Date post: | 19-Jul-2015 |
Category: |
Business |
Upload: | euromonitor-international |
View: | 283 times |
Download: | 1 times |
OPPORTUNITIES IN THE MIDDLE EASTERN AND TURKISH HAIR CARE MARKET
IN-COSMETICS 2015
BENEDETTA CORDARO, SENIOR RESEARCH ANALYST (MIDDLE EAST & AFRICA)
© Euromonitor International
2
Euromonitor International: Strategic Global Market Research
ABOUT EUROMONITOR INTERNATIONAL
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSION
© Euromonitor International
4THE MEA REGION ON A GLOBAL SCALE
US$ 16bn
US$ 16bn
US$ 13bn
US$ 22bn
US$ 5bn
US$ 4bn
US$ 1bn
Largest Smallest
Global Hair Care Market in 2014
© Euromonitor International
5THE MEA REGION ON A GLOBAL SCALE
0.000
5,000.000
10,000.000
15,000.000
20,000.000
25,000.000
Asia Pacific WesternEurope
Latin America North America EasternEurope
Middle Eastand Africa
Australasia
Global Hair Care Market in 2014
US
$ M
illi
on
© Euromonitor International
6THE MEA REGION ON A GLOBAL SCALE
US$ 5
US$ 14
US$ 26
US$ 32
US$ 37
US$ 37
US$ 3
<30 US $ 30-20 US $ 20-10 US$ 10-5 US$ >5 US$
Hair Care Products per Capita Spending in 2014
© Euromonitor International
7THE MEA REGION ON A GLOBAL SCALE
0 5 10 15 20 25 30 35 40
Middle Eastand Africa
Asia Pacific
World
EasternEurope
Latin America
WesternEurope
Australasia
NorthAmerica
Per Capita Spending – Regional Breakdown
US$ / year / person
© Euromonitor International
8THE MEA REGION ON A GLOBAL SCALE
+ 11 %
+ 2 %
+ 2 %
+ 5 %
+ 1 %
+ 1 %
+ 11 %
Highest Lowest
Hair Care Growth per Region, 2013-2014
© Euromonitor International
9THE MEA REGION ON A GLOBAL SCALE
-2
0
2
4
6
8
10
12
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
Asia Pacific WesternEurope
Latin America NorthAmerica
EasternEurope
Middle Eastand Africa
Australasia
Gr
ow
th %
US
$ m
illi
on
Hair Care Market Growth, 2013-2014
2013 2014 Growth 13-14 CAGR 14-19
© Euromonitor International
10THE MEA REGION ON A GLOBAL SCALE
The MEA Region Hair Care Market on a Global Scale• Of global hair care
market6%
• Fastest growing market in 2014
11% value growth
• Highest forecast growth (2014-2019)4% CAGR
• Lowest per capita spendingUS$ 3
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSION
© Euromonitor International
12
Six Core Hair Care Markets in 2014
THE MIDDLE EAST AND TURKEY
US$ 3bn
65% of MEA hair care market
4% of global hair care market
TURKEY
IRAN
EGYPT
SAUDI
ARABIA
ISRAEL
UAE
© Euromonitor International
13
The Middle East and Turkey: a Lucrative Hair Care Market
THE MIDDLE EAST AND TURKEY
US$ 830mn
Largest Smallest
US$ 790mn
US$ 80mn
US$ 650mn
US$ 290mn
US$ 240mn
TURKEY
IRAN
EGYPTSAUDI
ARABIA
ISRAEL
UAE
© Euromonitor International
14THE MIDDLE EAST AND TURKEY
0
100
200
300
400
500
600
700
800
900
Iran Turkey Saudi Arabia Israel UAE Egypt
Market Size in 2014
US
$ M
illi
on
© Euromonitor International
15THE MIDDLE EAST AND TURKEY
Hair Care per Capita Spending in 2014
US$ 1
US$ 10
US$ 11US$ 36
US$ 29
US$ 22
Highest Lowest
TURKEY
IRAN
EGYPTSAUDI
ARABIA
ISRAEL
UAE
© Euromonitor International
16THE MIDDLE EAST AND TURKEY
0 5 10 15 20 25 30 35 40
Egypt
Middle East and Africa
Turkey
World
Iran
Saudi Arabia
UAE
Israel
Hair Care per Capita Spending in 2014
US $ / year / person
© Euromonitor International
17THE MIDDLE EAST AND TURKEY
Highest Lowest
+ 29%
+13%
+5%
+12%
+11%
+8%
Hair Care Market Growth in 2013-14
TURKEY
IRAN
EGYPTSAUDI
ARABIA
ISRAEL
UAE
© Euromonitor International
18THE MIDDLE EAST AND TURKEY
0
5
10
15
20
25
30
35
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
Iran Turkey Saudi Arabia Israel UAE Egypt
Gr
ow
th %
US
$ M
illi
on
Hair Care Market Size and Growth
2013 2014 Growth 13-14 CAGR 14-19
© Euromonitor International
19THE MIDDLE EAST AND TURKEY
0
1
2
3
4
5
6
7
8
9
10
0
20000
40000
60000
80000
100000
120000
Turkey Iran Saudi Arabia Israel UAE Egypt
Gr
ow
th
'00
0 L
itr
es
Hair Care Retailing in Volume
Retailing Volume 2013 Retailing Volume 2014 Growth 13-14 CAGR 14-19
© Euromonitor International
20THE MIDDLE EAST AND TURKEY
0
100
200
300
400
500
600
700
800
900
Iran Turkey Saudi Arabia Israel UAE Egypt
