Business Categories Reports Podcasts Events Awards Webinars
Contact My Account About

6 Underrated Beauty Hubs Winning It Big Right Now

Published November 19, 2024
Published November 19, 2024
Troy Ayala

The global beauty industry has grown to a point where consumer demands for innovative, inclusive, and sustainable products are pushing the industry beyond its traditional and mainstream borders. While cities like Paris, Korea, Tokyo, and New York have long been recognized as beauty capitals due to their market-infiltrating prowess and GDP, the future of beauty also lies in regions that are often overlooked. Beauty brands are now being prompted to explore new horizons for product development and sourcing, due to demands for unique ingredients, indigenous beauty rituals, and environmentally conscious production.

These emerging markets are not only contributing to global beauty through their local ingredients and traditions, but are also pioneering some of the most innovative trends in the industry today. With the cosmetics beauty industry expected to reach a valuation of $758 billion by 2025, brands are increasingly looking toward untapped markets where opportunities for growth and innovation abound. In this evolving landscape, cities in Africa, Asia, South America, and Eastern Europe are driving trends—from clean beauty and sustainable packaging, to advancements in biotechnology and anti-aging solutions.

Additionally, local consumers in these markets are not only adopting global beauty trends but are also shaping them. As middle-class populations rise and e-commerce platforms expand, emerging beauty hotspots are offering distinct value propositions that align with the global push for diversity, sustainability, and innovation. These cities are breaking into the global beauty conversation by integrating cultural practices with modern beauty science, making them the new frontiers for beauty investors and industry insiders. Here are six cities that are at the forefront of this transformation, as well as the ingredients, brands, and market trends that make them the next big thing in beauty.

Riyadh, Saudi Arabia

Saudi Arabia’s beauty industry is experiencing rapid growth, and this is driven largely in part by the country’s Vision 2030 initiative, which seeks to diversify the economy and reduce its dependence on oil. As a result, Riyadh is becoming an increasingly important player in the Middle Eastern beauty market. According to Mordor Intelligence, the Saudi Arabia cosmetics products market size is estimated at $5.21 billion in 2023, and is expected to reach $5.64 billion by 2028, registering a CAGR of 1.6% during the forecast period (2023-2028). McKinsey data for MENA show that fragrance is one of the go-tos, and has projected sales of $5.4 billion by 2027. According to the BeautyMatter 2024: Middle East Beauty Market report, this growth is fueled by a combination of increasing consumer demand for high-quality beauty products, and the blending of traditional Middle Eastern ingredients with modern formulations.

One of the key trends in Riyadh’s beauty market is the use of indigenous ingredients like camel milk, black seed oil, and rose water. Camel milk, for example, is known for its high vitamin and mineral content, making it a popular ingredient in skincare products aimed at soothing and moisturizing the skin. Black seed oil, which has been used for centuries in Middle Eastern medicine, is gaining popularity for its anti-inflammatory and healing properties, making it a sought-after ingredient in both skincare and haircare formulations.

Riyadh is also home to a growing number of luxury beauty brands, such as Shiffa Beauty, which combines traditional Middle Eastern ingredients with cutting-edge skincare technology. The brand’s focus on holistic, organic skincare has resonated with both local and international consumers, particularly as demand for clean beauty continues to rise globally. The same applies to cosmetics brand Asteri, another Saudi Arabian brand breaking beauty stereotypes in the region. It has just opened its fourth stand-alone store in the region, and an innovation studio called Dalziel & Pow, which had previously worked with omnichannel beauty platform Tira, fragrance house Molton Brown, and wellness brand Maharishi Ayurveda. According to to Euromonitor International, big brands in the UAE such as MAC Cosmetics, Bobbi Brown, and Estée Lauder “saw slight declines in their value shares, due to the stronger competition from “smaller brands” like Huda Beauty, Charlotte Tilbury, and Fenty Beauty, which are gaining significant market share in Riyadh, thanks to their focus on inclusivity and catering to diverse skin tones.

The Saudi government’s focus on fostering entrepreneurship through the Vision 30 Initiative set up an ambitious target to increase the GDP contribution of SMEs—including those in the beauty industry—from 20% to 35%, underscoring its commitment to fostering a thriving entrepreneurial ecosystem in the region. The government’s support for female entrepreneurs, in particular, has opened up new opportunities for women, either by starting their own brands or by participating in beauty tech start-ups focused on innovation in product development and distribution, as research shows that its women are highly educated and control much of the wealth in the country. Its female entrepreneurs are estimated to have SAR45 billion ($12 billion) in cash holdings, with the female labor force participation rate doubling from 17.4% to 35.6% between 2017 and 2021. Riyadh’s unique combination of traditional ingredients, luxury beauty, and a rapidly growing consumer base makes it one of the most exciting beauty markets in the Middle East, with the potential to shape global beauty trends in the coming years.

