Middle East & Africa Perfume Market Outlook, 2027

Scent is an essential part of the beauty regimes of Arab men and women. Fragrances are seeing modest growth in the Middle East and Africa, albeit undermined by the economic slowdown in core markets. However, demand for perfumes in the region has grown, in accordance with an overall positive trend in personal grooming, supported by rising brand availability and awareness. Gains are dependent on economic prosperity and rising levels of discretionary income; threats to this can be expected to have a direct impact on demand, given that perfumes are non-essential. Since ancient times, the Middle Eastern countries have had a preference for perfumes and other cosmetic products. For instance, the Saudi Arabian perfume market is driven by high adoption, increased awareness, and high disposable income. The UAE is a popular destination for market participants involved in the perfume industry. High urban populations and tourism are what primarily drive the Dubai perfume market.

According to the report, "Middle East & Africa Perfume Market Outlook, 2027," published by Bonafide Research, the market is anticipated to reach USD 4.09 Billion in size by 2027. Beyond consumption, the region also has a long tradition of perfume production. For example, Taif, a city in western Saudi Arabia, is famous for the exquisite rose oil known as Taif rose (ward Taifi). To distil just one fluid ounce (28 grams) requires tens of thousands of hand-picked flowers. Unsurprisingly, this prized Arabian fragrance finds its way into many luxury perfume brands, from Givenchy to Jimmy Choo. Even the smallest bottle (12 grams) of Taif rose can cost hundreds of dollars. Whatever the future of fragrance, the UAE is well poised to play a crucial role. The regional love of perfume and incense provides an ideal grounding for exploring the emerging world of digital olfaction technology.

In the UAE and Saudi Arabia, the rising number of thriving e-commerce industries and beauty shops supports the consumption rate of perfume products in the Middle East region. Dubai Commerce City, a UAE-based e-commerce technology platform provider, has seen significant growth in e-commerce sales in Saudi Arabia in recent years. Also, increasing hygiene and grooming awareness among South African citizens are the reasons behind the growth of the African perfume market. On the other hand, the offline distribution channel generates revenue from specialty stores, hypermarkets, supermarkets, convenience stores, and clubhouse stores as well as department stores. Retail stores provide a convenient way for customers to try and test products before purchasing them. These stores' employees advise customers on products and offers based on their preferences. Vendors are selling their products through specialty stores and other retail formats, intensifying competition in the market.
For example, Anfas, Widian, and The Fragrance Kitchen have many stores in the Middle East. Similarly, Kayali Fragrance sells its products through Sephora stores. Retailers are offering a wide range of assortment, pricing, and retail strategies to stay competitive. For example, in March 2021, Yes Mall plans to build more than 100 new retail stores in Abu Dhabi. The project is expected to be completed by the end of 2022. Sellers are also adopting an online-to-offline (O2O) business strategy to increase sales from offline distribution channels. This strategy offers various benefits to buyers, such as in-store pickup of goods purchased online. Adopting these strategies will help sellers increase their market share and expand their consumer base. Such factors are expected to drive perfume sales through the offline segment in the Middle East during the forecast period.

Arabic perfumes are commonly assumed to feature some extremely unique scents. This assumption is thoroughly valid, as the Arabian fragrance-makers have traditionally been using the oils of such exotic (as to the rest of the world) plants as black iris, Ta’if roses, frankincense trees, Casablanca lilies, and Persian saffron (Dehghan par. 3). The strong demand for niche luxury perfumery sales in this region has encouraged long-established and new local perfumery brands to create new interesting perfume concepts. Saudi, Omani, and UAE perfume markets are more traditional, whereas Kuwaitis are more experimental and enjoy East meets West fragrance collaborations. Dhabi is a popular Dubai perfume brand. It is composed of pure organic perfume notes and luxuriously decorated bottles. It's designed for both males and females. Dhabi perfume is one of the greatest options for Arabs who want to appear distinctive, stylish, and wealthy.

There are many more perfume houses targeting the Middle East market with oriental creations that are manufactured abroad, such as the House of Oud, Amouroud, Xerjoff, Sospiro, Memo, Nejma, Montale, and Frederick Malle, to mention but a few. Due to current consumption rates, the Middle Eastern perfume market continues to be a highly attractive proposition. In the Middle East, perfume is an integral part of the Muslim religion. It is mentioned many times in the Koran. Muhammad says, "Women, children, and perfumers are what I like most in the world." The sacred texts evoke a paradise of sweet scents, a garden full of fragrant plants. There are even writings about women made of the "purest musk." In religion, the importance of respect for others is paramount. This respect is expressed in words and gestures. These factors are expected to drive up demand for various perfumes in the Middle East and Africa region.

Covid-19 Impacts:
COVID-19 has not just negatively impacted the fragrances and perfumes market across the world, but its impact has resulted in a generation of opportunities for many private players to emerge in the markets to cater to the inflated demand. The pandemic also had a significant impact on the Middle East and Africa. However, COVID-19 has led to a major consumer shift, as customers are no longer brand loyal in developing countries and are trying new brands in the low-stock environment. The growth of the perfume market is primarily influenced by unpredictable and continuously changing fashion trends. Thus, key market players are focusing on developing exciting, unique, and new fragrances to attract different consumer groups across the region, which is anticipated to boost the demand for perfume.

Major Companies present in the report
Moët Hennessy Louis Vuitton (LVMH), Natura & Co., L’Oreal, Estee Lauder, CHANEL, IFF, Gucci, Hermes International, Shiseido Co. Ltd., Givaudan, Coty Inc, Firmenich S.A., Capri Holdings Ltd., Symrise, PUIG, Revlon Inc., L'Occitane International SA, Wipro Consumer Care & Lighting

Considered in this report
• Geography: Middle East & Africa
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Middle East & Africa Perfume market with its value and forecast along with its segments
• Country-wise perfume market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• UAE
• South Africa
• Saudi Arabia

By Product Type
• Eau De Parfum
• Eau De Toilette
• Eau De Cologne
• Eau Fraiche
• Parfum
• Others
By End User
• Men
• Women
• Others

By Ingredient Type
• Natural
• Synthetic

By Product
• Premium
• Mass

By Distribution Channel
• Online
• Offline

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Perfume industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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