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Niche, Personalisation and AI Focus on Growing Industry For Market Demand at Beautyworld Middle East 2023

2 Nov 2023

With the GCC region as dominant players in the global fragrance industry - expected to double its market value to $10.7 billion by 2027 - industry players reveal the market focus relating to consumer demand and expansion, with ‘premiumisation’ and experiential scents being key responses.

The possibilities of AI as a tool for the beauty industry look set to transform the customer experience, whilst the ‘home tech’ sector is proving popular for domestic treatment use.

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Dubai, UAE: As the UAE and Saudi Arabia emerge as the dominant players, constituting the two major markets for perfumes and fragrances in the GCC region, industry experts, manufacturers and niche fragrance houses have shared their insight into the booming industry sector at the 27th edition of Beautyworld Middle East – the region’s largest international trade fair for beauty, hair, fragrance and wellbeing.

The rise in options for home based ‘Beauty Tech’ products is increasing with more consumer demand than ever. With AI being explored as a useful growth tool in the beauty and cosmetics sector, manufacturers and experts have showcased innovative solutions for salon and domestic use. 

With the fastest growing section of the trade show dedicated to the showcase and innovation of the fragrance sector, at the cutting edge, luxury fragrance pioneer Anfasic Dokhoon has launched its Emovation Lab. This futuristic fragrance experience offers a unique opportunity for enthusiasts to create their own personalised scents inspired by their own emotions.

Olimpia Mascolo, Co-founder, Anfasic Dokhoon, explains: “The Emovation Lab is based on the Arabian tradition of layering perfumes. We take the client through a journey of understanding the perfume families, then the ingredients and finally understanding how they blend together to create your own emotional olfactory identity.”

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Personalisation and niche fragrances are not just for the traditional scent however, with the trends expanding out into homecare use and out of home experiences. Marketing Manager at CPL Aromas, Elsa Rahal, says that the luxury fragrance developers have seen an industry shift and growing popularity for ‘premiumisation’ within the market. “Niche has almost become a bit more commercial in 2023. Brands are looking for the next level in ‘premium’ and this is visible across all categories, not just fine fragrance. Candles, personal care and even domestic home care are categories looking for a premium smell and feel for their mass-produced products. We see this also in terms of packaging and not just fragrance. Commercial sensitivity is certainly making a play in the luxury space, making scents that they believe will sell well, whilst maintaining creativity in branding” she said.

‘Leveraging AI for Business Growth’ was explored at the Next In Beauty Conference as Nidhima Kohli, Founder, Beauty Matching Engine, revealed that experiments showcasing AI-generated ‘ideal’ images outperformed campaigns featuring 'real' women, impacting revenue positively for the beauty industry. This indicates a potential preference for visually ‘perfect’ AI-generated imagery. Kohli encouraged beauty industry professionals to experiment further with AI-generated content tools to understand their impact on audience engagement and revenue generation for their individual businesses and brands. Other AI tools were also recommended for research and assessment to enhance productivity in various business segments within the beauty industry.

Helen Dong, senior sales manager at Chinese exhibitor Beauty Tech explained that, as a returning business, she “sees Dubai as a window for the world in the beauty industry, especially for innovation and technology and considers Beautyworld Middle East as a vital showcase.” Beauty devices for home use are becoming more and more popular for consumers who can experience treatment technology that previously could only be found in salons or spas, Dong continued.