DOHA: The combined value of fragrance market of the Middle East and African (MEA) region in 2015 stood at $5.2bn (about QR19bn) in 2015, up 7 percent compared to 2014 figure, according to a London-based market research firm.
Analysts from ‘Euromonitor International’ (EMI), say that the MEA region will be second only to Latin America in the global fragrance growth market, accounting for 31 percent of the estimated $5.8bn (about QR21.12bn) value increase from 2014-2019.
The lacklustre growth in the West coupled with a slowdown in China and Russia means global fragrance houses are training their sights on the Middle East and Africa, with 12 of the world’s top 18 ready to line-up at the upcoming ‘Beautyworld Middle East 2016’ event to be held in Dubai in May.
The market is led by Saudi Arabia ($1.7bn) and the UAE ($423m). Absolute growth for the entire region from 2014-2019 will value $1.8bn, growing at a compound annual growth rate of 6.5 per cent, according to EMI.
Compare that to the tepid prospects in North America and Western Europe, which both have anticipated annual growth rates of 1 percent over 2014-2019, and it’s not surprising the world’s premier fragrance-related exhibitors are eagerly awaiting the Dubai trade show.
Taking place from May 15 to May 17, at the Dubai International Convention and Exhibition Centre, the three-day event will host more than 200 companies specialising in the creation, development and production of unique compound fragrances, oils, and perfumes. That includes twelve of the world’s top 18 fragrance creation houses: Givaudan, Mane, Robertet, CPL Aromas, Iberchem, Eurofragance, Cosmo International Fragrances, Expressions Parfumees, Fragrance Resources, Parfex, Technico Flor, and LUZI.
Many of these, including French-headquartered perfumeries such as Mane, Robertet, Expressions Parfumees, and Technico Flor, recently set up bases in the UAE to better serve the insatiable Middle East appetite for fragrances used in a variety of beauty and wellness products, from perfumes, soaps and deodorants, to cosmetics, oils, and shampoos.
Others went a step further; Spanish company Eurofragance, which is exhibiting at Beautyworld Middle East for the seventh time, last year established an Dh10m 10,000sqft creative centre in Dubai to create fresh fragrances that encapsulate the essence of the Middle East. Earlier this year, the company also invested in an Dh3m automatic fragrance compounder.
Sheikh Zaman, Eurofragance’s Country Manager, said the Middle East represents nearly 60 percent of its global business volume: “We currently have two production centres and four creative centres in Barcelona, Mexico City, Dubai, and most recently, in Singapore.”
“Most of our customers are based here so it’s a very important and strategic market for us. In the Middle East, male or females enjoy fragrance because here, more than anywhere else, fragrances are very much a part of our everyday lives, and essentially represent an extension of our lifestyles,” added Zaman.
The show’s footprint covers not only the Middle East, but extends across North and East Africa, the Levant, Central Asia, South and Southeast Asia, making it a key networking and sourcing platform for the beauty and wellness industries. In 2015, Beautyworld Middle East featured 1,441 exhibitors from 60 countries, and attracted 29,670 trade visitors from 120 countries, with more than half of the visitors coming from outside of the UAE.
