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Retail

Perfume and incense shop feasibility study

Latest regulatory change: 2022 · reviewed 2026-11-05

A shop selling perfumes, oud and incense, possibly with custom perfume blending.

  • SAR 6.8 billionmarket size in 2023[4]
  • 4%expected annual growth[4]
  • 1,263perfume manufacturing registrations at end-2023[5]

Latest regulatory and market changes

  1. 2017The third phase of the feminisation and Saudization decision covered shops selling women's perfumes.[1]
  2. 2019The Saudi Food and Drug Authority (SFDA) warned about perfumes containing a banned substance and not listed in the electronic cosmetics listing system.[2]
  3. 2022The authority shut down a facility in Riyadh mixing and filling perfumes and oils without meeting Good Manufacturing Practice (GMP) requirements, and halted its production line.[3]

Why now

  • New small Saudi perfume brands keep appearing.[4]
  • Women's empowerment and tourism growth are expected to support the perfume market, and perfume manufacturing registrations reached 1,263 at the end of 2023.[5]

SAR 6.8 billionSize of the Saudi perfume market in 2023, with expected annual growth of up to 4%.[4]

The idea and business model

A retail shop selling ready-made perfumes, perfume oils, oud and incense, and possibly blending custom fragrances. Revenue comes from the sales margin, custom blends, gifts and online sales.

Model: Site-based retail

Project economics

Revenue formula

Number of customers×Average invoice value×Selling days

Sales channels

  • Shop
  • Online store
  • Gifts, occasions and exhibitions

Largest cost items

  • Cost of goods and raw materials
  • Rent in a commercial location
  • Sales staff salaries
  • Packaging and marketing

Decisive indicators we measure

  • Average invoice value
  • Gross margin
  • Stock turnover
  • Share of returning customers

Relevant authorities

  • Saudi Food and Drug Authority (SFDA): listing of cosmetics and perfumes, and manufacturing requirements if blending or filling takes place
  • Ministry of Human Resources and Social Development (HRSD): Saudization and feminisation of women's perfume shops
  • Ministry of Municipalities and Housing (MoMAH) via Balady: shop licence
  • Ministry of Commerce: Commercial Registration (CR) and consumer protection

What needs your attention

  • Products not listed with the SFDA expose the shop to product withdrawal and penalties.
  • Blending and filling perfumes may fall under Good Manufacturing Practice requirements.
  • Imports are far higher than exports, so costs are affected by importing.

What a Perfume and incense shop study calculates for you

  • Sales mix between ready-made perfumes, custom blends and oud
  • Cost of high-value stock
  • Listing and manufacturing requirements if blending takes place
  • Seasonality of Ramadan and Eid
  • Break-even point in daily invoices

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. «العمل» السعودية: 87% التزام محلات المستلزمات النسائية بقرار التأنيث والتوطينالشرق الأوسط · 2018-08
  2. «الغذاء والدواء» تحذر من 6 منتجات عطور تحتوي على مادة محظورةعاجل · 2019-02
  3. ضبط معمل عطور في الرياض لمخالفته اشتراطات أسس التصنيع الجيدهيئة الغذاء والدواء · 2022-02
  4. 4% نمو سنوي بسوق العطور السعوديةالوطن · 2024-12
  5. The rise of the Saudi perfume marketArab News · 2024-05

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.