WAM Dubai, 17th March 2011 (WAM)
Growth in demand for premium fragrances in the UAE continues unabated, with sales of high-end, signature products growing at a CAGR of 5.4 per cent. This is faster than the sales of mass-produced fragrances, making the region a prime target market for luxury perfume labels from across the world.
Recent research from Euromonitor International, official knowledge partner for Beautyworld Middle East, estimates that the market for premium fragrances will be worth AED 663.5 million by 2014 while sales of mass fragrances are expected to be worth AED 247.9 million in the same period. This is a key indicator that the UAE market has a marked preference for high end perfumes and other luxury goods.
The GCC market for fragrances is estimated at Dh11 billion ($2.99 billion) per annum accounting for approximately 20 per cent of the world market, according to a recent international study.
“The fragrance market in the UAE and the wider region remains an exciting one with tremendous potential for growth,” said Ahmed Pauwels, Chief Executive Officer of Epoc Messe Frankfurt, who organise Beautyworld Middle East, the foremost trade event in the region for beauty products, fragrances, haircare and wellness. “The average spend on premium perfume is relatively higher than in other parts of the world as fragrances and perfumes are an important part of the local lifestyle and there is a higher disposable income.” “Beautyworld Middle East, with its region-wide footprint, gives leading perfume houses and fragrance products a first-hand look at this burgeoning market. Retailers and wholesalers from the region also use the event to scout for new deals, sign up new suppliers and place purchase orders,” Pauwels added.
While the local population are big consumers of premium perfumes, another big factor driving the luxury perfume market in the region is the thriving tourism industry. Tourists account for a significant segment of the perfume market, with duty free sales at the region’s airports, mall retail outlets and other shopping locations further driving spending in this segment. Beautyworld Middle East provides an ideal platform for retailers and buyers to source new products and check out the latest market trends that are popular in the global market.
Oriental and local fragrances also have a significant presence in the region, as the markets of the GCC have traditionally been big consumers of Oud, Ittar and other native fragrances. Regional perfume houses such as Ajmal and Swiss Arabian have been making their presence felt too, with a range of exotic and designer fragrances that have moved them into the mainstream market.
Leading perfumers and fragrance manufacturers from the region are participating in Beautyworld Middle East this year.
Beautyworld Middle East 2011 will be held at the Dubai International Convention and Exhibition Centre from May 24th to 26th. In 2010, the event featured 700 international exhibitors and attracted over 16,000 international trade visitors. The exhibition is the largest international trade fair for beauty products, hair, fragrances and wellbeing in the Middle East and has played a major role in the growth and development of the industry in this region over the last fifteen years.