Riyadh’s beauty retail environment is increasingly characterized by luxury and exclusivity. High-end shopping malls like Kingdom Centre and Riyadh Park house global luxury beauty brands like Chanel, Dior, and Estée Lauder are where the affluent elite shop for high-end products. Stores like Sephora and Wojooh are particularly popular, offering interactive retail spaces where consumers can test products and receive personalized beauty consultations. The rise of niche beauty brands like Olfactory, a luxury perfume house based in Saudi Arabia, and Asteri, reflects the growing interest in local, culturally significant beauty. Additionally, e-commerce platforms like Golden Scent are gaining popularity particularly as younger Saudi consumers look for convenience and access to global and local beauty brands.

Melbourne, Australia

Melbourne has emerged as a hot spot for clean beauty, thanks to its emphasis on sustainability, natural ingredients, and cruelty-free formulations. Australia’s beauty market is expected to reach $7.42 billion in 2024, and Melbourne is playing a crucial role in that growth. Melbourne is also home to brands like Go-To Skincare and Frank Body, which have gained global growth over time. These brands are emphasizing simplicity and transparency, and are using locally sourced ingredients like Kakadu plum, macadamia oil, and eucalyptus—all known for their antioxidant and anti-inflammatory properties.

Kakadu plum, in particular, is a star ingredient in Melbourne’s clean beauty scene. This ingredient boasts the highest natural concentration of vitamin C of any fruit in the world. This makes it a powerhouse for brightening and anti-aging skincare formulations, a trend that has caught the attention of both local and international consumers. Additionally, Melbourne-based brands are playing into sustainable packaging. Go-To Skincare, for example, offers a recycling program in partnership with TerraCycle, while Frank Body is known for its minimalistic, biodegradable packaging.

Due to its thriving wellness scene engineered by the city’s approach to sustainability and clean ecological factors, Melbourne beauty landscape's emphasis on holistic health has led to the rise of beauty brands that promote inner and outer wellness, such as The Beauty Chef, which offers ingestible beauty products like bio-fermented protein powders and collagen chewables made from probiotic-rich ingredients. This convergence of clean beauty, sustainability, and wellness is positioning Melbourne as a beauty hot spot that aligns with global consumer demands for transparency, efficacy, and environmental responsibility.

Melbourne’s retail landscape is a blend of high-end boutiques and indie beauty stores. Consumers shop at stores like Mecca Cosmetica, one of Australia's largest beauty retailers, known for carrying both luxury and indie brands like AMOREPACIFIC and Byredo. The city is also home to bustling stores like Chadstone Shopping Centre and Emporium Melbourne, both of which house global beauty names like Sephora. Beauty pop-ups, artisan markets, and concept stores like The Lab Organics in Fitzroy also offer consumers a personalized, boutique experience, showcasing Melbourne’s innovative and eco-friendly beauty products.

Lagos, Nigeria

Lagos is fast becoming the epicenter of Africa’s burgeoning beauty industry. As the most populous city in Africa’s largest economy, Lagos is not only the gateway to the Nigerian beauty market, but also the hub of West African beauty innovation. Although Nigeria’s beauty and personal care market is projected to reach $9.71 billion in 2024, Lagos, the country’s most populous and most commercial cities, is said to contribute up to 30% of the country’s GDP, thanks in part to a growing middle class and the rise of beauty brands that are redefining African beauty standards on a global stage. Unlike traditional Western beauty hubs, Lagos is fueled by indigenous ingredients that have been used for centuries in African beauty rituals. Shea butter, baobab oil, and moringa are increasingly integrated into both local and international product lines, thanks to their proven efficacy in moisturizing and anti-aging formulations.

Homegrown beauty brands like House of Tara, Zaron Cosmetics, and Arami Essentials are not only disrupting the local market but are also gaining traction internationally. House of Tara, for instance, boasts of being present in up to 25 states in Nigeria, and plans for international expansion, driven by demand for products tailored specifically to melanin-rich skin tones. Meanwhile, Lagos Fashion Week, a rising global fashion event, has become a platform for local beauty brands to showcase their innovation, further solidifying the city’s status as a beauty hot spot.

Moreover, the beauty scene in Lagos thrives on inclusivity. Brands are tapping into a diverse customer base that spans various skin tones, hair types, and beauty needs. This inclusivity is backed by Nigeria’s cultural diversity, where beauty ideals vary between ethnic groups. The city’s ability to balance cultural heritage with modern formulations is not only captivating local consumers, but is also attracting global beauty brands like L'Oréal and MAC Cosmetics, which see the city as a gateway to the entire African beauty market.

