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Transcript
The Middle East and Turkey show many common trends in terms of consumer behaviour,
preferences and habits in beauty and personal care. Socioeconomic factors and cultural proximity
often underpin similar industrial trends, although country-specific differences are prominent.
Political and economic instability in the region represents a significant threat to sustainable
growth opportunities.
What is driving many of the beauty trends in Turkey and the Middle East is a young, dynamic
population. Social media savvy and open to new ideas, young people in these countries are
becoming more aware of global brands than they have been in the past. As such, the internet and
social media sites have become important tools for learning about and purchasing beauty and
personal care products.
Beauty and Personal Care Growth Prospects – 2014-2019
Source: Euromonitor International
In fact, online retailing recorded a 27% CAGR between 2019-2014 in the Middle East and Africa
region and a 32% CAGR in Turkey, as more consumers feel comfortable with purchasing
products online – something about which there was initially a great deal of scepticism. Not
surprisingly, online marketing campaigns are becoming increasingly important, and most
multinational companies have set up pan-Arab company websites and brand-specific Facebook
accounts and Twitter profiles to address local tastes.
There is also the proliferation of more “sophisticated” beauty products, which are driving
segmentation in a multitude of beauty and personal care categories, with products increasingly
offering more specialised and tailored solutions. New products and ingredients used in such
products in one category are also increasingly being emulated in claims made in other categories,
like hair care and skin care.
Diverse market conditions call for finely tuned strategies in the region
In the Middle East and Africa region, there is a strong dichotomy between those nations that can
enjoy more premium products and those looking for value-added, multifunctional products for
cash- and time-strapped consumers. For example, the United Arab Emirates is witnessing a
premiumisation trend within beauty and personal care, as consumers are increasingly looking for
products designed to tackle specific problems or offer clearly defined benefits. From saloninspired hair care to skin care products offering anti-ageing benefits and oral care with whitening
effects, the industry is increasingly moving towards a concept of solution-orientated products,
which usually feature a higher unit price than standard versions. Equally, in Saudi Arabia,
consumers continued to focus more on style and personal wellbeing when choosing beauty and
personal care products. This is especially noticeable in the consumer trend of preferring new
products, such as shower gels and bath products, rather than traditional bar soaps.
However, in countries such as Egypt, the majority of the Egyptian population originates from
low-income households, and spending on non-essential products has become quite limited. In
Turkey, some new products took into account changing consumer lifestyles as a result of
urbanisation, like time spent at home (as opposed to time spent at work) or the lack of time
individuals in urban settings increasingly have. And, although consumers might end up
gravitating towards lower-priced products, the quantity they consume does not go down.
One country not often associated with high cosmetic usage is Iran. However, it has fairly high
per capita consumption among its female inhabitants, primarily due to certain key factors. For
example, it has a very young female population. Another important reason for the popularity of
cosmetics is the hijab law, as women are not allowed to go out in public without wearing this
garment. As it covers their hair and chest, they look to cosmetics as a means of beautification,
particularly important to young women. However, although women start wearing cosmetics at an
early age, their income is limited, making mass cosmetics more popular in the country than
premium products.
Colour cosmetics and men’s grooming offer strong regional prospects
In the Middle East and Turkey, most growth opportunities lie in the more developed countries,
such as Saudi Arabia and the United Arab Emirates, where the population is often young and
increasingly interested in fashionable new products. Heavy marketing campaigns and expanding
distribution channels have created a strong demand for products that used to be outside the usage
portfolio. This signals an opportunity for brands to fulfil specific needs, and meet the
expectations of certain consumer segments as a key differentiator.
For example, in Saudi Arabia, men’s grooming experienced 13% year-on-year value growth in
line with a number of trends in 2014. One of the most important of these trends is expected to be
the diminishing of the former social taboo for Saudi Arabian men to take pride in their
appearance and its connection to a reduced level of masculinity.
Equally, Iran offers some growth opportunities in colour cosmetics. With the hijab law, the face
is extremely important. Iranian women tend to enjoy wearing colour cosmetics with warm and
vivid colours. Mass products usually address this demand, often offering a wider range than is
currently available among premium brands.
Skin whitening products are increasingly sought after and whitening products have spread to
many skin care categories, including men’s grooming. The demand for these products is
primarily driven by Arab, South Asian and East Asian expatriates, as lighter skin tones within
these communities are often considered more beautiful than darker skin tones.
Demand for Halal-certified beauty products on the rise
Halal beauty and personal care is in its very early stages of growth; however, it has great
potential to develop as a key point of differentiation for brands across the globe. One problem is
that the market for beauty and personal care currently lacks a standardised approach in reference
to halal, as some countries have their own certification board, while others do not. Consumers
are therefore left to decide which products are suitable to deliver the standards and values sought
after as a Muslim. Looking for products that match Islamic standards, Muslims often turn
towards organic product portfolios, as many companies in this segment offer vegan choices,
assuring that no animal derivatives are used.
Therefore, increasing availability and extended portfolios of clearly labelled halal products can
raise awareness among Muslim consumers, cater to existing demands, ease buying decisions and
ensure that not only the ingredients, but also the manufacturing process, the supply chain and the
financial services used, adhere to standards based on Islamic values and guiding.
Niche categories intensify growth in Turkey
In Turkey, new product launches like L’Oréal Turkiye Kozmetik’s Maybelline Colossal Kajal
Eye Liner were immensely popular and led to strong growth. Other eye make-up also attracted
high levels of growth due to new innovative product launches for the eyebrow region, in the
form of new eyebrow powder and eyebrow pencil products by Erkul Dagitim Pazarlama’s brand
Golden Rose, and a line of products by Kosan Kozmetik’s brand Flormar, including eyebrow
shadow, eyebrow primer, eyebrow fixator mascara and eyebrow liner.
Multinationals dominate the region’s competitive landscape, except in Iran
It is global companies that dominate the beauty and personal care market in the Middle East and
Turkey. For example, in the United Arab Emirates, Unilever and Procter & Gamble lead. In
Saudi Arabia, aside from Arabian Oud’s strong lead in fragrances, the remaining key players in
the market (2014) remain multinationals, which offer a wide range of well-advertised and welldistributed global brands. The majority of these players focus on mass beauty and personal care
products, such as Binzagr Lever (Unilever Arabia) and Procter & Gamble Arabia. Equally, in
Turkey and Israel, the beauty and personal care market continued to be dominated by
multinational companies. However, in Iran, the situation is slightly different. Domestic suppliers
like Paxan Co and Pakshoo Co are more active in basic products like bar soap and shampoos,
while multinationals prefer to expand their presence in more modern categories like skin care,
where competition from cheap domestic brands is less intense and potential for growth is more
obvious.
Socioeconomic factors and a young consumer base in the Middle East and Turkey offer positive
growth prospects, although the diversity of the region calls for focused strategies, while the
political instability poses a major threat for long-term growth.