Growth in demand for premium fragrances in the UAE continues unabated, with sales of high-end, signature products growing at a CAGR of 5.4%. This is faster than the sales of mass-produced fragrances, making the region a prime target market for luxury perfume labels from across the world.

Recent research from Euromonitor International, official knowledge partner for Beautyworld Middle East 2011, which will take place in Dubai from May 24-26, estimates that the market for premium fragrances will be worth Dhs663.5m by 2014 while sales of mass fragrances are expected to be worth Dhs247.9m in the same period. This is a key indicator that the UAE market has a marked preference for high end perfumes and other luxury goods.

“The fragrance market in the UAE and the wider region remains an exciting one with tremendous potential for growth,” says Ahmed Pauwels, CEO of Epoc Messe Frankfurt, who organizes Beautyworld Middle East, the region’s largest trade event for beauty products, fragrances, haircare and wellness. “The average spend on premium perfume is relatively higher than in other parts of the world as fragrances and perfumes are an important part of the local lifestyle and there is a higher disposable income,” Pauwels says.

“Beautyworld Middle East, with its region-wide footprint, gives leading perfume houses and fragrance products a first-hand look at this burgeoning market. Retailers and wholesalers from the region also use the event to scout for new deals, sign up new suppliers and place purchase orders,” Pauwels adds.

While the local population are big consumers of premium perfumes, another big factor driving the luxury perfume market in the region is the thriving tourism industry. Tourists account for a significant segment of the perfume market, with duty free sales at the region’s airports, mall retail outlets and other shopping locations further driving spending in this segment.