The General Authority for Statistics (GASTAT) estimates that the average per capita monthly income and average per capita monthly expenditure of Saudi Arabia were SAR 2,741 and SAR 2,857, respectively, in 2018. As per the organization, the average monthly household expenditure of the male population and female population on personal goods and services stood at SAR 3,728 and SAR 1,111, respectively, in 2018. Thus, the rising expenditure of people on personal goods on account of their soaring per capita income will encourage the consumption of color cosmetics in Saudi Arabia.
Additionally, the increasing participation of women in the labor force will help the Saudi Arabian color cosmetics market witness a CAGR of 7.1% between 2020 and 2030. According to PS Intelligence, the market revenue stood at $603.6 million in 2020, and it will reach $1,197.2 million by 2030. As per the GASTAT, nearly 20.7% of the labor force of the country comprised women in the first quarter of 2020, and the participation surged to 25.3% in the second quarter of 2020.
Moreover, the hefty investments being made in advertising and marketing initiatives, especially through digital channels and social media influencers, owing to the growing internet and mobile phone penetration, will facilitate the consumption of color cosmetics in Saudi Arabia. The Communications and Information Technology Commission (CITC), Ministry of Communications and Information Technology (MCIT), states that 93% of the people were internet users and 43.8 million people were mobile subscribers in Saudi Arabia in 2019. The CITC also states that the country has one of the largest numbers of social media users currently.
Read More: Saudi Arabia Color Cosmetics Market Analysis and Demand Forecast Report
Men, women, and the unisex populations in the country can procure luxury and mass color cosmetic products from multi-brand retail stores, grocery/department stores, online stores, and supermarkets/hypermarkets. In the last few years, supermarkets/hypermarkets were the preferred distribution channels for color cosmetics in Saudi Arabia, owing to the availability of such mass and luxury products under a single roof and convenient operational timings of these stores. In addition, the surge in the urbanization rate, competitive pricing, and boom in the working population increase the footfall of customers at supermarkets/hypermarkets.
These distribution channels offer eye make-up, facial make-up, hair color products, lip products, nail products, and special effects products with one-time and refillable packaging. In the coming years, facial make-up will gain high prominence among the Saudi Arabian population, primarily on account of the soaring participation of women in the labor force. The women workforce of the nation is increasingly using different shades of foundations, bronzers, and blushes to get a flawless look.
Geographically, the western region will dominate the Saudi Arabian color cosmetics market in the foreseeable future, due to the rising urbanization rate and growing disposable income of the people here. According to the 2021 World Population Review, the population of the city of Jeddah stood at 3,976,400 in 2021, and the cities of Mecca, Medina, and Ta'if were home to around 1–2 million people each. Currently, the people of the western region of the nation are using color cosmetics by Coty Inc., Avon Products Inc., The Procter Gamble Company, LVMH Moët Hennessy-Louis Vuitton SE, and L'Oréal S.A.
Therefore, the growing per capita expenditure and increasing number of women in the labor force will fuel the consumption of color cosmetics in Saudi Arabia.