MEADFA on travel-retail opportunities in the Middle East and Africa
As more beauty and personal care brands expand into the Middle East and Africa markets, the Middle East & Africa Duty Free Association (MEADFA) said it’s keen to work closely with these companies in the travel-retail sector, but that currently there is a “gap” in terms of cosmetics companies involved.
At TFWA Global Summit in Cannes, the MEADFA President, Sherif Toulan, spoke generally about the future of travel-retail in this region sector and noted that “despite geopolitical challenges in the region” travel-retail sales “reached record levels in the region this summer” (2024).
Toulan shared that sector sales were up by 7.4% in Africa and up by 6% in the Middle East this year.
Doha’s Hamad International airport saw a record number of passengers this summer, while Dubai International Airport, which Toulan said has always been considered the key airport in the MEA region, also saw record passenger numbers this year.
Saudi and Ethiopia: "markets to watch"
He said that the Saudi Arabian government is ploughing money into tourism and infrastructure development because it has a strong belief in the future of tourism for the country.
MEADFA is set to hold a conference in Abu Dhabi between 17-19 November and Toulan said that numbers of attendees have “doubled compared to other years.”
Toulan pointed out that two of the most exciting markets to watch here will be Saudi Arabia and Ethiopia.
He also highlighted the need for companies to work together collectively in a bid to build the sector within this region cannot work in a vacuum and will “work better if we work together collectively.”
This year, MEADFA also held its first Sub-Saharan Africa conference in Dakar, Senegal, in an “effort to promote the duty-free market on the continent.”
Obstacles faced in MEA travel-retail market
As the travel-retail sector in this region can still be subject to concerns with counterfeit products, the organisation said it is “putting a lot of emphasis on being a secure and highly regulated retail channel” to assure shoppers of the quality of what they are buying.
Middle East CEO at the travel-retail company Aer Rianta and board member of MEADFA Rob Marriott, noted that “advocacy is especially important for this region” in terms of travel-retail.
He revealed that there is a steering group for the region to ensure governments recognise the importance of this industry and to work with local airports to develop the travel-retail sector.
He also highlighted that the WHO Illicit Trade Protocol will be launched in 2025, and that there are false claims that “our industry is a driver of this problem.”
The MEADFA board said that it will now focus on sustainability too and that it will create a charter for ESG action and “work together to create more sustainable products.”
It highlighted that the task will not be easy, but that it needs to happen and that all brands and travel-retail companies in the region will need to work together.
According to another board member, Roger Jackson, MEADFA has tripled its member numbers in the past four years, but there is a noticeable lack of cosmetics brands working with MEADFA to help develop better travel-retail in the region.
“I don’t know the reasons for this, but we would like to change it,” he said, while urging cosmetics brands to join the organisation.
