Demand for beauty and personal care came under pressure in 2022 as high inflation undermined consumer spending. This flowed from the 23% devaluation of the dinar and the global supply chain crisis as higher prices led to the launch of low-quality products and a boom in the illicit trade.
Throughout 2022, Iraq’s beauty and personal care industry was being pulled in two completely different directions simultaneously as the market continued to adjust to the adverse economic conditions and the increasing preference for low-cost products among mass consumers while the expansion of the affluent middle class meant a larger consumer base for more expensive products. On the one hand, demand for illicit goods, including counterfeit brands and parallel imports of legitimate products, continued to increase across all categories as pressure on household incomes encouraged consumers to search for the cheapest options available.
Iraqi society remained mired in political turmoil throughout 2022 as none of the country’s main political parties were able to reach an agreement to form a new government following the 2021 general election. This political medical stasis fuelled a major domestic economic crisis as investors perceived a hostile investment environment, which led to a drop in investment as well as suppressed consumer spending as househo9ldf incomes came under considerable pressure.
The most important socioeconomic trends impacting Iraq’s billion personal care industries during 2022 was the increasing interest in higher-quality products. This can be seen as the result of rising income levels among middle-class Iraqi consumers, which has led them to become more focused on quality.
By the end of the review period, the issues that local distributors of beauty and personal care products have faced for many some time due to the impact of 15 years of armed conflict had largely been resolved. Nonetheless, despite the absence of internal distribution issues, importing products in pharmacies remains somewhat problematic due to there being relatively few border entries points.
Further positive sales growth is expected in Iraq’s beauty and personal care industries during the forecast period as the improving socioeconomic situation in and rising incomes combined with the greater focus on maintaining an attractive and well-groomed appearance to underpin a substantial expansion of demand. It is expected that consumer demand will shift towards more sophisticated and expensive products as consumers become more knowledgeable and begin to distinguish between the increasingly wide range of products and brands that are expected to become available.
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Understand the latest market trends and future growth opportunities for the Beauty and Personal Care industry in Iraq with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Beauty and Personal Care
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.See All of Our Definitions
This report originates from Passport, our Beauty and Personal Care research and analysis database.
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