Is the beauty industry’s future on-demand lipstick shades and high-performance makeup for everyone’s skin? It’s not easy to hit the jackpot. In the Middle East, the beauty industry has a few founders who have put their names on a label and helm successful homegrown brands, and many are trying to make the cut.

The Middle East and North Africa (MENA) beauty and personal care market is valued at over $46 billion and is expected to reach nearly $60 billion by 2025, according to a report by Euromonitor International. 

On a similar note, the Middle East and Africa (MEA) beauty and personal care products market is projected to register a CAGR of 3.88% during the forecast period of 2024-2029, noted a study by Mordor Intelligence.

The study further finds that the major factors driving the beauty and personal care products market in the MEA region include, greater exposure to media and social media influences consumer interest in personal grooming, as well as growth of modern retail channels like malls and online platforms improves product accessibility.

However, cultural differences, local weather conditions, tailoring assortment to suit the specific needs and preferences of customers, and stiff competition from international brands hold the local beauty industry back.

Additionally, the region’s beauty standards and preferences vary from other countries, so products and marketing must be tailored to local tastes. 

“The hot, dry climate requires hydration and sun protection products. The competitive market with local and international brands demands unique selling points to stand out,” says Sara Al Rashed, founder of Saudi label Asteri Beauty.

According to Ahmed Wagih, General Manager of the Consumer Products Division at Loreal Middle East, the region is large and versatile, with a population that varies widely in cultures and habits. “These particularities significantly impact the beauty industry, as consumers across the Middle East have different needs.” 

For example, more than 88% of the UAE population is expats, while locals make up less than 12%. In Saudi Arabia, over 50% of the population is below 35. These are just two examples illustrating the challenges of localized solutions within the Middle East region. 

A combination of factors are at play, but there is a stand-out solution in pushing homegrown brands past their potential.

ACHIEVING LOCALIZATION

Localization helps tackle these obstacles, adjusting products, marketing, packaging, and retail strategies to fit local needs and preferences. Experts say brands can address such concerns by understanding local customs and engaging with consumers via social media platforms. 

“More local brands are in the market, and some are growing very quickly. Arabic fragrances, for example, dominate the fragrance market, offering oud and amber as specific local ingredients. Organic skincare and haircare are also experiencing rapid growth, with clean, organic local brands expanding,” says Wagih.

Although there’s steady growth, local beauty brands struggle against competition from international brands with strong brand recognition and marketing power. Many prefer these well-known global brands over local alternatives, limiting homegrown beauty companies’ growth.

The lack of local manufacturing infrastructure is also a hindrance, increasing production costs and complicating logistics. 

Amina Mango, founder and CEO of Jordanian skincare brand Amina’s Natural Skincare, says, “Building a beauty skincare brand is extremely complex and challenging. Surviving in the long term requires a strong brand identity, where the founder drives the brand’s vision, serves a purpose with which the consumer connects, and has the finance to support the journey.”   

Even though the region has a growing venture capital ecosystem, Mango says not enough of it is going to beauty brands that manufacture its own product needs.

Experts say the government should promote the local industry and help foster and sustain its growth. Prioritizing localization can be done by partnering with local businesses, suppliers, and agencies, says Wagih. 

“We develop bespoke marketing campaigns, utilize local and regional spokespersons relatable to our audiences, and celebrate key local moments with tailored campaigns, with Ramadan being the most important occasion of the year for our brands.”

TECHNOLOGY AND INNOVATION

Technology and innovation play an important role in the local beauty industry by enhancing its competitiveness and fostering sustainable practices. 

Innovative product development, driven by local research and development, allows brands to create formulations tailored to regional needs, such as products suited for the Middle East’s hot, dry climate.

Al Rashed says that technology enables brands to effectively understand consumer preferences and trends to tailor their offerings.

Technology and innovation can also enable brands to develop high-quality products that cater to diverse skin types and preferences.

This includes facilitating the extraction and preservation of local natural ingredients, aligning with the clean and green beauty trend. 

However, Mango says that finding local expertise to work on extractions and formulations of local ingredients remains a constant challenge that needs to be addressed.

Moreover, investment in modern manufacturing facilities, such as eco-factories, enhances production efficiency and product quality. Automated processes and machinery ensure consistency and scalability while maintaining sustainability.

LOCAL BEAUTY TRENDS

The beauty trends in the Middle East region are dynamic, reflecting a blend of traditional practices, cultural influences, and global innovations focusing on quality, luxury, and sustainability. 

The definition and standard of beauty has experienced a shift in the Middle Eastern consumers’ mind. A report by Chalhoub Group showed that consumers do not see the Western beauty beauty standard as the ideal definition of beauty any longer, viewing “Arabic beauty” as ideal instead. 

Consumers in the region look for products that amplify their natural beauty, and local beauty brands need to do just the trick. 

“The focus is on achieving a flawless complexion with face products that offer long-lasting wear,” says Al Rashed. “Blush has become increasingly popular, adding a vibrant, healthy glow to the cheeks, complementing the region’s preference for a luminous and polished look. Eye makeup remains a significant trend, with dramatic eyeliners and voluminous mascaras.”

“There is a growing emphasis on both bold and natural beauty, with an increasing interest in products that align with ethical standards and local trends,” she adds.

Skincare products are highly sought after, particularly those offering protection against the Middle East’s harsh sun and dry climate. 

Perfumes and fragrances remain a significant part of the beauty market, deeply rooted in the region’s cultural heritage. 

“Consumers in the region seek brands that align with their values, emphasizing quality, authenticity, and cultural respect. This alignment is crucial for building brand loyalty and trust. Brands that adapt their offerings to meet these international or local preferences are more likely to resonate with the consumers here,” says Wagih. 

Consumers are increasingly looking for products tailored to their specific needs, whether it’s customized skincare regimens or personalized makeup shades. 

Natural and organic beauty has specifically witnessed increased demand, whereby preference for clean beauty and locally sourced ingredients are valued for their natural benefits and cultural significance. 

There’s a rising demand for halal-certified beauty products.

Experts agree that there is ample room for local brands to grow, especially when they resonate with their local demographic. As consumer demand for diverse and authentic beauty products grows, local brands will likely play a larger role in the market, offering fresh alternatives to established international names.

“This is not a trend, but rather a shift in perspective with the personal values defining the demand and choices,” says Mango.