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Global fragrance leaders on scent of success

Mar 6, 2016

Twelve of world’s top 18 fragrance houses to line-up at Beautyworld Middle East 2016 show as MEA region outpaces global growth

Dubai, UAE: Lacklustre growth in the West coupled with a slowdown in China and Russia means global fragrance houses are training their sights on the Middle East and Africa, with twelve of the world’s top 18 ready to line-up at Beautyworld Middle East 2016.

According to analysts Euromonitor International (EMI), The Middle East and Africa (MEA) will be second only to Latin America in the global fragrance growth market, accounting for 31 per cent of the estimated US$5.8 billion value increase from 2014-2019.  

Led by Saudi Arabia (US$1.7 billion) and the UAE (US$423 million), the MEA’s fragrance market was worth US$5.2 billion in 2015, seven per cent up on the previous year. Absolute growth for the entire region from 2014-2019 will value US$1.8 billion, growing at a compound annual growth rate of 6.5 per cent, according to EMI.

Compare that to the tepid prospects in North America and Western Europe – which both have anticipated annual growth rates of 1 per cent over 2014-2019 – and it’s not surprising the world’s premier fragrance-related exhibitors are eagerly awaiting the upcoming Beautyworld Middle East trade show in Dubai.

Taking place from 15-17 May 2016 at the Dubai International Convention and Exhibition Centre, the three-day event will host more than 200 companies specialising in the creation, development and production of unique compound fragrances, oils, and perfumes.

That of course includes twelve of the world’s top 18 fragrance creation houses: Givaudan, Mane, Robertet, CPL Aromas, Iberchem, Eurofragance, Cosmo International Fragrances, Expressions Parfumees, Fragrance Resources, Parfex, Technico Flor, and LUZI.

Many of these, including French-headquartered perfumeries such as Mane, Robertet, Expressions Parfumees, and Technico Flor, recently set up bases in the UAE to better serve the insatiable Middle East appetite for fragrances used in a variety of beauty and wellness products, from perfumes, soaps and deodorants, to cosmetics, oils, and shampoos.

Others went a step further; Spanish company Eurofragance – which is exhibiting at Beautyworld Middle East for the seventh time – last year established an AED10 million 10,000sqft creative centre in Dubai to create fresh fragrances that encapsulate the essence of the Middle East.  Earlier this year, the company also invested in an AED3 million automatic fragrance compounder.

Sheikh Zaman, Eurofragance’s Country Manager, said the Middle East represents nearly 60 per cent of its global business volume: “We currently have two production centres and four creative centres in Barcelona, Mexico City, Dubai, and most recently, in Singapore.”

“Most of our customers are based here so it’s a very important and strategic market for us.  In the Middle East, male or females enjoy fragrance because here, more than anywhere else, fragrances are very much a part of our everyday lives, and essentially represent an extension of our lifestyles,” added Zaman.

Swiss company LUZI fragrance compounds is exhibiting at Beautyworld Middle 2016 for the fourth time. CEO Juerg Koeller, said: “Being an international fragrance supplier, we use the challenge of blending French perfumery traditions with the ones of the Orient to provide our clients with only the best of two worlds.

“Dubai being at the hub of the East and West is an ideal market for showcasing the current trends. Our fragrances reflect these trends according to the tastes of the mass, prestige and the niche markets.”

Elsewhere, Robertet Group from the French town of Grasse – considered the world’s perfume capital – is returning to Beautyworld Middle East 2016 following a successful debut at the show last year.

Dominique Bertolini, General Manager of Robertet’s Dubai branch said: “Our largest markets are in the Europe and the USA, but the Middle East is also growing very fast."

Fragrance is the largest in size of five core product groups at Beautyworld Middle East 2016, the region’s leading international trade fair for beauty products, hair, fragrances and wellbeing.  With fragrances climbing a steep regional growth path, the section has grown in line with market expectations, from 111 exhibitors in 2011 to 170 in 2015, growing annually by 11 per cent. 

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, the organiser of Beautyworld Middle East, said: “The Middle East has a long cultural connection to fragrance that goes beyond beauty.  The region’s hot climate encourages consumers to maintain high levels of personal hygiene, and fragrance enables them to support this.

“Developing markets such as the Middle East will benefit from favourable macroeconomic factors, where rising disposable incomes and stronger purchasing power will in turn spur growth in discretionary purchases, including fragrances,” Pauwels added.

In addition to Fragrance, Beautyworld Middle East focuses on the four other core product groups of Hair, Nails, and Salon Supplies; Cosmetics and Skincare; Machinery, Packaging and Raw Materials; and Professional Equipment and Spa.

The show’s footprint covers not only the Middle East, but extends across North and East Africa, the Levant, Central Asia, South and Southeast Asia, making it a key networking and sourcing platform for the beauty and wellness industries. 

In 2015, Beautyworld Middle East featured 1,441 exhibitors from 60 countries, and attracted 29,670 trade visitors from 120 countries, with more than half of the visitors coming from outside of the UAE.

Returning show highlights and features at Beautyworld Middle East 2016 include Centre Stage by Nazih Group; Hair Education by ghd; ‘Face It!’ Makeup competition; Nail it by OPI & Nazih Group; and the two-day Business in Beauty Summit.