The color cosmetics market in the United Arab Emirates is expected to witness a compound annual growth rate of 11 percent until 2020, according to a Euromonitor report.

In recent years, the market has registered a CAGR of 8 percent, yet Euromonitor predicts that the market will pick up due to higher disposable incomes and an increasing number of tourists visiting the region.

The number of beauty salons and nail salons is also predicted to grow rapidly over the forecast period, fueling an increase in consumer awareness of different products, as well as changing attitudes towards color cosmetics as everyday items, rather than for usage on special occasions.

In 2014, Estée Lauder Middle East maintained its leading position in the UAE color cosmetics market due to its broad product portfolio within the premium segment.

The company benefits from broad distribution across the country and a broad network of mono-brand boutiques for famous brands such as Mac and Bobby Brown.

Customer loyalty in color cosmetics in the United Arab Emirates remains very low, especially within the mass market, the report observes.

Leading brands advertise their products through in-store sales promoters. Furthermore, complimentary items when purchasing more than one product from the same brand are often expected by consumers, which Euromonitor predicts will lead to good growth for brands able to offer small gifts to their customers.