Fragrances in Middle East and Africa

Delivery

This report comes in PPT.

Key findings

Limited gains in 2019

Regional growth was flat in 2019. Declining oil prices and low consumer confidence have impacted the market negatively, with an accordant fall in discretionary spending. This was most clearly illustrated by Saudi Arabia, which saw the most significant decline in value in 2019. There were positive sales performances in South Africa, Israel and Morocco, however.

Aspirational consumers drive growth

Urban development and economic growth – albeit often volatile and prone to fluctuation – has seen demand rise over 2014-2019. Sales have been fueled by aspirational consumer purchasing behavior, particularly amongst image-conscious young urban adults. Brand awareness and product availability are rising across countries, in accordance with multinational expansion and modern retail development. 

Premium under threat in Middle East

Middle Eastern buyers tend to be the biggest spenders when it comes to luxury fragrances, owing to the strong importance attached to fragrance due to culture and tradition, although this is now under threat as economic difficulties worsen and prompt some shift to mass products.

Affordable luxury makes inroads in Africa

Affordable mass products and entry level premium brands have tended to underpin gains in Africa; major retailers typically focus on these brands, as demand for luxury brands is comparatively low.

Bleak economic prospects threaten market potential

COVID-19 stands to cause major disruption to sales in 2020 and beyond. Despite their growing popularity, fragrances are not essential products, and demand is being impacted accordingly.