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Fri Jul 19 2024Admin

Saudi Arabia's Beauty and Personal Care Sector: Trends, Laws, and Industry Perspectives

• The following topics are covered in this article: • Introduction; • Overview of the Saudi Beauty and Personal Care Industry; • Key Drivers of Growth in the Industry; • Compliance Guidelines for Saudi Arabian Cosmetic Businesses; • Start Business in Saudi Arabia with CIG Saudi Arabia;

Introduction

There has been a remarkable surge in the beauty and personal care industry in the Middle East and Africa (MEA) region, with Saudi Arabia emerging as a key player in this growth. The country has long been recognized for its deep appreciation of aesthetics, resulting in remarkable progress in recent times. As per a report by the Chalhoub Group, Saudi consumers have emerged as the leading spenders on beauty products in the Middle East.
In addition, Mordor Intelligence has projected that the beauty and personal care market in the MEA region could potentially reach $28.30 billion by 2028. The beauty sector in Saudi Arabia is a rapidly growing market that offers great potential for significant growth. The market is currently undergoing a significant expansion, particularly in the luxury, beauty, and fashion sectors, positioning it as one of the fastest-growing markets in the GCC.

Overview of the Saudi Beauty and Personal Care Industry

The beauty and personal care industry in Saudi Arabia covers a wide range of products and services that aim to improve personal grooming, hygiene, and aesthetics. This market encompasses a wide range of categories, including skincare, haircare, oral care, cosmetics, and fragrances. It offers a diverse selection of products, ranging from everyday essentials to luxurious items that enhance personal appearance, promote hygiene, and contribute to overall well-being.
One interesting aspect of this industry is the Personal Care e-commerce market, which specializes in selling shower and bath products, cosmetics, hygiene products, and more through online platforms. This segment showcases the increasing popularity of online shopping in the beauty and personal care industry.
Many Saudi women are actively involved in the beauty industry, particularly in the realm of makeup and fragrances. They often find inspiration for their beauty routines from various social media platforms. Eye products like eyeshadow and mascara play a crucial role in their beauty routines, with sales showing a significant increase of 71% and 83% respectively over a three-month period in 2023. In addition, there is a growing demand for halal beauty products, which shows the increasing desire of Muslim women to actively participate in society while staying true to their religious beliefs.
In terms of market size, the Beauty & Personal Care market in Saudi Arabia generated a revenue of US$5.95 billion in 2024. Projections suggest that there will be an annual growth rate of 4.22% from 2024 to 2028. In 2024, the Personal Care segment is projected to generate a market volume of US$2.67 billion, making it the largest segment within this market. In addition, it is expected that online sales will account for 18.5% of the total market revenue by 2024, highlighting the important role of e-commerce in the industry's future expansion.

Beauty and Personal Care Market Segmentation

By Product Type
  • Skincare (Facial care, body care, sun care
  • Haircare shampoo, conditioner, styling products)
  • Oral Care (toothpaste, Mouthwash, dental accessories)
  • Cosmetics (makeup, Nail care, Colour Cosmetics)
  • Fragrances (perfumes, Colognes, Body mists)
By Gender Type
  • Male
  • Female
By Distribution Channel
  • Super Markets & Hyper Markets
  • Speciality Stores
  • Online Retail
  • Others (department stores, beauty Salons, Pharmacies)
By Price Range
  • Mass Market
  • Premium & Luxury

Key Drivers of Growth in the Saudi Beauty and Personal Care Industry

The Beauty & Personal Care industry is currently witnessing remarkable growth, driven primarily by the Cosmetics and Skin Care categories. The surge in popularity can be traced back to a growing number of young consumers who are influenced by global trends, social media, and e-commerce. As a result, their daily beauty routines have become more diverse.
Youthful population:
A large portion of the population, more than half, consists of individuals under the age of 30. The younger generation, particularly Gen-Z, is playing a crucial role in driving up demand. This group of individuals has a strong inclination towards integrating a diverse selection of skincare, haircare, and makeup products into their personal grooming rituals.
E-Commerce Revolution:
The digital transformation, particularly the e-commerce and social media growth, has significantly increased the accessibility of beauty products. The industry's development is significantly influenced by the extensive selection of products, competitive pricing, and personalized shopping experiences that online platforms provide.
Influence of Social Media:
Social media has emerged as a critical factor in the shaping of consumer preferences and cosmetic trends. It significantly increases brand visibility and educates consumers about the industry by providing a platform for simple access to diverse products and trends.
Trending Natural and Organic Products:
In Saudi Arabia, there is a growing trend among consumers towards natural and organic beauty and personal care products. There has been a growing inclination towards this trend due to increased awareness about health, concerns for the environment, and a preference for products that are free from harmful chemicals.
Evolving Standards of Beauty:
The shifting landscape of societal norms and ever-changing beauty standards have a profound impact on the preferences of consumers. There is a clear and growing desire for products that enhance natural beauty, celebrate diversity, and embrace inclusivity, which mirrors the evolving nature of the beauty and personal care industry.

Compliance Guidelines for Cosmetic Businesses in Saudi Arabia

Having a deep understanding of Saudi Arabia's cosmetic regulations is crucial for companies looking to succeed in this flourishing market. Collaborating with regulatory experts and staying up-to-date with the latest requirements can assist businesses in successfully entering the market and maintaining compliance in the rapidly changing Saudi cosmetics industry.
SFDA Registration:
All cosmetic products must be registered with the Saudi Food and Drug Authority (SFDA) before they can be sold in the Saudi market. In order to complete this process, it is necessary to provide a thorough description of the product, which should include details about its formulation and safety. Complying with SFDA standards is crucial to establish a legal market presence.
Ingredient Guidelines:
Saudi regulations impose restrictions or prohibitions on specific cosmetic ingredients, primarily due to concerns regarding health risks or cultural sensitivities. It is crucial for companies to ensure that their product formulations are in line with the approved ingredient list of the SFDA. This is necessary to comply with regulations and prioritize the safety of consumers.
Labelling Standards:
In Saudi Arabia, it is mandatory for product labels to contain important information in Arabic. This includes the product name, instructions for use, and safety warnings. This requirement is in place to ensure that the labels are clear and meet the labelling standards set by SFDA.
Halal Certification:
Although not mandatory, obtaining Halal certification can enhance consumer trust and the market appeal of cosmetics in Saudi Arabia. It is important for companies to follow the guidelines set by recognized Halal certification authorities in order to comply with Islamic law standards.

Start Your Saudi Business Journey with Al CIG Saudi Arabia

Step into the thriving beauty and personal care industry of Saudi Arabia. Cig Saudi Arabia provides exceptional services that are specifically designed to address the unique obstacles you may encounter when entering the Saudi market. From the very beginning of your business registration process to ensuring that you are fully compliant with Saudi Arabia's specific regulations, CIG Saudi Arabia is here to support you every step of the way. We have a deep understanding and experience in the field, allowing us to offer valuable guidance and effective solutions for long-term success. Partner with CIG Saudi Arabia and experience the support of a reliable ally committed to helping your business flourish in the highly profitable markets of the Middle East. Get in touch with us to learn