Zeze Oriaikhi-Sao, Malée, Founder06.01.23
According to a Deloitte study, Africa’s middle class has tripled during the past 30 years. One in three people are considered to be living above the poverty line—but not among the wealthy. The current trend suggests that the African middle class will grow to 1.1 billion (42%) by 2060. African economies are growing; 7 of the 10 fastest growing economies in the world are African. Wealth is trickling down and Africa now has the fastest growing middle class in the world, according to Deloitte.
Personal hygiene is no longer a luxury for the African consumer but a necessity. Personal care and toiletries are in high demand and fall into the following product segments such as skin care, hair care, color cosmetics, fragrances and others; bathing soaps, toothpaste, shaving cream, hair removal preparations (depilatories), antiperspirants, sunscreen and deodorants.
With distribution channels both offline and online, the largest markets on the African continent span from North to South, East to West; South Africa, Nigeria, Egypt, Kenya and the rest of Africa.
Trends Shaping Beauty
The African beauty and personal care market is expected to increase by $5.28 billion from 2021 to 2026 and the market’s growth momentum will accelerate at a CAGR of 6.5%, according to a recent Technavio study.Following the covid-19 pandemic, several key drivers, trends and new challenges have emerged within the beauty market. As the African consumer has become more conscious about personal hygiene and skin care, there is increasing demand for products that include the latest developments and innovations, and take into account consumer preferences. These preferences include demand for natural products, local ingredients and personalized formulas.
Let’s take a closer look at these trends.
Natural and Organic Products. Like consumers in other parts of the world, the African consumer is conscious of what they are eating as well as putting on their skin. Healthy and sustainable living is influencing their buying preferences and an increasing number of African consumers now opt for natural and organic cosmetic products.
As the awareness continues to grow around the benefits of indigenous raw materials and some age-old products, the scientific and proven benefits of using natural ingredients such as shea butter, aloe vera and black soap, which are native to Africa and known for their nourishing and healing properties have increased in popularity in recent years. The African consumer is increasingly becoming more concerned about the impact of chemicals on their health and the environment. This is leading to a shift toward eco-friendly and sustainable personal cleanser cosmetics products.
For L’Oréal, Africa is a key market. Its research center is Africa gives the world’s biggest beauty company an edge through research and innovation. Company executives maintain that their portfolio is focused on raw materials, actives and formulas that are inline with sustainability goals.
Local Ingredients. The focus on natural and organic products goes beyond nutrition considerations. There is a growing trend of incorporating local indigenous African ingredients in formulations. Demand is rising for product transparency by the African consumer. There is also growing interest in the origins, traditional herbal remedies and healing properties of African botanicals. Indigenous ingredients such as baobab oil, marula oil and moringa oil are gaining in popularity and are finding their way into more personal care formulations because of their skincare benefits.
This preference for products that highlight and celebrate African heritage and culture is lifting local beauty and cosmetic brands who are not only promoting sustainability but support local communities, and add a unique selling proposition to personal cosmetics products in Africa.
Customization & Personalization. Most notably, product innovation and product line extensions are driving growth in the form of customization and personalization. Africans now wants tailored solutions that cater their concerns, skin types, hair types and preferences. As personalization and customization have become significant trends in the cosmetics industry worldwide, Africa is no exception. Brands are leveraging technology and data-driven insights to offer personalized skin care solutions, including cleansers that target specific skin concerns such as acne, hyperpigmentation and dryness.
E-commerce, Digital Marketing. Africa is witnessing a rapid growth in online sales of personal cleanser cosmetics products. Brands use e-commerce platforms and social media channels to reach out to consumers, provide information about their products and facilitate online purchases. African consumers are increasingly relying on online reviews, influencers and social media content to make informed decisions about personal cleanser cosmetics products. Brands are leveraging digital marketing strategies to effectively engage with their target audience.
A local brand African brand Lelive, founded by South African influencer Amanda Dupont, prides itself on using clean and sustainably-sourced African botanicals. The Lelive range is built by an online community based on their collective skincare concerns.
“The range was developed by expert formulators alongside our dedicated community on social media to create skincare that’s truly made by Africa,” says Dupont.
Major Players & Outlook
Major international players such as Beiersdorf, Coty, Unilever, L’Oréal, Revlon, Estée Lauder, P&G, Tiger Consumer Brands and J&J hold the largest market share on the continent due to their successful business strategies utilizing organic and inorganic growth strategies to compete in the market such as acquisitions and product innovation.But the lion’s share of growth comes from just one country, according to Technavio. “Fifty-three percent of the market’s growth will originate from South Africa during the forecast period,” according to Technavio’s Beauty and Personal Care Market in Africa by Product and Distribution Channel - Forecast and Analysis 2022-2026.
Online beauty sales are expected to grow at a compound annual growth rate of nearly 15% through 2026. For the same period, natural and organic personal care sales will grow more than 7% a year. These growth figures make Africa fertile ground for continued growth and opportunity for international and local brands alike.
Zeze Oriaikhi-Sao
Malée, Founder
office@maleeonline.com
Zeze Oriaikhi-Sao is an entrepreneur, influential speaker, sought-after brand consultant and freelance columnist with a focus on Innovation, sustainability and leadership in the cosmetics, luxury goods and start-up industries. As the founder of Malée, Africa’s first global luxury fragrance and body care brand, an advisory board member at Innocos, the world beauty innovations summit, Oriaikhi-Sao has established herself as a leader in the African-made luxury goods market. She has been featured on CNN, The Telegraph and The Daily Mail. She hosts the podcast Third Culture Africans, and inspires a vast audience with entrepreneurial and lifestyle Insights at zezeonline