Riyadh Pharma’s new factory to tap local cosmetics demand

Riyadh Pharma’s new factory to tap local cosmetics demand
Updated 06 October 2013

Riyadh Pharma’s new factory to tap local cosmetics demand

Riyadh Pharma’s new factory to tap local cosmetics demand

Medical and Cosmetic Products Co. (Riyadh Pharma) plans to build the first plant to manufacture cosmetic products in the Kingdom in a five-year period, a senior company official was quoted as saying in a recent local media report.
Dr. Shafiq Salah, director general of the company, said some of the Saudi staff could be trained abroad to gain additional skills.
Saudi women will have a pioneering role to work in the proposed factory as women are the key drivers of the cosmetic market growth in the Kingdom, he said.
Based on data, spending by Saudi women on cosmetic products is expected to hit nearly SR2 billion by 2015, and the Saudi market is the biggest cosmetics market in the Middle East which is estimated at more than SR60 billion annually, he was quoted as saying.
He said the creation of Saudi Food and Drug Authority (FDA) had made a positive impact on the quality of cosmetic items available in the Saudi market.
FDA’s non-dependence on the specifications of US and Canadian Food and Drug agencies has minimized the entry of (foreign origin) harmful cosmetic products into the Saudi market, he said.
FDA has used to dispatch technical teams to those countries to take and analyze samples of body creams and cosmetics before giving clearance to enter the Saudi market, he said.
Although the process sometimes takes six months, it is necessary to ensure the quality of products and their relevance to the local market, he added.
He said many of cosmetic products might have been customized to suit US and European citizens and such products might not provide the required results if used by people in the Kingdom.
According to earlier studies, Saudi Arabia has ranked first among GCC nations in consumption of skin and hair care products.
Saudi Arabia and the UAE were among the world’s fastest growing cosmetics markets, the studies said.
Cosmetics investors say each Saudi woman spends an average of SR14,000 per year on cosmetics.
The sales of skin care products in the Kingdom reportedly achieved $397.2 million (SR1.48 billion) in 2010 and are expected to reach $502.9 million (SR1.88 billion) in 2015, an increase of 26 percent, experts said.