entered the market, including Estée Lauder-backed ayurvedic brands Forest Essentials (which launched in the Gulf last year with stores in Dubai and Kuwait, with Bahrain opening shortly). “A key trend is the rising popularity of Asian beauty products, namely Korean, with both global and smaller derma brands gaining traction through partnerships with beauty chains,” she says. This openness to global beauty brands is a sign of a new maturity in the market. Meanwhile, homegrown brands are gaining global recognition, such as Dubai-based Huda Beauty, which is sold across retailers in the UK, the US, India and Hong Kong, among others, as well as rising Saudi brand Asteri, which is becoming known for its clean beauty approach and formulas adapted to the local climate. Launched in 2023, Asteri operates through a direct-to-consumer model and has four standalone stores in Saudi Arabia already and another in Kuwait. It delivers worldwide through its e-commerce and finds that customers in the wider GCC and UK resonate with the brand. Asteri founder Sara Al-Rashed calls her brand a “love letter to the women of the region”. “There is a clear message for international brands that customers are supporting, recognising and feeling a deep connection with certain homegrown brands,” says Banda. “Homegrown brands understand the cultural nuances, giving them an advantage.” The BeautyMatter report underscores that brands need to view the Gulf as a dynamic centre of beauty that is diverse and multi-faceted. Key takeaway: There are many preconceptions about the way people in Gulf countries shop for beauty. However, the latest research highlights how attitudes are changing. The ‘skinifcation’ of makeup is a growing opportunity, as is clean beauty. Brands should keep in mind that each Gulf country has its own nuances, and while the UAE is still an important gateway to the Middle East, countries like Saudi Arabia are on the watchlist. To receive the Vogue Business newsletter, sign up here. Comments, questions or feedback? 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