Saudi Arabia Wellness Market Report – 2020: ken research

Wellness industry in Saudi Arabia is a combination of products and services such as health clubs, spas, cosmetic products and beauty salons and nutritional and dietary supplements, Functional food & beverages. Health and wellness which was considered to be a fairly niche concept in Saudi Arabia generally with a selected segment of the population especially the elite segment concentrated in the cities of Riyadh and Jeddah, has recently gained mainstream audience. Wellness market had increased at a CAGR of ~ % during 2010-2015. Wellness market had increased from USD ~ billion in 2010 to USD ~ billion in 2015 the major reason accounted for the growth in the market is increase in the demand of personal care products and the services offered by the Fitness centers and Spa & salons.

The Wellness industry in Malaysia has undergone through a dynamic change over the last few years 2010-2015. Saudi Arabia wellness market offers services and products from premium and niche beauty products to organic products and wellness brands that help people look good and stay healthy. The changing demographics of the country (Increase in the youth and female population) had changed the consumers buying pattern. The Youth population of the country is more influenced by the international brands, which are costlier. They are also more conscious about their looks and fitness due to which they do not see the prices before going for wellness products and services, they only see the quality of the services and the products offered. The rise in number of tourist arriving (wellness tourism) in the country had also contributed in the revenue of the industry.

The wellness industry in Saudi Arabia can be segmented into wellness services market and wellness products market. Wellness products market is the major contributor in the revenues of the wellness industry. It had contributed to ~ % in 2015.the wellness services market had contributed to ~ % in 2015.it has been forecasted that the wellness market will increase at a CAGR of ~ % during 2016-2020 to reach at USD ~ billion in 2020.the major growth driver for the increase in market in future will be the increase in life style diseases due to the changes in life style, entry of international brands and increase in knowledge and awareness about personal health and Hygiene. Wellness Services market includes services offered by fitness centers and Spa & Salon. The increase in awareness about health and fitness among the people in the country has increased the demand of fitness services in the country. The wellness services market had increased from USD ~ Million in 2010 to USD ~ Million in 2015.

The Market had increase at a CAGR of ~% during 2010-2015. The entry of various international brands in fitness and Spa/Salon services in the country had encouraged the population of the country to join these centers to remain healthy and fit. Wellness products are the major contributor in the Wellness industry of the country. The wellness products include all personal care products and the Nutraceutical Products. The Personal care products also encompasses of the products which are of basic Necessities such as soaps, Face creams, Shampoos and others. These products are required by every individual of the country, thus making this sector as the leading sector in the Wellness industry of Saudi Arabia. The wellness Products market had increased from USD ~ Million in 2010 to USD ~ Million in 2015.The market had increased at a CAGR of ~% during 2010-2015.

• What is the Role of Fitness Centre Market in Saudi Arabia Wellness Industry?Health and fitness have started being one of the most important concerned for the people in

Saudi. The obesity rate had increased in past few years among the population. The unhealthy habits, fast foods, no physical activities had increased the obesity rate in the population. People started joining the fitness clubs and gyms for improving and maintaining their heath and bodies. The Prominence for joining fitness clubs and gyms had increased over past few years. The fitness services market in The Kingdom of Saudi Arabia has been witnessing an upward trend and had registered a positive growth in terms of number of fitness clubs and subscribers to fitness centres. The Fitness Services Market had increased at a CAGR of ~ % during 2010-2015.the market had increased from USD ~Million in 2010 to USD ~ Million in 2015.

The rise in demand of weight management and body building among the population had increased the number of fitness centers in the country, owing to the increase in the revenues generated by theses fitness clubs. One of the main reasons accounted for the increase in number of fitness centers in Saudi Arabia were the approval of license for female fitness centers in the country. The number of Fitness centers in the country had gone up from ~ in 2010 to ~ in 2015. The increase in prominence of personal trainers in the country had increased the demand of personal trainers in fitness centers. Personal trainers had increased from ~ in 2010 to ~ in 2015.The Number of Personal trainers had grown because of the increase in number of new offerings provided by the fitness centers such as yoga classes, Pilate’s classes and others which requires personal training.

The customer base of the fitness services market of Saudi Arabia had expanded over the past years. Major reason contributed to the increase in the subscribers of fitness centers in the country is due to the increase in the obese rate. The number of subscribers had increased from ~ thousands in 2010 to ~ thousands in 2015. The Fitness services market will increase at a CAGR of ~ % during 2016 to 2020. The market will increase from USD ~ million in 2016 to USD ~Million in 2020. The major reason accounted for this is the rise in the awareness of health and fitness especially in obese population and prevalence of life style diseases because of the increase in work pressure among the population.

