The market is predicted to grow at a CAGR of 5.4 percent, which according to market researcher Euromonitor should give it a value of AED663.5m ($180.5m) by 2014.
This figure is set to greatly overshadow the estimated value of the mass fragrance market in the country, which is forecast to hit AED247.9m by 2014 – underlining the importance of high end and luxury products for UAE consumers.
But it is not only UAE consumers that are the driving force behind this growth, the fact that the country has developed as a major travel hub in recent years has also prompted growth significantly.
International travel hub fuels duty-free growth
Abu Dhabi International Airport is in fact the fastest growing in the world, enjoying an estimated growth in traffic of 34 percent in 2009 - growth that recently pushed annual passengers number above the ten million mark.
In line with this, duty free retail has mushroomed at the airport, making it one of the top international outlets for duty free luxury products, including fragrances and skin care.
The growth in this category is highlighted as exhibition organizer Messe Frankfurt gears up for its cosmetics and personal care industry event Beautyworld Middle East 2001, which will be held at the Dubai International Convention and exhibition Centre, May 24 – 26.
UAE fragrance market offers tremendous potential
"The fragrance market in the UAE and the wider region remains an exciting one with tremendous potential for growth," said Ahmed Pauwels, Chief Executive Officer of Epoc Messe Frankfurt, which organizes Beautyworld Middle East.
"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."
The Beautyworld Middle East event will feature 700 international exhibitors, a significant number of which are expected to represent the luxury fragrance and cosmetic category.
The exhibition is the largest of its kinds in the region and is expected to attract an estimated 16,000 international visitors in 2011.