Brazilian companies see Middle East markets as goldmine
According to industry reports published by ABIHPEC, Brazil is currently ranked as the third most important market in the world for the industry, and the number one market for perfumes and fragrances.
In 2012, beauty care in the country represented 50 per cent of total sector exports to the Middle East, and based on these findings, the Association has selected 30 Latin companies as likely candidates for successful export promotion.
"The Middle East quickly became a focus, quite apart from the success enjoyed in Dubai, which is now a main distribution hub for a number of Brazilian companies," they said.
Market is ripe
According to Euromonitor, the hair care market in Saudi Arabia and UAE combined is expected to be worth a staggering $566m by 2014, making the countries of the Arabian Gulf a key target for international hair care majors.
This is because the consumption of cosmetics for image and health enhancing products is becoming one of the top priority purchases of consumers.
“Dubai went crazy over product and price. I thought: ‘I have a goldmine here'. We stress our Brazilian roots, the beauty of Brazilian women, the Brazilian image. The thick hair of the Middle East is wavier but it need not be harder to manage,” says Alex Vasto, nuNAAT’s President.
Make-up segment also a success
Facial make-up, especially lip make-up products including lip liners, lipstick, and lip gloss are also projected to be the principal segments of this market, according to the latest report from research firm RNCOS.
“The extensive demographic spread within the UAE specifies that, the demand for cosmetics is also far flung,” they say.
The "UAE Retail Industry Forecast to 2015" report says that the UAE retail industry has been witnessing strong growth in sales over the past few years and is expected to grow in the coming years as well; immediately impacting the cosmetics industry.
Surging public and private sector consumption along with the contribution of strong industry verticals are expected to help the retail industry to grow in the coming years, says RNCOS.