• What has been the Performance OF Spa/Salon Market in Saudi Arabia Wellness Industry?Spa & Salon industry in Saudi Arabia is increasing at a tremendous rate over the few years. Spa

and salon concept is more than a therapeutically ritual for the body. In Saudi Arabia people are spending more on body and hair treatments, which had increased the demand of salon and spa services in the country.

The demand in the services of salon and spa market had surge during this period due to the rise in awareness of beauty and Hygiene. Expenditure on Beauty care and body care had become the major part of the total expenditure of the income. During this period woman of Saudi spends on an average of USD 4,050 annually on beauty treatments. The Spa/Salon Services Market had increased at a CAGR of ~ % during 2010-2015.the market had increased from USD ~Million in 2010 to USD ~ Million in 2015. Unorganized sector is leading the market in Spa/Salon services in the country. The unorganized Spa/Salon centers had contributed to ~ % in 2015 in the overall revenue of the Spa/Salon services in the country. The organized Spa/Salon centers have contributed to ~ % in the market.

The rise in number of outlets of salon and spas and additionally, the increased in number of services provided by these centers have triggered the revenues of the Spa & Salon industry. The number of outlets in the country had increased at a CAGR of ~% during 2010-2015.the number of Spa/Salon centers had increased from ~ in 2010 to ~ in 2015. The robust increase in wellness tourism in the kingdom had increased the revenue of Spa services in the country. The people from all over the world visits Saudi and use to experience the spas of the kingdom. In 2015, ~ million of tourists have arrived in the country which had increased the demand of spa services in the country. On the basis of types of services provided by the Spa/salon centers in the country facial treatment is leading the market followed by hair treatment, body treatment and make up. The facial care had become the basic necessity for the women. Women are the major contributor in the revenues of the Spa/Salon industry. Jeddah had contributed majorly in the revenues of the Spa and salon market followed by Riyadh, Dammam and others. Jeddah has the highest number of spa/salons in the country.

The increase in prominence of hotel and resort Spa will encourage many big hotel chains to open more number of Spa centers for the wellness tourists which will surge the revenue of the industry in coming future.

• Ho Personal Care Products Market Has Evolved in Saudi Arbaia?The market of Saudi for Cosmetic and toiletries is one of the most attractive markets in the

Middle East region. The personal care market had increased in size majorly due to the increase in the fragrance market of the kingdom.The personal care product includes skin care, hair care and fragrance and color cosmetics. The demand of personal care products had been increasing over the years. Personal products such as skin care and hair care the basic necessity products which are used by everyone. The personal care market had increased at a CAGR of ~ % during 2010 to 2015. The market had increased from USD ~ million in 2010 to USD ~ million in 2015. In Saudi Arabia females are more brands conscious and they prefer to buy products of international brands. These products are expensive than other local brands which have majorly contributed in the revenues of the personal care products. Also, there is a belief in the Saudi population that high prices mean better quality.

Organized sector is leading the market in Personal care products in the country. The organized Products had contributed to ~ % in 2015 in the overall revenue of the personal care products in the country. The Unorganized Products have contributed to ~ % in the market. People in the country are becoming more conscious for their looks, and for this reason they are spending more on their personal needs. The increase in knowledge about the personal hygiene and anti bacterial products mainly through advertisement in print media, TV had increased the demand of personal care product in the country. The fragrance products have led the market in the country. In Saudi Culture, perfume and fragrance determines about the life style of a person. People of the kingdom spent huge amount of money in fragrance segments. The rise in fragrance market accompanied by the increase in skin care, hair care and color cosmetic market had triggered the overall market size of the personal care products in the country.

Young population is the major consumer of skin care products. The urban population in the country is very high, with around ~% people living in the cities and towns of the country. The urban people are demanding more of skin care products as they have more knowledge about the benefits of the skin care products and additionally, they have confidence in the international and mass brands which had encouraged them to buy more skin care products. The market will increase due to the surges in the demand of Men’s grooming segment and increase in the penetration of international brands among the female population of the country. The companies such as L’Oreal, P&G will be focusing on expanding the production line for male grooming section in the country. They will be introducing a wide range of products in the male grooming section in future. Also, the increase in the internet penetration in the country will trigger the online sales for personal care products. Other factors which will be driving the market in future will be increase in population, rise in PDI per household, rise in urban population.

