The Middle East and Africa Cosmetic Packaging Market is estimated to grow at a CAGR of about 4.6% over the forecast period 2020 to 2025. The cosmetic packaging market is driven by the proliferation in demand for cosmetic products, primarily due to increasing spending powers in the region, including Saudi Arabia and the United Arab Emirates, among others. Additionally, certain factors, such as the youthful population, increasing product availability, and increasing consumer awareness in the countries, are expected to play a significant role in the market's growth.
- Saudi Arabia has depicted one of the highest rates of cosmetics consumption in the MEA region and is also dominating the consumption of skin and hair care products. Consumers in Saudi Arabia are inclined to spend large sums on their appearance, which is expected to supplement the cosmetic industry; hence, in-turn increasing the demand for cosmetic packaging in the region.
- Also, the increasing adoption of cosmetics due to the increase in disposable income in the region is further expected to stimulate the value of these products' aesthetic value. Also, the increasing penetration of social media and e-commerce websites in the country proliferates the demand for cosmetic products, hence, stimulating the adoption of cosmetic packaging products.
- Further, the cosmetics industry in the region is gradually stepping up to combat excess packaging's major problem. Multiple brands are becoming more aware of the damage caused by the usage of single-use plastic. Eco-friendly beauty brands are now letting the users refill their empty shampoo and perfume bottles, such as Le Labo's hand-blended fragrances and cult-favorite Santal 33. The product is bottled in a clear glass jar with pared-back labels. The product comes packaged in a recyclable cardboard box. The brand is also offering an in-store service that enables its users to refill their empty fragrance bottle for a maximum discount of up to 20%.
- Moreover, in Mar 2020, the Environment Agency of Abu Dhabi (EAD), the largest environmental regulator in the Middle East, announced that it aims to eliminate avoidable single-use plastic usage non-plastic materials by the year 2021 by fostering a culture of recycling and re-use. These initiatives by the government are expected to affect the market significantly.
- The recent outbreak of coronavirus has affected the market causing major supply chain disruptions. However, initiatives led by multiples companies coupled with the increasing government political commitments and investments aligning to the initiative such as Saudi Vision 2030 are expected to drive the market. For instance, in Mar 2020, the Riyadh Municipality distributed free sanitation products across the city as part of their ongoing efforts to contain the coronavirus outbreak. The government officials will be handing out the products at traffic lights and in several mosques around the city. With the approval of the Saudi Food and Drug Authority, the municipality announced that it had increased the production of sanitizers and disinfectants.
Key Market Trends
Sustainable Packaging to Drive the Market Growth
- The growing packaging industry, in terms of availability of sustainable packaging solutions in the region, is expected to, in turn, boost the cosmetic packaging market. For instance, In July 2019, Agthia Group inaugurated a new packaging technology center to develop sustainable packaging technologies in Al Ain, United Arab Emirates (UAE). Such initiatives help companies minimize waste in the region with its environmental-friendly formulae and ingredients used for both the cosmetic and its packaging.
- In April 2019, Sarten Ambalaj, a packaging producer based in Turkey, received a EUR 25 million investment by EBRD, which will enable the company to become resource-efficient. It also includes a EUR 2 million loan from the Clean Technology Fund under the EBRD's Near Zero Waste program. In February 2020, Interpack Alliance collaborated with top exhibition management firms in the recently organized Pacprocess Middle East Africa (MEA), 2019 fair, in Cairo, Egypt. Such developments in the packaging industry, coupled with the growth in the cosmetic industry in these countries, are expected to boost the market growth.
- Further, driven by the government bodies' several regulations on plastic usage in regards to its commitment to sustainability. There has been a growing preference towards the glass packaging for various liquid cosmetics over plastic bottles. According to the Saudi organization (SASO), plastic products must be made of an approved oxo-biodegradable material, which might restrict the import of plastics in the country. Hence, several factors are expected to change the adoption trends of cosmetic packaging.
- Additionally, in South Africa regions, driven by the low growth rate of GDP and less disposable income. South African consumers demand high-quality products with essential features, such as reliability and affordability. Consumers in this region usually opt for local brands or international brands depending on local lifestyles, customs, affordability, and sustainability. For instance, In April 2019, Unilever South Africa introduced bottles made from 100% recycled plastic and fully recyclable packaging bottles in its Sunlight Dishwashing Liquid product line, as it seeks to reduce its environmental footprint.
