Premium Beauty and Personal Care in Saudi Arabia

PRE-COVID-19 PERFORMANCE

Spending on premium brands shifts further towards local consumers

Local Saudi consumers have long been the core consumer base for premium beauty and personal care. Arabian people are known for their love of luxurious toiletries and cosmetics and thus local consumers have traditionally been the primary focus of premium brand owners in beauty and personal care.

Dermocosmetics continue to generate a higher proportion of premium sales

Towards the end of the review period, dermocosmetics continued to become more important in sales of premium beauty and personal care. Growth in the category is being supported by the increasing support of clinical dermatologists, who often recommend these products to consumers skin problems, which are often linked to the use of beauty and personal care products that contain harsh or potentially harmful components and ingredients.

E-commerce continues to emerge, presenting challenges to beauty specialists

As mentioned above, e-commerce is becoming an increasingly important distribution channel for premium beauty and personal care in Saudi Arabia. Online retailers such as Noon, Namshi, Souq, Niceonesa and Tatayab continue to record robust sales growth as they represent an increasingly attractive option for Saudi people at a time of rising living costs and an accelerating pace of life.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 7% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This very unfavourable performance can be attributed mainly to the reluctance to spend money on expensive products among consumers who face pressure on their incomes due to COVID-19.

Affected products within premium beauty and personal care

As with mass beauty and personal care, in premium beauty and personal care categories that are seen as more essential and also more useful during the pandemic situation experienced little detriment due to the arrival of COVID-19. Premium bath and shower for instance is expected to register a strong performance over the course of the year, while premium fragrances is slated for strong negative growth as these products are seen as optional.

Recovery and opportunities

The unfavourable economic situation which has emerged in the wake of COVID-19 is expected to exacerbate the generally unfavourable scenario for premium beauty and personal care in Saudi Arabia over the forecast period. Specifically, the rising cost of living which has been seen in recent years has placed considerable pressure on consumer spending, with all non-essential products experiencing slowdowns in growth or sales declines.

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