NEW YORK, Sept. 21, 2021 /PRNewswire/ -- From $720.2 million in 2020, the U.A.E. fragrance market is set to witness an 8.3% CAGR between 2020 and 2030, according to the market research firm P&S Intelligence.
During the COVID-19 pandemic, the U.A.E. fragrance market was negatively affected. The production of non-essential goods was curtailed, while people were also forced inside their homes. The resulting slump in business, media & entertainment, and social activities reduced the demand for fragrances in the country.
The luxury product bifurcation is predicted to dominate the U.A.E. fragrance market in the coming years, based on type. The growing brand awareness and rising spending on luxury products by millennials will be behind the bifurcation's dominance.
In the years to come, the highest CAGR in the U.A.E. fragrance market, of 9.1%, on the basis of product, will be seen in the eau de parfum category. Due to their higher concentration of essential oils, such perfumes are stronger and longer lasting than most other types.
The synthetic bifurcation held the larger share in the U.A.E. fragrance market in the past, under segmentation by synthesis. Such variants are stronger, longer lasting, more complex, and cheaper than natural fragrances.
In the near future, the highest revenue to the U.A.E. fragrance market, under the consumer group segment, will be contributed by the unisex category. Not being targeted at any particular sex allows unisex fragrances to be used by both men and women.
Multi-brand retail stores were the largest contributor to the U.A.E. fragrance market historically, in terms of the distribution channel, a situation that will not likely change during this decade. The availability of the fragrances of different brands under a single roof makes such stores popular among the populace.
Major factors behind the rising demand for fragrances in the U.A.E. are:
Demographic Shift: Currently, almost 60% of the population of the U.A.E. falls in the age group of 14–40. This population has a significantly higher purchasing power than that in other age groups. Moreover, teens are now looking for customized perfumes that complement their personalities. Further, with people engaging increasingly in social events, they are purchasing perfumes to make an overall good impression on their peers.
Increasing Disposable Income: People's financial prosperity is also propelling the U.A.E. fragrance market as it is allowing them to purchase such products without hesitation. From $257,386.2 million in 2010, the country's disposable income rose to $299,569.0 million in 2020, according to the Census and Economic Information Center.
Dubai is the largest and fastest-growing city in the U.A.E. fragrance market on account of its status as the country's cultural and financial capital. As a result, all major multinationals have their offices here, while the city is also home to numerous performance venues.
Key players in the U.A.E. fragrance market include LVMH Moët Hennessy Louis Vuitton, The Estée Lauder Companies Inc., Coty Inc., Guccio Gucci S.p.A., Rasasi Perfumes Industry LLC, Eurofragance SLU, Yas Perfumes, Al Haramain Perfumes, The Fragrance Kitchen, Calvin Klein Inc., Ajmal Perfumes, and Arabian Oud.
The Saudi Arabian fragrance market, on the basis of synthesis, will experience the higher CAGR, of 8.5%, in the natural bifurcation. The chemicals contained in synthetic formulations can have several side-effects, which is why, with their increasing awareness, people are demanding natural and organic perfumes.
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