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R R E E P P O O R R T T

Furthermore, while online sales currently remain relatively low, $248.5 million equating to 67.5% of the market’s overall value.
this is expected to grow to account for around 17% of overall The day/club/salon spa segment contributed revenues of $72.3
sales during 2024. As more Saudi women join the workforce, million in 2022, which was equivalent to 19.7% of the market’s
the demand for mass beauty and personal care products aggregate value.
is expected to increase alongside a rising
demand for Halal-certified products.

Saudi Arabia’s Young Market
projects accelerated growth
for the beauty market
Approximately 37% of Saudi Arabia’s
population is below the age of 14, and those
under the age of 25 account for around
51%. Once people under the age of 29 are
included, the total percentage of young people in Saudi Arabia As the kingdom continues to successfully diversify its
amount to two thirds of the kingdom’s population. economic activities, it is also expected to benefit from an
This has led to a rise in the trend of social media influencers increase in tourism. Coupled with its established brand
showcasing their beauty regimes over the past few years, with reputation and wide range of services and facilities it offers,
both national and international beauty companies turning Saudi Arabia is quickly becoming the go-to place in the MEA
to influencers as a route to attract the younger consumer’s for wellness vacations. If we add to this the ever falling rate
attention and raise brand awareness. of unemployment, the rising disposable income, and the
Saudi Arabia has one of the highest rates of smartphone presence of women in the workplace with a desire to care
ownership in the world, which is another indicator as to why for their health and wellness as well as their appearance, it is
brands should prioritise a strong online marketing strategy clear that Saudi Arabia is a very attractive market for brands
when launching into any market, especially Saudi Arabia. to explore. The development of resorts where customers can
When put together, this young consumer profile and the enjoy treatments in the same location as they can sleep is
increase of women joining the workforce means that Saudi highly attractive and is driving the market volume up quickly,
Arabia benefits from one of the highest spends per capita on with a projected CAGR of 12.5% between 2022-2028. Saudi
cosmetics worldwide. Arabia’s travel and tourism industry is expected to have the
fastest growth in the Middle East region over the next 10 years.
A shift towards clean beauty, The government of Saudi Arabia has a strategic framework
fuelled by COVID-19 called “Saudi Vision 2030” which focuses on the development
The trend towards clean beauty comes as no surprise, of sectors such as recreation, health, infrastructure, tourism
with this trend sweeping across the globe due to growing and others to reduce its financial reliance on oil. Their main
environmental awareness and the responsibility that is focus will be to continue to drive tourism, which will have an
being put on the consumer to make smarter purchasing unquestionable effect on the growth of the spa and wellness
decisions, not only for beauty and personal care but across market within Saudi Arabia. The market is highly fragmented
all categories. This in turn has meant that some consumers with large, established brands operating next to small and
have been left with no choice than to switch from higher-
priced mass products to lower-priced premium products.
As a result, there is more demand for local, eco-friendly,
natural, halal and organic skincare products.

The Saudi Arabian spa market: one to keep an eye on
Taking into consideration all of the above factors, i.e young
population, high per capita spend, women joining the
workforce and a shift towards clean beauty, it is very clear that
the spa and wellbeing sector in Saudi Arabia is one to keep a
close eye on. Despite the negative growth due the COVID-19
pandemic, the hotel/resort spa segment accounted for the
market’s largest proportion in 2022, with total revenues of