The last few months have marked an extraordinary period for the beauty industry of Pakistan, which generated $4.62 billion in 2022 and is expected to grow at a 2.77% annual rate over the next three years.
According to Arusha Imtiaz, Chief Commercial Officer of Daraz Pakistan, one of the country’s top e-commerce platforms, this growth curve also reflects a burgeoning consumer appetite for quality local products.
She further shared that the Health & Beauty category at Daraz has seen a significant 47% year-on-year growth in 2022, out of which the top-performing local beauty brands have seen an uplift of up to 6X.
This highlights the promising potential of the Pakistani beauty industry, which has in recent years been coming to its own and building its own dedicated customer base due to being able to provide high-quality products at competitive prices.
Brands such as Conatural, Saeed Ghani, Jenpharm, Chiltan Pure, Olim Naturals, and MEC have been leading the share of local beauty brands on Daraz.
The rise in beauty consciousness, amplified by the outreach of social media, has played a significant role as well. Platforms such as Instagram, Facebook, YouTube, and TikTok have become pivotal in this cultural shift. Brands are using Instagram stories, Reels, and posts to highlight product features, conduct live demonstrations, and share user-generated content.
Instagram influencers also play a significant role in product endorsements and amplifying trends.
YouTube has revolutionized the beauty industry with its tutorial and review-centric content. Beauty vloggers, influencers, and makeup artists share video content ranging from makeup tutorials, skincare routines, product unboxing, and reviews. Consumers often turn to these resources to understand product usage and effectiveness before making a purchase.
TikTok, with its rapidly growing popularity, especially among younger audiences, has become a powerful platform for beauty trends and viral challenges. Its short, engaging video format is ideal for quick beauty tips, mini-tutorials, and showcasing before-and-after transformations.
The explosion of information available on social media platforms has not just educated consumers but also fuelled their demand for quality, homegrown beauty products, subsequently driving the unprecedented growth of local beauty brands on platforms like Daraz.
Pakistani consumers, now more informed than ever, recognize the benefits of products such as sunscreen, toner, and moisturizer. They also have a growing awareness of potent ingredients such as hyaluronic acid, niacinamide, and vitamin C, and how they can be incorporated into a healthy skincare routine.
According to McKinsey’s report on the beauty market in 2023, e-commerce is projected to maintain its position as the fastest-growing sales channel for the beauty segment, with an annual growth rate of 12 percent between 2022 and 2027. This growth is in line with the global beauty market, which generated approximately $430 billion in revenue last year.
The beauty industry continues to demonstrate resilience, thriving across all categories despite economic crises and macroeconomic challenges.
In Pakistan, e-commerce platforms such as Daraz have played a crucial role in empowering small local beauty brands. These platforms have become launchpads for these brands, offering them an opportunity to reach a wide customer base throughout the country.
Daraz, as an online marketplace, has essentially democratized the beauty industry, providing a level playing field where small businesses can compete alongside established players. This has led to increased accessibility and exposure for local beauty brands, allowing them to showcase their products and expand their reach in the market.
In the past year, the number of local brands within the beauty category on Daraz has increased significantly, pointing to a healthy, competitive, and vibrant market. This has created an exciting space for innovation, where homegrown brands continually raise the bar and redefine industry standards.
Interestingly, the growth of the local beauty industry has also resulted in a shift in the gender dynamics of consumers. While the market has traditionally been female-dominated, there has been a notable rise in male consumers showing an interest in personal care and grooming products. This has expanded the target demographic for these products and presents a unique opportunity for male-centric brands to thrive.
Daari Mooch, for instance, has experienced a remarkable 127% uplift on Daraz during the last six months, indicating the growing demand for male-focused beauty offerings.
As the beauty industry in Pakistan continues to evolve, it is crucial for marketers and businesses to adapt their strategies accordingly. This includes harnessing the power of e-commerce platforms like Daraz to reach a wider audience and staying attuned to the changing preferences of consumers.
By embracing innovation and inclusivity, both local and established brands can capitalize on the immense potential of the beauty market, creating a dynamic landscape that caters to the diverse needs and aspirations of customers.
