By Frank Garriba, Wachira Kigotho, Ceaser Mhukahuru, Bill Corcoran, Tricia Oben, Matthew Newsome and Hanna Lange-Chenier
One of the biggest expanding markets for cosmetics and personal care products is sub-Saharan Africa. A key exporter to the region, L’Oréal has estimated that the overall African beauty and personal care market generated €6.93bn (US$8.61bn) in 2012, growing at between 8% and 10% annually, compared to a global market growth rate near 4%. It is expected to reach €10bn in 2017, predicted a L’Oréal report, drawing on research from Munich-based Roland Berger Strategy Consultants. Market analyst Euromonitor International predicts a slower 5% annual growth rate for many countries in the region, but still predicts the market will double in size over the next decade. South Africa and Nigeria represent the biggest markets, valued at €2.97bn and €1.57bn respectively in 2012, according to Euromonitor. A 2013 report from Roland Berger also noted that “sales of beauty care products are likely to be stimulated by the young population, as 60% of Africans are [aged] under 25 years”. L'Oréal is focusing on Nigeria and South Africa; Unilever on Kenya and Ethiopia; and Procter & Gamble (P&G) is expanding across the continent, said the report.
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