• How Nutraceutical Products Market is Performing in Saudi Arabia?The demand of nutraceutical product had increased in the past few years. The increase in

prevalence in life style diseases in the country had increased the demand of dietary and nutritional supplements in the country. People in the country (especially in the rural areas), prefers to take natural vitamins and proteins from natural resources, which had also impacted the nutraceutical market in the country. The market had increased at a CAGR of ~ % during 2010-2015.the market had increased from USD ~ million in 2010 to USD ~ Million in 2015.The major reason accounted for this is the surge in the demand of Vitamin D supplement in Saudi Arabia. Around ~ % of the women in the country are suffering from vitamin D deficiency. Due to the religious traditions women in Saudi wear the clothes that cover their whole bodies which had increased the deficiency of Vitamin D in Women. Also, the increase in number of fitness centers the country had increased the demand of nutraceutical products. These gyms and fitness centers recommends dietary, Vitamins and protein supplements to the members of the Fitness clubs for weight loss and weight gain programs. The demand of nutraceutical product had increased in the past few years. The increase in prevalence in life style diseases in the country had increased the demand of dietary and nutritional supplements in the country. People in the country (especially in the rural areas), prefers to take natural vitamins and proteins from natural resources, which had also impacted the nutraceutical market in the country.

The nutrition and Dietary supplements includes weight loss, weight gain Supplements, Vitamins, iron pills, Protein shakes and other nutrition and dietary Supplements. The major reason for this lion share in the market is due to the increase in demand of these dietary supplements, as people in the country are becoming more health conscious and they are demanding more of supplements to include in their diet charts. Dietary and Nutritional supplements is sold through various channels including pharmacies, supermarkets, hypermarkets, e-retailing, direct selling and others. Also, the aging population in the country has driven the market of dietary and nutritional supplement. As, the people add different types of nutritional pills in their diet to avoid the anti aging symptoms. The craze of weight loss has been increasing in the kingdom. The people in the country want to lose weight fast within one or two months, which had increased the demand of dietary supplements in the country.

Functional food and beverages market in the country is diverse, having a range of products aimed at providing various benefits. Such as, food which feature health claims of general health and well being are the highest sold category, while intestinal regulation is the prime functional benefit that most of the fortified food and beverages provide. On the basis of positioning the products for general wealth & wellbeing have contributed majorly in the overall functional food & Beverages Market. The rise in obese rate, risk of heart diseases and prevalence of other lifestyle diseases will increase the demand of Nutraceutical Products (Especially supplements) in Saudi Arabia. Also, the rise in the number of fitness centers and Saloons during this period will increase the demand of Nutraceutical products such as protein shakes and other energy boosting drinks are recommended by the fitness experts or vitamins and iron supplements recommended by beauty experts.

• Trends & developments in Saudi Arabia Wellness IndustryThe change in the demographics of the country, over the years had changed the consumer

preference for wellness Services and Products in the country. It has been witnessed over the years that the youth population of the country had been increasing over the years. Youth population in the country is more influenced by the TV and internet. Also, the youths are more aware about their health and fitness, due to this reason they regularly visits Fitness centers and have indulged themselves in some or other kinds of physical activities. Lifestyle diseases have left behind the traditional diseases in Saudi Arabia. Lifestyle diseases refer to the diseases that result because of choices that people make in their life. The lifestyle diseases basically occur due to unhealthy eating habits, no physical work out and no stress management. Most common lifestyle diseases encountered by the population of Saudi Arabia are obese, Diabetes and cardiovascular diseases. This had majorly triggered the market size of wellness industry in the kingdom.

The robust increase in opportunity in the wellness industry in the kingdom had forced many international brand to enter in the kingdom. The international brands are entering in the country for each segment of wellness industry. The increase in number of international brand in the country will increase the revenue of the wellness market.

• What Are The Future Prospects For Saudi Arabia Wellness Industry?The increase in Female and youth population in the country will surge the demand of wellness

products and services in the country. Also, the increase in Men’s grooming section in future will trigger the revenues of the wellness industry in the country. The entry of new international brands in the country will also increase the demand of wellness services and wellness products in the country. Also, the existing companies are planning to expand their customer base by increasing the customer reach in every part of the country. In future the Wellness products will lead the market with share of ~% in the overall revenue of the wellness industry. the wellness services will contribute to ~% in the market in 2020.

• Source: https://www.kenresearch.com/healthcare/general-healthcare/saudi-arabia-wellness-market-report/31980-91.html

• Contact: Ken ResearchAnkur Gupta, Head Marketing & CommunicationsAnkur@kenresearch.com+91-9015378249

• Website : www.kenresearch.com

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