Dubai: Fragrance retailers in the UAE said that they have recorded stronger sales this year as consumer confidence and tourist numbers grow.
The UAE’s fragrances market was valued at Dh1.4 billion in 2013, accounting for 28 per cent of the country’s beauty and personal care market, which amounts to Dh5 billion, according to Euromonitor International. The fragrances market is expected to grow by six per cent year-on-year to stand at Dh1.3 billion by 2018.
The growth is driven by consumers’ high spending power, rising visitor numbers and development in the retail sector, including more investments in the market and retailers’ development of their product ranges, according to Iyad Hijjawi, senior regional consultant for the Middle East, North America and Turkey at Euromonitor International.
Beautyworld Middle East, a three-day trade event for fragrances, hair and beauty products which opened at the Dubai International Convention and Exhibition Centre on Tuesday, saw a 15 per cent growth in the number of exhibitors showcasing fragrances over last year, according to Ahmad Pauwels, chief executive of Messe Frankfurt, the event’s organiser. The show was opened by Sami Dhaen Al Qamzi, director-general of the Dubai Department of Economic Development.
“The biggest growth we see now is in fragrances,” Pauwels said.
Marco Genovese, president of Europe-based CreaSens, an exhibitor at the show, said that demand for perfumes in the UAE is stronger than in Europe. He estimates average spend per person on perfumes to stand at “20 euros in Europe and 120 euros in the UAE.”
“Here, there is a culture of perfumes,” he said. He forecasts the value of the company’s fragrances exported to the UAE to touch 1 million euros this year, compared to 300,000 euros in 2013.
Mean Shahhit, regional export manager of Turkey-based Elso Flavor Fragrance, said that buyers in the UAE prefer European fragrance brands. As a result, the company finds it challenging to export to the country, he said.
Average spend per head on fragrances in the country stood at $135 last year, which is forecast to reach $156 by 2018, according to Euromonitor International. The UAE is expected to take the second spot globally in terms of per capita consumption of fragrances by 2018, Hijjawi said.
Currently, premium perfumes dominate the fragrances market, with a share of 81 per cent, compared to mas produced perfumes’ share of 19 per cent, according to Hijjawi.
He said that mid-market fragrance brands are becoming more popular in the UAE. However, he added that “it will not emerge as a trend in the future- it will remain very niche.”
According to him, the market for such products is led by familiar brand names, adding that they are successful for multinational companies but not local companies.
