THE MENA BEAUTY BOOM: WHY THE MIDDLE EAST IS THE INDUSTRY’S NEXT GLOBAL POWERHOUSE

The beauty industry in the Middle East and North Africa (MENA) region is on an unprecedented growth trajectory, establishing itself as a key player in the global market. Currently valued at over $46 billion, the MENA beauty and personal care sector is projected to reach $60 billion by the end of 2025 — a staggering Compound Annual Growth Rate (CAGR) of 12%, the highest globally, according to BeautyMatter’s latest report.

This phenomenal expansion reflects not only the region’s deep-rooted cultural affinity for beauty but also its evolving modern landscape, driven by economic resilience and a forward-thinking, youthful demographic. As international brands and homegrown innovators alike set their sights on this flourishing market, it’s clear that the MENA region’s influence on global beauty is only just beginning.

A Tradition of Beauty, Reimagined for the Future

The Middle East has often been considered the birthplace of beauty, with rituals and products tracing back thousands of years. Everyday essentials in global beauty — from kohl eyeliner to rosewater and scented oils — originated in this region and continue to shape contemporary beauty routines worldwide. Recently, archaeologists in Iran discovered what is believed to be the world’s oldest lipstick, a red paste estimated to be nearly 4,000 years old, underscoring the region’s historical significance in beauty.

But while tradition remains a touchstone, today’s MENA beauty market is far from rooted in the past. Instead, it’s soaring to stratospheric new heights, propelled by innovation, cultural evolution, and a consumer base that combines reverence for heritage with an appetite for modernity.

The Youth Factor: Powering Beauty’s Exponential Growth

One of the most compelling drivers of MENA’s beauty boom is its youthful population. With over 55% of the region’s inhabitants under the age of 30, this digitally connected and trend-savvy demographic represents an enormous market opportunity. Countries like Saudi Arabia and the UAE lead global consumer spending on makeup and skincare, and the region’s younger consumers are pushing demand for cutting-edge products and brands that align with their values.

This generation’s influence also extends to the types of products gaining traction. Sustainability, affordability, and innovation are high on the priority list for Gen Z consumers, who are increasingly drawn to clean beauty, hybrid skincare-makeup products, and brands championing eco-consciousness. According to the BeautyMatter report, 41% of UAE consumers and 36.5% of Saudi Arabian consumers prefer products that support sustainable living — a demand that forward-thinking beauty brands are quickly moving to meet.

The Rise of Local Champions and Global Giants

The MENA region is not just a lucrative market for international players — it’s also home to a thriving ecosystem of local beauty brands making waves on the global stage. Dubai-based Huda Beauty, founded by Huda Kattan, stands as a prime example, having built a worldwide following with over 54 million social media followers and a reputation for bold, high-quality products. Recently, the brand’s fragrance line KAYALI was sold to co-founder Mona Kattan and private equity firm General Atlantic, allowing Huda Beauty to regain full ownership and focus on its core business.

Luxury fragrance house Amouage, rooted in Oman’s rich olfactory tradition, has also gained international acclaim, blending Middle Eastern heritage with contemporary perfumery techniques.

On the international front, beauty giants are doubling down on their MENA investments. L’Oréal reported a robust 2.8% increase in Q3 2024 sales, driven largely by its Middle Eastern performance and the popularity of luxury fragrances from brands like Yves Saint Laurent and Valentino. Meanwhile, in November 2024 Sephora made headlines with the launch of its immersive beauty festival, SEPHORiA, in Dubai — an event that attracted over 6,000 beauty enthusiasts and showcased interactive brand activations tailored to the region’s love for experiential retail.

Brick-and-Mortar Reigns Supreme

While e-commerce has transformed beauty shopping in many parts of the world, the MENA region remains an outlier where physical retail continues to dominate. This preference for in-person shopping can be traced back to the traditional souqs, where marketplaces served as social hubs. Today’s modern malls serve a similar purpose, offering consumers not just products but community and experience.

Karl Sharro, a Lebanese-Iraqi architect, draws a compelling parallel between the historical souq and the contemporary shopping mall, describing the latter as a space where retail intertwines with social interaction. This enduring cultural tradition makes experiential brick-and-mortar retail essential for any beauty brand looking to make an impact in the Middle East.

Strategic Insights for Beauty Brands Eyeing MENA Expansion

For brands seeking success in the MENA beauty market, understanding the region’s cultural nuances and evolving consumer behaviours is key. Here are some essential takeaways:

1. Honour Heritage and Innovation: Embrace the region’s rich beauty traditions while introducing modern, innovative products tailored to evolving tastes.

2. Cater to Youthful Consumers: Prioritise affordability, sustainability, and product innovation to appeal to the high-spending, trend-driven Gen Z demographic.

3. Invest in Experiential Retail: Double down on brick-and-mortar presence by offering engaging, immersive in-store experiences.

4. Leverage Digital Influence: With the region’s consumers highly active on social media, strategic digital marketing and influencer collaborations are crucial.

5. Champion Diversity and Inclusion: The MENA region’s diverse population demands beauty products that cater to a wide spectrum of skin types and tones. Brands that prioritise representation and inclusivity will resonate more deeply with local consumers.

6. Tap Into the Men’s Grooming Boom: Men’s beauty and grooming is an increasingly important segment in the region, driven by cultural norms and a rising interest in self-care. From skincare to fragrances and beard care, brands expanding into men’s beauty will find a ready and growing market.

As the MENA region’s beauty industry continues its rapid ascent, brands that engage with cultural authenticity, innovation, and a commitment to sustainability will find themselves well-positioned to thrive. This is not just a moment of growth — it’s the dawn of a new global beauty powerhouse.