In Lagos, beauty retailing involves large malls like The Palms Shopping Mall and Ikeja City Mall, which house popular international brands such as MAC, Clinique, and Estée Lauder, catering to the city’s elite. However, the real growth lies in the rise of digital retail platforms such as BeautyRevNG and Beauty Hut Africa, which are expanding access to both local and international beauty products. Additionally, the Lekki Market and Balogun Market provide a vibrant, informal retail environment where consumers purchase beauty products, especially hair and skincare, from local vendors. Lagos is also seeing a rise in multi-brand beauty stores like Yanga Beauty, which curate a mix of indie African brands and international products in a more experiential, boutique-like setting.

São Paulo, Brazil

As the largest city in Brazil and the third-largest beauty market in the world according to Research and Markets, São Paulo is growing in popularity as a key player in the global beauty industry, following the US, China, and Japan. Brazil’s beauty market is projected to reach $33.14 billion in 2024, and $44.03 billion by 2029, growing at a CAGR of 5.85% during the forecast period (2024-2029), with São Paulo leading the charge. What sets this city apart is its rich biodiversity and the unique botanical ingredients native to the Amazon Rainforest, which have long been used in traditional beauty rituals but are now finding their way into mainstream beauty products.

Ingredients like açaí, cupuaçu, and Brazil nut oil are just a few examples of the powerhouse materials that are driving the rise of São Paulo as a beauty hot spot. Açaí has a high antioxidant content, making it a popular ingredient in anti-aging and brightening skincare products. Cupuaçu butter, too, possesses intense moisturizing properties, and is often compared to shea butter although it has superior water-retention abilities. Brazil nut oil is rich in omega-3 fatty acids, making it a favorite in haircare products designed to nourish and repair damaged hair.

São Paulo is also home to major beauty companies like Natura &Co and O Boticário, both of which have gained international recognition for their sustainability initiatives. Natura &Co, in particular, has built its entire business model around eco-conscious beauty, using sustainably sourced ingredients from the Amazon and maintaining carbon-neutral operations. The brand’s acquisition of Avon has further solidified São Paulo’s position as a global beauty hub, offering a unique blend of natural ingredients and ethical business practices.

São Paulo’s beauty retail environment is driven by both high-end shopping malls and local, street-level beauty markets. The Shopping Iguatemi and Shopping JK Iguatemi malls house international luxury beauty brands such as Chanel and La Mer, while local beauty giants like Natura and Granado operate both stand-alone stores and concessions within major retail spaces. São Paulo’s beauty consumers are increasingly leaning towards eco-conscious and vegan beauty products, with stores like The Beauty Box offering a curated selection of sustainable brands. Street markets and local pharmacies also play a significant role in the retail landscape, where budget-conscious consumers shop for more affordable beauty staples. Online beauty shopping is rapidly growing in Brazil, with Sephora Brazil and Beleza na Web becoming go-to platforms for young, digital-first consumers.

Istanbul, Turkey

Istanbul has a unique geographic location that serves as a bridge between Europe and Asia, and therefore a crossroad for beauty traditions from both continents. Turkey’s beauty and personal care industry is projected to grow by 4.18% (CAGR 2024-2028) and amount to a value of $7.57 billion according to Statista, with Istanbul emerging as the epicenter of this growth. The city is home to a diverse range of beauty brands that blend traditional Turkish ingredients with modern beauty science, offering products that cater to both the local market and an increasingly global audience. Makeup and cosmetics brand Flormar for example, has a 21% share in the color cosmetics market of Turkey, exporting to over 100 countries, and with a presence in more than 40,000 retail outlets, positioning them as a key player in the industry.

One of the most iconic ingredients in Turkish beauty is rose water, which has been used in skincare for centuries due to its hydrating, anti-inflammatory, and soothing properties. Brands like Atelier Rebul, with all kinds of beauty and personal care products that range from perfumes to hand soaps, have built their reputations on harnessing the power of rose water, alongside other local ingredients like sandalwood oil, coconut oil, olive oil, and argan oil, to create luxurious skincare and haircare products. Olive oil, in particular, is rich in vitamins A, D, E, and K, and is known for its deeply moisturizing and healing benefits, making it a staple in both traditional and modern Turkish beauty formulations.

Istanbul is also a leading destination for haircare innovation. The city is popular as the “hair transplant capital of the world,” drawing thousands of international visitors each year seeking cutting-edge hair restoration treatments. It is recorded that about 60,000 tourists visit Istanbul each year for a hair transplant. This booming haircare industry has fostered the growth of local brands and clinics that specialize not only in transplants, but also in advanced haircare products. Companies like Farmasi, one of Turkey’s largest cosmetics exporters, are developing shampoos, conditioners, and treatments that incorporate locally sourced botanicals known for their ability to strengthen and restore hair health, producing more than 2 thousand product types, with an annual production capacity of up to 500 million.

