UAE Fragrance market is anticipated to witness potential growth in the forecast period, 2023-2027. Fragrances and perfumes have enhanced the grooming habits of individuals and have become one of the essential products of day-to-day life. The rising internet penetration and the growing number of social media users are augmenting the market growth. Taking this into consideration, several key players in the market are promoting their offerings on social media and other digital platforms. Fragrance ingredients are also widely utilized in products including soaps and detergents, daily use household products that includes shampoos, shower gels, shaving creams, and body care products such as lotions, scrubbers, etc. Development of these fragrance products has extended the industry size. Additionally, an increase in spending capacity and emerging trends such as aromatherapy have amplified the visibility of fragrance products are expected to boost the market growth in the coming years.

Increase in Demand for Eco-Friendly Fragrance Products Propels the Market Growth

The growing popularity of organic and natural-ingredient-based products is primarily driving the market growth. Some commonly utilized ingredients in such fragrances are sandalwood, geranium bourbon, and patchouli. This industry is mostly reliant on synthetic components, with synthetic fragrances accounting for 60–65% of the total market whereas 30–35% of the market has been occupied by fragrances made of natural ingredients. The escalating demand for organic fragrances is due to the expanding consumer awareness related to ingredients used in them. Also, the enhancing focus on personal health and hygiene, as well as the changing lifestyle, is stimulating the consumption of chemical-free products. People across the globe, including in the U.A.E., are getting aware of the significance of a healthy life, which is leading to a rise in the number of gym-goers. As per the Dubai World Trade Centre, in the U.A.E., there are 800 fitness clubs with 523,000 members. Health clubs and gyms that offer personal training are promoting the market growth, as consumers in the U.A.E. are willing to spend more on fragrances and perfumes to mask the unpleasant odor coming from their bodies after an intense workout.

Rise in Expenditure on Advertisement and Promotion Accelerates the Market Growth

Extensive research & development activities along with the spending on advertisements are driving the market growth. Leading key market players are investing in advertisement and promotion to influence consumer purchase decisions. Moreover, the growing utilization of social media and celebrity endorsement is influencing the advertisement strategies adopted by the market leaders. As per the World Bank, the internet penetration in UAE is 100% as of 2021, which increases online sales, that enables cosmetics and perfume retailers to add images and videos to expand the sales of perfumes and fragrances. Various online cosmetics retailers provide the option to the customers to get their perfumes and fragrances customized, thereby the market players are heavily investing in advertisement and promotion to attract consumers to digital media. This also allow to make better decision while formulating performance strategies. Expanding sales of artisanal and custom fragrance products, along with the high expenditure on advertisement and promotion is expected to fuel the market growth in the forthcoming years.

Surge in Demand for Fragrance Products Among Men Supports the Market Growth

The inflating usage of cosmetics among men in their daily routine, which trigger the growth of the market. These days men are becoming more concerned about their personalities which augments the market growth. Furthermore, post-workout, they prefer to use products that contain fragrance to eliminate body odor. The elevating levels of urbanization and emerging fascination trend with western culture spreads beyond cities, men are opting for spicy, woody, oceanic, and citrus notes. All these aforementioned factors are estimated to witness the growth of the fragrance market over the forecast period.