Saudi Arabia to Register Significant Growth
- Saudi Arabia is the largest market for cosmetic products in the Middle East and Africa, owing to the increasing spending powers and ability of women in the region. According to the General Authority for Statistics (Saudi Arabia), the largest population group in the Kingdom of Saudi Arabia consisted of 10.6 million male nationals and about 10.2 million female Saudi nationals in 2018.
- The country has depicted one of the highest rates of consumption of cosmetics in the MEA region and is also dominating the consumption of skin and hair care products. Consumers in Saudi Arabia are inclined toward spending large sums on their personal appearance, which is expected to supplement the growth of the cosmetic industry; hence, in-turn increasing the demand for cosmetic packaging in the country.
- The increasing adoption of cosmetics due to the increase in the disposable income in the country is further expected to stimulate the value of the aesthetic value of these products. Also, the increasing penetration of social media and e-commerce websites in the country is proliferating the demand for cosmetic products, hence, stimulating the adoption of cosmetic packaging products.
- In November 2019, SIG, a carton and packaging machinery provider, planned to grow its MEA business by providing the companies with pack size varieties and increased customer support.
The Middle East and Africa Cosmetic Packaging Market is moderately competitive. Several global and regional players view the region as a lucrative opportunity to launch their products and expand their market presence in the region. In contrast, the legacy brands are engaged in reinventing their packaging methods to renew their products and increase their value aesthetically. Further, with the growing disposable income enabling higher spending on cosmetic products in the region, the luxury brands are focusing on the packaging of their products, as it is the primary factor driving the sales of luxury products. Some of the key developments in the market are:
- November 2019: SIG, a carton and packaging machinery provider, planned to grow its MEA business by providing the companies with pack size varieties and increased customer support. The company has invested heavily in its regional headquarters in Dubai by forming a joint venture with Saudi Arabian Packaging Obeikan. These packaging solutions will act as a catalyst for the growth of the sale of cosmetics over the e-commerce websites as carton packaging is used majorly for transportation purposes.
- September 2019: Unilever launched a new body-care product, Love, Beauty, and Planet, to drive and support the sustainable beauty movement across the Middle East. The new product range aims to reduce its annual carbon footprint by 20% by 2020. The company also collaborated with Bee’ah to set up a new recycling plant for plastic recycle management system in the UAE.
- July 2019: Chalhoub Group’s Wojooh beauty retail chain, which changed its name to Faces recently, unveiled its first two rebranded shops in Dubai (Mall of the Emirates) and Riyadh, Saudi Arabia (Riyadh Park). The primary objective behind this initiative was to offer customers an entirely new customer-centric concept offering a variety of digitized discovery zones. Also, Benefit Cosmetics, a San Francisco-based make-up brand, opened its first boutique in the UAE at Bawadi Mall in Al Ain.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1.2 Scope of the Study
4.2 Industry Value Chain Analysis?
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers?
4.4.1 Increasing Focus on Innovation and Attractive Packaging?
4.5 Market Restraints?
4.5.1 Growing Sustainability Concerns ?
5.2 Product Type
5.2.1 Plastic Bottles and Containers?
5.2.2 Glass Bottles and Containers?
5.2.3 Metal Containers?
5.2.4 Folding Cartons?
5.2.5 Corrugated Boxes?
5.2.6 Tubes and Sticks?
5.2.7 Caps and Closures?
5.2.8 Pump and Dispenser?
5.2.11 Flexible Plastic Packaging ?
5.3 Cosmetic Type
5.3.1 Hair Care
5.3.2 Color Cosmetics?
5.3.3 Skin Care
5.3.4 Men’s Grooming?
5.3.6 Other Cosmetic Types (Fragrances, Depilatories, Baby and Child Care, and Sun Care)?
5.4.1 United Arab Emirates
5.4.2 Saudi Arabia
5.4.3 South Africa
5.4.4 Rest of Middle East and Africa
6.1.1 Albea SA?
6.1.2 RPC Group PLC (Berry Global Group) ?
6.1.3 Silgan Holdings Inc.?
6.1.4 DS Smith PLC ?
6.1.5 Graham Packaging L.P. ?
6.1.6 AptarGroup Inc.
6.1.7 Amcor PLC ?
6.1.8 Cosmopak Ltd?
6.1.9 Rieke Corp.?
6.1.10 Gerresheimer AG?
6.1.11 Raepak Ltd ?