In my previous article, we discussed key trends in the region. Before we delve into the second part of it, let’s first discuss the drivers as well as the restraints of the cosmetic market. These drivers are merely the nature of the population that is simultaneously causing them to adopt the trends. And conversely, the restraints are the factors that keep them from pursuing these trends even more. So let’s thoroughly go through both the drivers and restraints.
It may come as no surprise that most of the consumers of cosmetic products are Gen-Xers. These are from the population that constitutes the age group between 30 to 59 years old. The second cluster that purchases cosmetic products the most are the millennials. And according to Knoema Population Estimates and Projections, the age group between 15 and 64 years account for 60% of the total MENA population. Thus, the growth in ageing population is the first driver for the growth of the cosmetic products market across the region. Consumers prefer using skin care products to look young, with 68% of Gen-Xers using various cosmetic skin care products such as anti-aging creams and different skin care lotions daily.
As we mentioned before, the rise in disposable income is also a driver for the growth of the market. A rapidly growing economy is the reason for the rise in disposable income of the population, which in return strengthens the distribution channels such as spas and hypermarkets and caters to customers’ rising demand of cosmetic and skin care products. In GCC countries, the individuals’ average high income leads to high purchase of premium cosmetic skin care products. According to a study released in March 2016, approximately 230,000 women in Kuwait spend more than US$ 1,300 per month on cosmetic, beauty, and fitness procedures. Moreover, millennials and Gen-Xers spend a significant amount of money on the beauty segment, followed by the latest products in cosmetic skin care.
Our third driver is heavy research and developmet. The cosmetic skin care market is built on the principle of new product innovation. At Medica Group, we always invest huge capital in research and development to improve the effectiveness of our products. New product innovation, quality, and functional improvement of cosmetic skin care products have been crucial elements from day one.
Our last driver is the constant change in lifestyle. Our busy lifestyle is a major factor driving the growth of the cosmetic skin care products market across the region. People often lead a hectic and a fast paced life; as a result, they face a lot of stress. Hence, people want face creams to offer a fresh appearance and hide the signs of exhaustion on their faces.
On the other hand, lagging awareness regarding skin care products in the target population may restrict the growth of the cosmetic skin care market substantially. Although we previously stated our awareness as a key trend, there is still a need for high market penetration and promotional activities for cosmetic skin care products with a focus to educate the target population about the products.
And finally, our second and last restraint, the stringent government regulations. Though the cosmetic skin care market size is increasing at an impressive rate, there are still various regulations prohibiting the use of certain chemicals as ingredients in skin care products.