It has been a tough year for the fragrance industry in the United Arab Emirates (UAE), where competition between international and local brands has intensified, while consumer spending has weakened. But this has not stopped perfumers from launching new products, nor has it prevented overseas suppliers from expanding their local presence.
According to market researcher Euromonitor International, the UAE’s fragrance market was valued at Emirati dirham AED2.34bn (US$637.1m) in 2016, with a growth rate of 3% compared to 2015. Between 2016 and 2021, the market is expected to witness a compound annual growth rate (CAGR) of 2%, reaching AED2.5bn ($680.7m) by 2021.
Equivalent to US7.1m.
Source: Euromonitor International
“The fragrance market witnessed a weak single-digit growth in 2016 compared to the strong double-digit growth seen during the previous years,” notes Amna Abbas, Research Analyst at Euromonitor. She attributes the slowdown to the fall in oil prices since 2014, which continued to show its effects on the Emirati economy in 2016 and led to a scale-back in corporate spending. This influenced the job market and in turn, consumer demand.
“People are
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