Nigeria’s beauty products, brands market to hit $35bn by 2021
Nigeria’s beauty products and brands market is projected to hit $34.5 billion by 2021, up from $30 billion in 2016 on the back of a growing middle class and increasing purchasing amid an economy taking sluggish steps out recession, stakeholders have said.
The beauty industry players and keen watchers in Nigeria and the Middle East have expressed optimism over the outlook for the beauty market in Africa’s most populous nation, stressing that the increase of both local and global players in the industry will boost Nigeria’s gross domestic product.
Many experts have contended that the country boasts of opportunities in beauty products, especially with abundance of raw materials, noting that the right policy environment is critical to help the sector contribute meaningfully to the GDP.
Nigeria’s beauty and products market’s fundamentals remain strong. Of Nigeria’s 180 million people, about 49 percent is female, and of this, 53 percent fall within the 16 – 55 age bracket. These ladies enjoy using beauty products which are seen as an essential part of normal grooming. Nigeria’s beauty industry is said to have grown by 35 percent between 2009 and 2014 according to a BusinessDay, report.
Euromonitor, a market intelligence firm, in market a survey centred on the beauty and personal care market in Africa’s largest economy, valued it at $595.8m in 2011, up from $439.8m in 2006. It predicts that by 2016 Nigeria’s young yet increasingly sophisticated population will drive industry sales to $620.2m. Bath and shower gels ($240m in sales in 2011), skin care ($88m) and hair care ($79.9m) products dominate the industry.
Speaking at a road show in Lagos organised to highlight the opportunities of the 23rd beauty world fair, which is expected to host industry players in Dubai May next year, experts including Monica Eimunjeze, Director, Registration and Regulatory Affairs, at the National Agency for Food and Drug Administration and Control (NAFDAC), Abdelrahman Kurdieh, Regional Brand Development Manager, Messer Frankfurt Middle East, and others tasked Nigerians to take advantage of the fair to speed up the growing sector.
Monica Eimunjeze explained that the next edition of leading international trade fair for beauty products, hair, cosmetics, fragrances and wellbeing will boost the sector’s contribution to the gross domestic product.
Eimunjeze, noted that the number of small and medium scale enterprises in the sector has been on the increase industry, adding that the agency was committed to addressing players challenges.
According to him, the fair, dated May 8 – 10, 2018 and planned to hold at Dubai International Convention Center and Exhibition Center hosted about 1,568 exhibitors in 2017 and had 41,898 visitors.
While stressing the need for Africans to attend the event as exhibitors, Kurdieh said: “Visitors numbers from the African continent continue to progress with a growth of over 300 per cent since 2014. In 2017, they represent 5 percent of our total visitors.
He stated that the exhibition would showcase six basic product group, which include hair, nails and salon supplies, cosmetics and skincare, machinery, packaging and raw materials, personal care and hygiene, fragrance compounds and finished fragrance as well as natural & organic.
He added that the company has also introduced a business matchmaking programme to facilitate business connections between exhibitors and visitors.
“The business matchmaking programme is a vital tool for exhibitors and visitors pre-show, which allows them to efficiently set their meeting agendas for maximum benefit – it’s about meeting the right people in the right place at the right time, “ Kurdieh said
Leveraging information available on House of Tara’s website, a premier beauty company in Nigeria, Kudirat Fashola, owner of the popular Nigerian retail chain Kuddy Cosmetics, predicts the country’s color cosmetics market – valued at $26.2m in 2011 – will be a major growth area as people “want to look their best” in urban environments.
Emmanuel Nwakanma, chair of the Cosmetics Manufacture & Ethics Association of Nigeria, said the sector has been transformed in the last five years. “The cosmetics industry has achieved substantial growth, from a few local manufacturers to increasing participation by foreign brands.”
A study conducted by Forbes, found that among the six women who are considered as emerging female entrepreneurs in Africa, two started their businesses in the beauty industry. Being aware of the large space in the cosmetics market, Louisa Kinoshi, a makeup enthusiast, founded BeautyRevNG.com. It is an e-commerce and online community for African makeup artists, beauty bloggers and makeup enthusiasts, and it offers young women an easier way to access local and international brands via laptops and mobile phones.
STEPHEN ONYEKWELU