Market Trends of Qatar Cosmetic Products Industry
Growing Demand for Natural/Organic Facial Makeup Products
Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers. This trend has resulted in a shift in preference from synthetic skincare products to organic products among consumers. To capitalize on this growing trend, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as 'organic,' 'vegan,' 'natural,' 'chemical-free,' and 'cruelty-free'. Cosmetic manufacturers are opting for natural and eco-friendly ingredients to manufacture products. The 'green cosmetics' are pushing the need for sustainable beauty products. Manufacturers are taking an interest in sustainable beauty and are using sustainable ingredients in their products.
The increasing number of working women and rising consciousness about physical appearance among millennial women across the country are the key growth drivers of the facial makeup market. Many manufacturers in the market are concentrating on natural and organic ingredients in facial makeup instead of synthetic-based ingredients due to rising consciousness among consumers and the presence of harmful chemicals linked to cancer, tumor development, and skin diseases. The market for organic cosmetic products is booming due to wellness trends and the greater availability of natural ingredients. Factors such as consumer knowledge and increasing awareness of the benefits of organic products and services through digital media and other sources, coupled with the advent of social media, are adding to the growth in the region. For instance, according to Alpen Capital and Kearney, the Qatari e-commerce market was valued at USD 3 billion in 2021, a substantial increase from the anticipated market worth of USD 2 billion from the previous year. Therefore, the growing e-commerce industry and the increasing penetration of social media are further propelling the growth of the facial makeup products market. Brands and companies are making use of Instagram and Facebook to appeal to younger audiences through their visual content, thus supporting brand advocacy through impressive, powerful channels. Beauty influencers are redefining the industry and are slowly becoming today's modern entrepreneurs, thus driving cosmetic product demand in this region.
For instance, in February 2023, Essence Cosmetics advertised itself with a campaign stating Prepare for Valentine's Day with Essence cosmetic products while PETA has recognized and verified essence cosmetics as a cruelty-free brand.
E-commerce and Supermarkets/Hypermarkets to Drive the Sales of Cosmetic Products
Increasing distribution channels for Qatari e-commerce are enticing new players to enter the sector. A recovering economy is driving the retail sector in Qatar, along with rising consumer purchasing power, increasing disposable incomes among middle-class families, and ease of access. Due to increased consumer awareness, the use of broadband and high-frequency internet services and the availability of advanced internet and smartphone infrastructure, e-commerce has become essential to conducting business. This trend significantly impacts how businesses in both the business-to-consumer and business-to-business sectors conduct their operations. E-commerce refers to a broad range of individual consumer internet payments and purchases. The rise of e-commerce has altered marketplaces, and many companies have had great success, including Amazon, as one of the biggest corporations with the greatest selling points.
The distribution of cosmetics has expanded through various mainstream channels, such as supermarkets, hypermarkets, specialist stores, and convenience stores, among which the supermarket/hypermarket segment holds the largest market share. Owing to high consumer demand, major supermarkets are expanding the range of cosmetics, representing a diversity of products. The growth observed in the supermarket segment was led by its appeal among boomers seeking for safe exploration of various cosmetic products formulated with innovative technology and packaging. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of consumers. With the increasing demand for cosmetics, supermarkets and hypermarkets, such as Carrefour, Al Meera, Lulu Express, Giant Stores, and Sidra, are witnessing fast growth in the sales of their products.
