Unilever buoys $1.6m personal care industry with new liquids factory

Nigeria’s personal care/ cosmetics industry, estimated at $1.6 million, has received a big boost as Unilever opens a new liquids/skin cleansing  factory at Nigeria’s burgeoning industrial hub- Agbara, Ogun State.

The factory now buoys the sub-sector, which grosses an annual revenue of N258.90 million and places it on the path of competiveness. Unilever’s investment comes on the heels of a recent announcement by Paul Polman, global CEO, that the firm would invest $200 million in the country within the shortest possible time.

Bruno Witvoet, executive vice president, Unilever Africa, said the $13 million skin cleansing and home care plant commissioned was part of the additional $200 million investment which Unilever proposed for Nigeria by Unilever’s Global CEO, Paul Polman in September this year.

According to Witvoet,  Unilever’s investments and expansion in Nigeria since 1923 was due its long-standing confidence in the country’s economy.

He however submitted that the establishment of washing liquids in Agbara was in accordance with Unilever Sustainable Living Plan, globally.

“in line with the Unilever’s Sustainable Living Plan, we have set ourselves a goal to help more than a billion people across the world to improve their hygiene habits.”

Nigeria’s personal care industry has continued to be driven  by population estimated  at 173.6 million (World Bank and the United States Census Bureau), rise in disposable income, internet-based advertising which influences spending on beauty, growth in retail outlets and competition, among others.

“Competition and advertising were major factors in the performance of beauty and personal care in 2013,” said Euromonitor International, a global research firm, in its recent research on the 2013 performance of Nigeria’s personal care industry.

“With the increase in the construction of shopping malls in the country across different cities, hypermarkets and supermarkets are continuing to gain share of distribution in beauty and personal care,” Euromonitor said.

Key players in the industry are ramping up investments to tap into the better outlook and prospects in the industry. Procter& Gamble (P&G) is investing $300 million at its plant located at Agbara, Ogun State, to ramp up production of Always, Ariel, Bonux and Pampers, among others.

PZ Cussons, also a key player, has also invested $130 million in the country,  according to Richard Harvey, chairman, PZ Cussons, United Kingdom.

The Manufacturers Association of Nigeria said in its 2013 sector review that players in this sector lamented the negative effect of double regulation by the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON). The association said players complained about high charges for the SON’s Mandatory Conformity Assessment Programme (MANCAP).

The beauty and cosmetics industry is divided into skin care, hair care, make up, fragrance and others.

The global beauty industry generated $35 billion in 2010, having recorded a yearly growth in excess of four percent for four preceding years.

Skincare had a market share of 33 and 34 percent in 2011 and 2012 respectively, while hair care had 25 and 24 percent in 2011 and 2012. Make-up had a market share of 17 and 16 percent in 2011 and 2012  while fragrances had a market share of 17 and 13 percent in 2011 and 2012 respectively, Real Sector Watch gathered.

ODINAKA ANUDU

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