Beautyworld analyzes the changing face of fragrance in the Middle East

 

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The fragrance market in the Middle East is seeing strong growth and influencing olfactive trends globally, while local players are fast expanding internationally. This article explores the market’s performance and key shifts in the region. These areas will be expanded upon at two new, not-to-be-missed events at the Beautyworld Middle East show taking place in Dubai from October 27-29: The NEXT in Fragrance Conference, which brings together master perfumers, brand founders and trend forecasters for three days of high-impact dialogue and insights aimed at exploring the next chapter in fragrance and featuring a keynote from Fragrance expert Roja Dove, and Natural Notes, a showcase for natural perfume ingredients sourced from farmers worldwide and spotlighting sustainability, authenticity and innovation in the world of natural perfumery.

 

The Middle East has always been an important market for fragrance, but with the current shift in influence in beauty’s major hubs, the region is set to play an even bigger role in the category in the future.

The region is gaining more attention and investment from fragrance players, not only because of the growth of the scent category in the Gulf Cooperation Council (GCC), but also due to the rise of Middle East companies on the global stage and their increasing influence on perfume trends worldwide. Such is the expansion, that several fragrance creation houses have earmarked the United Arab Emirates (UAE) and Saudi Arabia as the growth markets of the next 20 years. In addition, industry players see doing business in the region as opening the door to the potential of the African market.

Growth prospects

Middle East distribution company Chalhoub Group put the personal luxury market in the GCC in 2024 at US$12.8bn, an increase of 6% over 2023, despite the overall decline of the sector globally. Within this, prestige beauty was the fastest-growing category, up 12% to US$2.4bn. And in beauty, fragrance claimed the largest share of the category at 49%. This makes fragrance in the region a US$1.2bn market, without including the category of local fragrance brands, which fall outside the scope of data and continue to attract consumers across price points. In the first quarter of 2025, the prestige beauty market continued to see strong growth, up 23%, driven in part by Ramadan festivities during the period.

In addition, while US and Europe are close to hitting a ceiling on high-priced fragrances, this is not the case in the Middle East. High-end scents continue to boom, which is boosting value sales.

Growth along these lines is expected for the next few years. The GCC personal luxury market is forecast to reach US$15bn by 2027 (a CAGR of 6% between 2024 and 2027), according to Chalhoub. The prestige beauty category is predicted to see a CAGR of 8% in this timeframe.

Growth will be driven by macro-economic factors, such as government initiatives like Vision 2030 in Saudia Arabia and in Qatar, and the UAE’s agenda to double GDP by 2033.

Saudi Arabia’s potential

Saudi Arabia is the fastest-growing prestige beauty market in the Middle East currently, and a focus on easing business practices and the opening up to foreign direct investment is expected to bring more opportunities to the market.

The fragrance category represents around half of the prestige beauty market in Saudi Arabia and is being fueled largely by demand for niche and artisanal scents, which appeal to Saudi consumers’ fragrance tastes and strong appetite for layering. It is thought that niche and private collections represent nearly one third of the category and are growing at 30%. Private collections and niche brands drove growth in both Saudi Arabia and the UAE in 2024, reaching 40% of the total fragrance weight. However, at the same time, lower-priced products in the SAR99 (US$26) price range are also performing well.

Overall, consumers continue to be interested in buying more fragrances suited to different occasions. “The fragrance wardrobe philosophy is reshaping how we design, launch and price our collections – offering scents tailored to every mood, moment and ritual, from casual fresh colognes to rich attars and signature home fragrances,” comments Amandine Nikuze, Vice President of Perfumery at Ajmal Perfumes. “This approach enables us to introduce flexible formats, such as minis and Tawziyat sets, which are especially well-received in markets like Saudi Arabia and perfectly suited for gifting seasons like Ramadan and Eid. More than a strategy, it’s an intuitive response to the growing demand for personalization.”

