The Barefaced Podcast — The Middle Eastern Beauty Opportunity

Host: Lily Twelvetree (Barefaced)
Episode Date: September 10, 2025
Main Theme:
A deep dive into the unique growth, dynamics, and opportunities within the Middle East’s (specifically the GCC’s) luxury beauty market, explaining its contrast to Western beauty trends, the historical and cultural factors that shaped it, and the consumer behaviors that differentiate the region.

Episode Overview

Lily explores why the Gulf Cooperation Council (GCC) region — United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman — has become such a pivotal market for luxury and prestige beauty. She outlines the region’s economic boom, luxury tourism, evolving consumer trends, and local brand successes, offering a strategic ‘crash course’ for beauty pros looking to enter this new frontier.

Key Discussion Points & Insights

1. Why Focus on the GCC?

• The GCC controls 43% of the global luxury market (00:03:55).
  • Notable considering its small population.
• Two factors driving growth: rising local wealth and luxury tourism.
• Beauty sales in the GCC buck the Western trend, growing rapidly while the West contracts.
• “While the West is moving away from luxury beauty, the GCC is moving towards it…” (00:06:35).

Notable Quote:

“The luxury sector in the GCC has a 43% market share of the global luxury market…especially relative to its pretty small population.”
— Lily (00:04:42)

2. Historical Context: How Did the Boom Begin?

• The UAE’s transformation — from the British-controlled Trucial States (pre-1971), through the oil boom, to economic unification (1971).
• Strategic focus: making Dubai a tourism and retail destination.
• [00:13:00] Launch of the Dubai Shopping Festival (DSF) in 1996: retail + entertainment = global luxury magnet.
• Creation of free trade zones (e.g., Jebel Ali) made the market irresistible for international brands (00:18:42).

Notable Quote:

“They wanted to create this dream…to reshape their nation’s destiny, they needed people to come, to marvel.”
— Lily (00:15:35)

3. Market Gatekeepers & Distribution

• Expansion depends on major local distributors ("luxury distributors"), such as Chalhoub Group and Alshaya Group.
• These intermediaries play a pivotal role, offering infrastructure, market expertise, and sometimes in-house marketing.
• Chalhoub Group controls ~50% of the region’s beauty and perfume market (00:22:50).

Memorable Moment:

“It’s kind of like Sephora with their own incubator Kendo. Chalhoub Group have now started their own brands too…and made a beauty retailer called Faces, the second largest in the region.”
— Lily (00:24:30)

• Ulta Beauty: Entering the GCC, partnering with Alshaya Group; first international Ulta store will be in Dubai.

4. Beauty Imports, Exports, and Retail Landscape

• Key importers into the UAE have shifted over time:
  • 2013: France leads, US 2nd, India 3rd.
  • 2018: South Korea enters the top 10 (late compared to K-Beauty’s US boom).
• K-Beauty: Explosive growth — 1,000% increase from 2014–2023. Spurred further by a new 2024 SK-UAE tariff agreement, facilitating more Korean beauty imports (00:32:30).

Notable Data Points:

• “South Korean beauty imports sat at just $4.9 million in 2014; in 2023, $93.8 million.”
• E-commerce lags: Only 63% of UAE shoppers buy online (UK: 89%).
  • In-person retail dominates via mega-malls and established beauty stores.
• Top beauty retailers by store count:
  • Sephora (84), Faces (70), Arabian Oud (70) (00:38:15).

5. Consumer Insights: Who Is the Middle Eastern Beauty Shopper?

• Shopping habits vary by category:
  • Supermarkets dominate skincare purchases.
  • Beauty stores lead for makeup and fragrance.
  • 49% of prestige beauty sales are fragrance, 37% makeup, and 14% skincare.
  • Men outspend women on fragrance ($83/mo vs. $74/mo).
• Despite the luxury reputation, many habits overlap Western trends (e.g., supermarket skincare), but cultural nuances remain.

Notable Quote:

“She’s not non-understandable…she’s buying her skincare from a supermarket.”
— Lily (00:44:36)

• Fragrance obsession is rooted in deep cultural tradition but amplified by global trends (Guerlain, Parfums de Marly, LV, Jean Paul Gaultier, Prada are top brands).
• Government focus on fixing "leakage": nationals were spending abroad; response is likely loyalty programs and luxury retail experiences.

6. Social Influence, Local Trends, and Brand Successes

• Local TikTokers display a “flashy, Kardashian-esque” lifestyle, contrasting with Western trends emphasizing authenticity.
• Beauty trends are heavily globalized via social media, but brand success is driven by serving local needs.
• Example brands:
  • Amouage: Niche fragrance, exporting Omani tradition (“to bottle Oman for the world” per Sultan’s vision).
  • Huda Beauty: Internationally acclaimed brand rooted in GCC; success tied to high-coverage, longwear formulas suited for the climate.

Notable Quotes:

“I think…that it’s less of a stylistic choice for Middle Eastern women to have this trend of opting for a bolder brow or more foundation, because it seems to be out of necessity due to extreme weather conditions.”
— Lily (01:05:24)

• Local brands’ global success often relies on:
  • Deep understanding of performance and longevity needs (heat, humidity).
  • Storytelling: heritage balancing with modernity.

Timestamps for Key Segments

• 00:00–00:06 — Episode intro & main theme; overview of GCC
• 00:07–00:11 — Luxury market stats, Western vs. GCC beauty trends
• 00:12–00:26 — GCC economic history & rise of luxury retail (Dubai Shopping Festival, trade zones)
• 00:27–00:32 — Role of distributors (Chalhoub, Alshaya), entry strategies
• 00:33–00:38 — 15-year beauty trade data, import/export trends, K-Beauty growth
• 00:39–00:42 — Retail landscape: major brick-and-mortar + e-commerce
• 00:43–00:51 — Who is the GCC beauty consumer? Shopping habits, fragrance focus
• 00:52–01:07 — Social media, local influencers, global trends, government/brand measures
• 01:08–01:15 — Local brand case studies: Amouage, Huda Beauty, product preferences

Standout Quotes & Memorable Moments

• “The luxury sector in the GCC has a 43% market share of the global luxury market. 43% is wild…” (Lily — 00:04:40)
• “Dubai Mall had just over 111 million visitors in 2024.” (00:38:45)
• “Chalhoub Group controls almost 50% of the cosmetics and perfume market in the Middle East.” (00:22:51)
• “If you can’t buy K-Beauty, what are you buying and where are you buying it?” (00:35:00)
• “What I took away from learning about Amouage was that the Middle East doesn’t seem to be much different…” (01:10:10)
• “Huda Beauty…launched her first product, false eyelashes, into Sephora in Dubai by 2011.” (01:11:30)
• “The beauty trends here don’t seem that different or that foreign. Despite this deep cultural difference…” (01:13:10)

Episode Takeaways

• The GCC, especially the UAE and Saudi Arabia, is uniquely poised for luxury beauty growth, even as the West’s appetite wanes.
• Structural policies (free zones, distributor networks), luxury tourism, and a love of in-person retail created a fertile ground for international brands.
• Social media has blurred lines between local and global beauty trends, but successful brands tailor to local climate (longevity, performance) and heritage storytelling.
• Western beauty professionals hoping to expand internationally need to understand both the subtle overlaps and the deep differences in consumer preference in this burgeoning market.

Further Resources

• For visuals, data graphs, and extended brands breakdown, subscribe/read at barefaced.substack.com.