Conditioners andStyling Agents
Shampoos
Others
Hair Care Breakdown
US
$ M
illi
on
© Euromonitor International
21THE MIDDLE EAST AND TURKEY
15% growth across the
region
UAE and Israel mature
market with
consumption level
similar to WE and NA
Low but growing per
capita spending
means room for further
development
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSION
© Euromonitor International
23
Trends Affecting Consumption
REGIONAL TRENDS
Socio-economic factors
Consumer insights and consumption patterns
Competitive landscape
Differentiation
Distribution channels
© Euromonitor International
24
A growing, young, urban population
REGIONAL TRENDS
40%
80%
11%
Households are urban
Population under
the age of 25
Average increase
of per capita
disposable income
Better economic conditions:
Higher affordability
Increased employment rates
Women’s economic independence
Urbanisation leads to:
Easier access to services
Third sector employment
Higher availability and accessibility
Consumption driven by young consumers:
Higher education level
More exposed to global trends
Less brand loyal
© Euromonitor International
25
Young, Muslim, Women: A Sophisticated Target
REGIONAL TRENDS
TARGET
ISLAM
• Women
• Men’s grooming less than 2%TARGET
• Over 90% Muslim population
• Exceptions: Israel and UAEISLAM
• Misconceptions and mythsVEIL
• Hair considered signifier of beauty
• Image conscious
• Natural and traditional treatmentsBEAUTY
© Euromonitor International
26
Price still drives purchase choices
REGIONAL TRENDS
90%
Price sensitivity
Brands usually considered mass brands, such as Garnier, Pantene, Sun Silk,
Dove, are often considered premium
Per capita disposable income still quite low (average US$6,000 per year)
ranging from US$3,000 in Iran and Egypt to over US$20,000 in UAE and Israel
Of sales value is represented by mass brands
Price perception
© Euromonitor International
27
Domestic brands challenge with low pricing
REGIONAL TRENDS
Domestic brands
Global
brands
© Euromonitor International
28
More choice boosting consumption
REGIONAL TRENDS
NPDs and
differentiation
Across all
price bands
Price differentiation
Oil/keratin
Frequent NPDs
Natural/
organic/bio
Conditioning and repairing products
Wider availability
© Euromonitor International
29
Modern retailing growing in prominence
REGIONAL TRENDS
+12% modern retailing
Higher accessibility
Higher availability
Higher affordability
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSION
© Euromonitor International
31
A Highly Varied Region
COUNTRY SPECIFIC FEATURES
0
5000
10000
15000
20000
25000
30000
35000
UAE Israel SaudiArabia
Turkey Iran Egypt
Inc
om
e,
US
$
Annual disposable income per capita
0
10
20
30
40
50
60
70
80
90
100
Israel UAE SaudiArabia
Turkey Iran Egypt
Po
pu
lati
on
, m
illi
on
Population in 2014
© Euromonitor International
32
Why One Fits All Does Not Work
COUNTRY SPECIFIC FEATURES
Israel Polarisation (economy vs premium brands)
Egypt Incipient market : oil trend not widespread
UAE 90% population comprised of expats
Iran Sanctions and high inflation
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSIONS
© Euromonitor International
34PROSPECTS
0
5
10
15
20
25
30
35
40
45
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
Iran Turkey Saudi Arabia Israel UAE Egypt
Gro
wth
%
US
$ m
illi
on
2014 2019 Forecasted growth Forecasted CAGR
Hair Care Growth 2014-2019
© Euromonitor International
35
Factors Sustaining Growth
PROSPECTS
Demographics and urbanisation
NPDs and product
availability
Modern retailing
Disposable income
© Euromonitor International
36
Instability: A Major Threat
PROSPECTS
Political instability
Economicinstability
Effects on
Consumption
THE MEA REGION ON A GLOBAL SCALE
THE MIDDLE EAST AND TURKEY
REGIONAL TRENDS
COUNTRY SPECIFIC FEATURES
PROSPECTS
CONCLUSION
© Euromonitor International
38
Middle East and Turkey Hair Care: A Bright Future
CONCLUSION
Growing dynamic markets
Shared consump-
tion patterns
Highly varied region
Political and economic
threats
THANK YOU FOR LISTENING
Benedetta Cordaro,
Senior Research Analyst (Middle East & Africa)