Posted on 24 Feb 2017
GCC Perfume Market to Reach US$ 4.27 Billion by 2025
The GCC region is one of the leading markets for perfumes and fragrance products worldwide. A new research report titled “GCC Perfume Market by Price (Premium Products and Mass Products) by Gender (Male, Female and Unisex) and Product (Arabic, French and Other): Industry Analysis, Trends, Growth and Forecast 2020-2025” by Syndicated Analytics estimates that the GCC perfume market was worth US$ 2.66 Billion in 2019. The report further anticipates the market to reach a value of US$ 4.27 Billion by 2025, at a projected CAGR of around 8% during the forecast period (2020-2025).
The market has experienced rapid growth over the past several years. Efforts have been made by the manufacturers to extend their product portfolio by launching a wide range of exclusive perfumes in innovative and designer bottles to attract a larger consumer base. They are also focusing on expanding their online presence through the establishment of e-commerce websites.
In the GCC countries, the demand for perfume has been growing among consumers with rising awareness about personal grooming. This trend has encouraged them to opt for fragrances that contain ingredients permitted under Islamic law. Consequently, the demand for halal or organic fragrances made from natural raw materials has increased across the region. Apart from this, the development of exotic fragrances with a unique blend of both traditional oils and attars, as well as western perfumes, has provided a significant boom to the market growth. Moreover, improving living standards, inflating purchasing power, advancements in technologies and ongoing promotional campaigns are some of the other significant factors encouraging consumers to spend on luxury fragrances.
However, the presence of toxic chemicals and the rising consumer awareness regarding synthetic fragrances, which are found to be unsafe, potentially drive away consumers from using these products.
Segmentation by Price:
On the basis of the price, the market has been segmented into premium and mass products. At present, premium products lead the market, as they emphasize more on quality and customization to cater to the needs of the consumers.
Segmentation by Gender:
Based on gender, unisex perfumes represent the most popular category, followed by female and male perfumes. Unisex perfumes generally include raw materials, such as sandalwood, musk, oud and amber.
Segmentation by Product:
The market has been categorized based on the product into Arabic, French and others. Arabic perfumes, which include bukhur, amber, oud and rose, currently dominate the market.
On the geographical front, Saudi Arabia holds the leading position in the GCC region as with the rising purchasing power, a large percentage of Saudi consumers are willing to purchase branded products. It is followed by the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
The GCC perfume market is characterized by fragmentation. This is due to the presence of several local and international manufacturers who compete in terms of prices. Some of the leading players operating in the industry are:
- Ajmal International Trading Co. (LLC)
- The Fragrance Kitchen
- Rasasi Perfumes Industry LLC
- Arabian Oud
- Abdul Samad Al-Qurashi Co.