Middle East & Africa hair care market is projected to grow at a CAGR of 7.52 % during the forecast period.
- The rise in the use of Halal products, compliant with the religious sentiments of the Islamic population in the region, is a major trend observed in the MEA market. Halal is complemented by the preference for all natural/ vegan products in, both, skin, and hair care. Also, owing to the increasing inclusion of women in the workforce, a high growth rate is expected in the MEA market for hair care.
- Owing to the significance of personal care products with rise in awareness regarding personal hygiene, for both men and women, there is an increasing demand for hair care products, further driving the market studied, in the region.
Key Market Trends
Specialty Stores Emerged as the Prominent Point of Sales
New developments across the region, expansion of existing malls, incorporation of technologies, and employment of better in-house experts are observed to initiate better customer experience. ?Brands are devising creative strategies to provide better customer service, and brands like Clarins have initiated installation of testing bars in Sephora stores, where consumers can get targeted advice and take-home samples with, no obligation to purchase. Moreover, western department stores, such as, Harvey Nichols, Galeries Lafayette, Bloomingdale’s, and House of Fraser, have entered or expanded their presence in the region, which is expected to push sales through specialty stores
South Africa Holds Great Potential
Growth of e-commerce in the country is attributed to high mobile penetration where smartphones penetration in the country rose to around 20 million in 2018 from 9 million in 2014, increasing consumer trust in online transactions, and the expansion of brick and mortar retailers into the online sphere by adopting a multi-channel approach. Moreover, key players are strengthening their presence in the region, in order to capture the growing market. For instance, in 2016, L’Or?al has established its R&D plant in Johannesburg. The facility was set to study African hair and skin specificities as well as the beauty routines and expectations of sub-Saharan consumers. The center also aimed to cooperate with the African scientific ecosystem, universities, dermatologists, natural biodiversity centers as well as hairdressers.
Competitive Landscape
The Middle East & Africa hair care market is consolidated among few companies such as Loreal SA, Proctor and Gamble, Henkel AG & Co. KGaA , and Unilever. L’Oreal held the largest market share, among others. The company currently markets its brands and several thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup, and fragrances. Players are strengthening their presence through online marketing and distribution, to increase their market penetration in the region.
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