Market Trends of Middle East And Africa Cosmetic Packaging Industry
Skincare Segment Drives Demand for Packaging Products
- The growing concern among consumers about sustainability forces product and packaging manufacturers to offer environmentally friendly products. Cosmetic packaging manufacturers are trying to cater to the environmentally conscious consumer by developing and offering innovative packaging solutions. Also, packaging manufacturers are focusing on establishing recycling facilities to reduce their carbon footprints.
- Beauty brand launches are rising across Africa and the Middle East. In March 2024, Nykaa, a prominent Indian beauty retailer, debuted its first beauty retail outlet, Nysaa, in Dubai. This significant move was made possible through a strategic partnership with the renowned Apparel Group, a leading Gulf Cooperation Council (GCC) retail giant. Nykaa has ambitious plans, eyeing 70 stores in the GCC over the next five years, with a target of securing a 7% share in the GCC's prestigious beauty market.
- The surge in beauty product launches has also driven demand for cosmetics packaging, including plastic bottles and containers, glass jars, and other primary and secondary packaging solutions. This trend underscores the importance of innovative and sustainable packaging in meeting consumer preferences and regulatory standards.
- Companies are increasingly focusing on eco-friendly materials and designs to appeal to environmentally conscious consumers. Additionally, advancements in packaging technology are enhancing product shelf life and safety, further boosting market growth. The packaging sector is thus poised to play a crucial role in the evolving beauty landscape of the Middle East and Africa.
- As reported in a January 2024 article by Signifyd, online beauty and cosmetics sales in the EMEA (Europe, Middle East, and Africa) experienced fluctuating Month-on-Month growth from June to November 2023. Starting at 5% in June, the YoY sales growth peaked at an impressive 52% in September. This surge in online sales has also driven demand for innovative and sustainable cosmetics packaging, as brands seek to enhance the consumer experience and meet environmental standards.
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Saudi Arabia to Register Significant Market Growth
- Saudi Arabia is the largest market for cosmetic products in the Middle East and Africa, owing to the increasing spending power and ability of women in the region. Saudi Arabian women spend heavily on makeup and skin care products to boost their attractiveness, desirability, and self-confidence.
- The demand for natural and ethical products is rising in Saudi Arabia, with a notable trend towards "clean beauty" across various categories. Brands like ROEN and Glow Recipe are meeting this demand, providing vegan and cruelty-free offerings that prioritize sustainable ingredients and eco-friendly packaging. While grocery retailers and health and beauty specialists have traditionally dominated domestic distribution, the region is witnessing a gradual shift towards omnichannel retail.
- In July 2024, Henkel, a prominent player in industrial and consumer products, inaugurated a state-of-the-art beauty care production facility in Riyadh. This facility manufactures a diverse array of products under the Pert brand, such as shampoos, conditioners, and other specialized items, catering to the rising demand for premium personal care products in the Middle East.
- Futhermore, This move marks a significant advancement for Henkel's Consumer Brands division with focus on bolstering its presence in Saudi Arabia and the wider region, highlighting the company's focus on local production and sustainable business practices.
- In 2023, Saudi Arabia exported beauty products worth USD 2.745 million to various countries, including Djibouti, Italy, Germany, Jordan, and Bahrain, as reported by ITC Trade Map. Additionally, Saudi Arabia imported beauty products valued at USD 511.01 million from nations such as Germany, the Netherlands, Italy, France, the United States, and the United Kingdom. This significant trade activity impacts cosmetics sales in the region, driving demand for diverse and high-quality products.
- Consequently, the cosmetics packaging market also experiences growth, as manufacturers seek innovative and attractive packaging solutions to cater to consumer preferences. The increase in imports introduces new brands and products, further stimulating competition and packaging advancements. Overall, the dynamic trade environment fosters both the cosmetics and packaging industries in Saudi Arabia.
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