Saudi Arabia cosmetic market is expected to grow rapidly

It is speculated that after 2020, the cosmetics market in Saudi Arabia will increase significantly, and China should make positive preparations for this. According to KOTRA Trade Center in Riyadh, Saudi Arabia, recently, due to the development of social media, products that follow the international trend and use natural materials are warmly welcomed by women. In particular, more and more consumers are buying after careful analysis of ingredients and manufacturing processes such as hair management and moisturizing products. According to Euromonitor survey results, in 2019, the size of Saudi cosmetics market is about 5.06 billion US dollars. Influenced by the decline of oil price in 2014 and the contraction of consumer economy, the market size is shrinking. In 2018, with the recovery of oil price, the cosmetics market is gradually showing a recovery trend. As a part of the Saudi vision 2030 policy, the Saudi government is promoting the expansion of women's economic activities, and plans to expand the proportion of women's activities to 30% by 2030.

At present, it has the largest scale of perfume products in Saudi Arabia's cosmetics market, and skin care products such as hair and skin care, eye, lip and hand related cosmetic products are also popular. Follow the international trend of environmental protection natural raw materials cosmetics are more and more popular, men's cosmetics market is also showing a sharp growth trend. In 2018, cosmetics imports totaled US $495.79 million, mainly from UAE, France, the United States and Germany. The import from ROK is about 6.8 million US dollars, accounting for 1.7% of the total. After the sharp increase of 50% in 2015-2016, the growth rate in 2017 decreased to 22%, and the import growth rate in 2018 picked up again to 49.6%. Among the Korean brands, the brands entering Saudi Arabia are mainly low-end and medium-end brands such as Philippine shop, skin care shop and nature park. Philippine shop has 18 physical stores in Saudi Arabia, which can be said to be a successful case of entering the market.

South Korean cosmetics brands mainly choose local people's favorite natural plant materials for product publicity, to meet the cosmetic trend of skin care, and are welcomed. In terms of channels, large-scale physical stores account for a large proportion. In 2018, offline physical stores accounted for 97.1% of the overall channel market, among which large shopping centers and supermarkets accounted for 80.1%. Although social networks are developed, the proportion of social networks in sales channels is only 2.5%. The analysis shows that this is due to the small impact of social platforms on product selection and purchase methods. People related to local enterprises said that "it is necessary to register the Saudi food and drug hall in the Saudi cosmetic market for at least six months, which needs to be well prepared. The high-end products are occupied by France, the United States and other developed countries, and it is feasible for Korean makeup to be positioned in the middle market." People concerned with KOTRA stressed that "compared with the past, Korean current's image in Saudi Arabia has been greatly improved, but compared with neighboring countries such as the United Arab Emirates, it is still in the primary stage. In order to attract young women under 30 who account for more than half of the population, product publicity should be carried out through social platform marketing."