The Beauty and Personal Care Products Market in UAE

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The Beauty and Personal Care Products Market in UAE

James Lancing

Abstract

This report intends to conduct an industry analysis on beauty and personal care product market in
UAE. Based on the discussion, it has been observed that some of the major challenges faced by
the companies in this segment of UAE are issues related to the organic beauty and dominance of
the large players. Based on the outcome of the report, some of the recommendations have also
been provided to improve the performance of the companies operating in this industry.
Table of Contents
1.0 Introduction.........................................................................................................................4

2.0 Current status of the market of beauty and personal care products in UAE.......................4

3.0 The factors contributing to the growth of beauty and personal care products in UAE.......5

4.0 Challenges faced by the beauty and personal care products in UAE..................................7

4.1 Issues with the organic beauty products market...............................................................7

4.2 Domination of the large companies..................................................................................8

4.3 Lack of standardization....................................................................................................8

5.0 Recommendations to help the market of natural beauty products in UAE 350..................8

6.0 Conclusions.........................................................................................................................9

Reference List.........................................................................................................................11

Bibliography............................................................................................................................13

1.0 Introduction
In the last 20 years, the market for beauty and personal care products has grown exponentially.
The annual growth rate of this industry ranges between 3% and 5.5% (Łopaciuk and Łoboda,
2013). The personal care products are broadly classified as cosmetics and toiletries. The market
for personal care products has depicted a more resilience in the face of economic turmoil. The
market of beauty products can be sub-divided into the five segments, namely, haircare products,
perfumes, make-up and skincare products (Łopaciuk and Łoboda, 2013). Branding is an
important market strategy in case of beauty products and allows the manufacturing companies to
extract high price (Łopaciuk and Łoboda, 2013; Hill, Jones and Schilling, 2014). According to
the industry analysis, the market for global personal care is concentrated in the US, Russia, UK,
Brazil and the European market (Webco, 2014). However, the concern associated with the use
of toxic chemical based cosmetics on health have led to the increasing demand for the organic
products. In the recent years, the market of organic personal care has experienced a steady
growth stimulated by the notion of safe hygiene and is expected to reach the $13 billion by 2018
(Global Cosmetic Industry, 2013). Estimates reveal that the market of women’s beauty product
has experienced seven times higher growth than the entire cosmetic market. Some of the factors
that testifies this high growth are increased consumer spending, smart packaging, introduction of
customised products, changes in the preferences and awareness (Webco, 2014).

This paper aims at investigating the market of beauty and personal care in the UAE (United
Arab Emirates). The researcher has analysed the growth factors of this industry in the country.
The in –depth analysis has led to the depiction of the challenges that pose a threat to the future of
personal care products in the country. Therefore, some of the recommendations have been
provided which can facilitate further growth in the concerned industry in the UAE.

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