The retail landscape for prestige beauty and fragrance in Saudi Arabia has changed dramatically over the past decade. Historic players continue to scale back their operations. From a market dominated by numerous local players, Saudi Arabia has shifted to a monopoly largely dominated by Sephora (in partnership with distribution company Chalhoub), with an estimated market share of more than 50%, and standalone stores, accounting for around 20% of sales, followed by local chain Faces (Chalhoub’s retail chain), with around 17%.

With several mall projects underway, industry observers are keen to see new multi-brand retail concepts enter the market, which could represent opportunities for expanded distribution for brands. Some moves have been made in this area, with Russian retailer Golden Apple opening its first store in Saudi Arabia this year in the Red Sea Mall in Jeddah. In addition, e-commerce sales are beginning to see strong growth in the country, especially with the rise in pure players.

UAE and niche brands

In the UAE, the fragrance market continues to grow, and as in Saudi Arabia, the category has shifted towards niche brands.

Niche brands and high-end collections are being prioritized by retailers in what has become an increasingly concentrated distribution landscape. The market has become dominated by department-store distribution, with very few perfumeries; many of the mainstream retailers have disappeared. This has seen the category become more elitist and expensive, and more commercial perfumery lose share, say sources.

Retailers Sephora, Bloomingdale’s and Harvey Nichols are said to account for close to 70% of the prestige beauty market. However, the arrival of Russian chains L’Etoile and Golden Apple is expected to dynamize the market. India’s Nykaa too is looking to expand in the country.

Meanwhile, the geopolitical situation has had a major impact on tourist profiles. The conflict between Israel and Gaza has led to a decrease in Asian tourists, while there are more Russian nationals in the UAE, both as short-term tourists but also as longer-term residents, which is increasing spending. Russian consumers are also seen as big spenders on niche fragrance.

Global appeal

In addition to the buoyant domestic market, trends from the Middle East are resonating worldwide. One of the reasons for the increase in demand for long-lasting, concentrated scents is the influence of Arabic fragrances. These scents are said to be booming globally due to their technical performance and quality, and this has seen marketers look to the Middle East for future olfactive trends.

Linked to this is the strong ambition among many Arabic giants to become global brands. Lattafa for example, has seen strong success on social media, especially in the US. The company claims that its Yara brand is a top seller on TikTok Shop in the country. Dubai-based fragrance company Sterling Parfums also continues invest in building awareness internationally. The company, which has more than 25 brands with different price points for different markets, is looking to expand to new markets, including travel retail. The company is pushing its Armaf brand in particular.  Ajmal too has underlined its strategy to expand beyond the region, with a strong focus on Europe.

Meanwhile, high-end Omani brand Amouage has rapidly expanded in recent years, including in Europe and the Americas. The company’s retail sales surpassed $200m in the first half of 2025, representing 60% growth compared to the same period in 2024.

Arabian Oud also recently outlined ambitious expansion plans. The brand, which until now was mainly sold through its own stores, is looking to expand to third-party retailers, including perfumeries and department stores globally, and aims to triple its sales in the next five years.

This development has seen fragrance creation houses significantly increase their investment in the region. In April this year, IFF opened its Scent Dubai Creative Center, a 2,000m2 addition to the company’s facility in the Dubai Science Park Laboratory Complex. Symrise recently inaugurated Jardin Arabia, a fine fragrance creation hub in Dubai, while Spain’s Iberchem expanded its laboratory in Dubai from 300m2 (3,230ft2) to 1,000m2 (10,760ft2).

Reflecting the importance of the region, 100 fragrance houses—a 10% increase from 2024—now exhibit at the Beautyworld Middle East trade show. Among them, are the world’s top 10 fragrance powerhouses, including Givaudan, Symrise, Takasago, MANE, Robertet, and dsm-firmenich, as well as first-time participants like Fragranze Milano and Payan Bertrand.

In addition, fragrance professionals can access an expanded show floor, including the dedicated QUINTESSENCE area focused on niche perfumery. This year, the space will host 100 participating brands—a 50% increase compared to 2024. Notable brands exhibiting in this space include Xerjoff, Nobile 1942, Premier Peau and Bohoboco, among many others

This year’s Beautyworld Middle East show will also host two new important events devoted to better understanding the fragrance market.