The outlook for the UAE cosmetics sector looks unclear because of developments in the region as well as rising costs of life, both of which make consumers rethink their priorities, says Muhammad Al-Madi, the president of Madi International Company.
However, the cosmetics market in the United Arab Emirates grew by 6 to 7 per cent in 2014, according to Al-Madi.
Growth in the UAE’s cosmetics industry surpassed the global rate in 2014 which is estimated at 4.2 per cent, Al-Madi says in remarks published by Al-Bayan.
He adds that the value of the cosmetics industry in the country was AED3.67 billion in the past year and is projected to rise to AED4.7bn in 2017.
Al-Madi notes that one out of 10 Emirati consumers spends AED60,000 each year on cosmetics, adding that the Dubai cosmetics and beauty market has reached a glut when it comes to the number of stores.
He says that competition has become fierce with the introduction of products from Asian makers at competitive prices and the lower value of the euro, which makes European products an attraction as well.
Al-Madi indicates that cosmetics and beauty products are now being sold and distributed via a host of channels, including specialised stores, salons and pharmacies, among others.