Furthermore, Istanbul’s beauty industry is embracing the global demand for clean beauty. Local brands like MaruDerm and The Purest Solutions are increasingly adopting natural, cruelty-free, and vegan formulations, with a focus on minimizing environmental impact. Turkish consumers are becoming more environmentally conscious, as research shows that they’re now adopting the use of environmentally friendly consumer goods like detergents. This shift is reflected in the growing popularity of eco-friendly beauty brands like Otacı, which emphasizes the use of herbal remedies and recyclable packaging.

In addition to its rich tradition of skincare and haircare, Istanbul is a rising player in the fragrance industry, with the general country’s market value worth up to $1.32 billion. The city’s history as a trading post along the Silk Road has given it access to a wide range of exotic spices, flowers, and herbs, many of which are used in local perfumes. Brands like Nishane are gaining international acclaim for their artisanal, niche fragrances that incorporate rare and locally sourced ingredients such as Turkish rose and saffron.

Istanbul’s beauty retail landscape includes iconic malls like Grand Bazaar and Spice Bazaar, which draws consumers looking for handcrafted beauty products, including soaps, oils, and fragrances made with local ingredients like rosewater and olive oil. On the other hand, shopping malls like Zorlu Center and İstinye Park house global beauty retailers such as Sephora and Douglas, offering international products alongside high-end Turkish brands like Farmasi. Atelier Rebul, a Turkish apothecary, is gaining popularity for its in-store experience, which blends modern skincare with traditional Turkish ingredients in a luxurious retail environment. E-commerce is also booming, with platforms like Trendyol offering a wide array of beauty products, appealing to a younger, digitally savvy audience.

Warsaw, Poland

Poland’s beauty and personal care industry is projected to generate a revenue of $5.72 billion in 2024, with an anticipated annual growth rate of 3.52% (2024-2029). This has made it one of the fastest-growing industries in Europe, and Warsaw is at the heart of this growth. One of the key drivers of Warsaw’s beauty industry is its focus on biotechnology. Companies like Bowil Biotech, for example, use bacterial fermentation to produce biocellulose for various medical applications, while Polish brands like Inglot Cosmetics and Eveline Cosmetics are incorporating cutting-edge ingredients like bioactive peptides and plant stem cells into their formulations. These ingredients are particularly popular in anti-aging products, which are a growing segment of the Polish beauty market. Bioactive peptides, for example, are known for their ability to stimulate collagen production and improve skin elasticity, making them a favorite in high-performance skincare products.

In addition to biotechnology, Warsaw is home to a number of brands that are championing natural, organic ingredients. Birch sap, which is native to Poland, for example, is increasingly used in skincare products for their hydrating and antioxidant properties. Birch sap, in particular, has gained popularity for its ability to soothe and rejuvenate the skin, while elderflower is prized for its anti-inflammatory and brightening effects. These ingredients are often incorporated into clean beauty formulations, which are becoming increasingly popular among Polish consumers.

Warsaw is also a hub for innovation in sustainable beauty packaging. Local brands like Senelle Cosmetics are leading the charge in developing eco-friendly alternatives to traditional plastic packaging, with many companies adopting biodegradable, refillable, or recyclable materials. This focus on sustainability is being driven not only by consumer demand, but also by European Union regulations that are pushing for greener practices across all industries.

In Warsaw, department stores like Galeria Mokotów and Złote Tarasy house international beauty giants like Sephora and Douglas, alongside more localized Polish beauty brands such as Ziaja and Inglot. Beauty shoppers in Warsaw are particularly drawn to pharmacies like Super-Pharm, which blend wellness with beauty, providing a holistic shopping experience. The emphasis on natural and organic ingredients has driven the rise of niche concept stores such as Hagi, offering products that cater to Poland’s eco-conscious consumers. Polish beauty consumers are also highly tech-savvy, and online shopping platforms like Cocolita and EZebra have exploded in popularity, providing consumers with easy access to a wide array of international and local brands.

The global beauty industry is no longer confined to the traditional hubs of New York, Paris, or Seoul. Emerging beauty hot spots like Melbourne, São Paulo, Lagos, and Riyadh are redefining what it means to be a beauty capital. These cities are not only shaping new beauty trends, but are also becoming influential players in the business of beauty by leveraging local ingredients, cultural traditions, and tech-driven innovations to cater to diverse consumer bases.

×

2 Article(s) Remaining

Subscribe today for full access