JUNE 1, 2023
African Beauty and Personal Care Market: Projected Growth and Trends
The African beauty and personal care market is projected to expand by approximately $5.28 billion from 2021 to 2026, as stated by Technavio. The market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 6.5% during this forecast period. This growth trajectory is set to gain momentum, driven primarily by product innovation and the extension of product lines. The market is experiencing heightened demand for inventive products with advanced functionalities, prompting manufacturers to prioritize the development of innovative offerings that cater to evolving customer preferences. Moreover, manufacturers are directing their efforts towards expanding their existing product portfolios by introducing new beauty and personal care items that align with consumer needs. The surge in disposable income among consumers has notably bolstered their purchasing power, thereby providing an additional impetus for market expansion.
Technavio has introduced its latest market research report titled "A Study of the Beauty and Personal Care Market in Africa." The segmentation analysis of this market divides it based on products (skincare, hair care, color cosmetics, fragrances, and others) and distribution channels (offline and online).
Notably, during the forecast period, the skincare segment is poised to claim a substantial share of the market's growth. This category encompasses two primary segments: face skincare products and body skincare products. Products like anti-aging skincare items, moisturizers, skin-brightening formulations, and wrinkle removers fall under this segment. The demand for high-quality, value-added, and affordable skincare solutions is substantial. The rising awareness of skin health has fostered an increased preference for natural and organic skincare alternatives. Additionally, factors such as rising disposable income, growth in the middle-class population, urbanization, and robust advertising and promotional efforts further fuel the growth of this segment.
Prominent Trends Shaping the Market
A prominent trend influencing the market is the emergence of beauty and personal care products formulated with natural ingredients. The heightened awareness regarding the adverse effects of toxic chemicals present in traditional beauty and personal care products has led to a surge in demand for naturally-derived alternatives. Consequently, manufacturers are dedicated to producing beauty and personal care items devoid of harmful elements like parabens, toluene, formaldehyde, artificial fragrances, and other detrimental compounds. This shift is evident in the efforts of hair care and color cosmetics manufacturers, who are focusing on creating products that resonate with consumers seeking natural ingredients. This trend is expected to amplify the demand for beauty and personal care solutions containing natural components throughout the forecast period.
Primary Challenges Affecting Market Growth
A significant challenge that the market faces pertains to the prevalence of counterfeit beauty and personal care products. These counterfeit items are often contaminated with harmful substances like petrochemicals and bacteria, posing health risks to consumers. The relatively low production costs associated with these counterfeit products result in reduced pricing, impacting the sales strategies of major vendors. The advent of e-commerce platforms has further facilitated the proliferation of counterfeit products. Distinguishing between authentic and fake products is challenging for consumers, compounding the issue. These factors collectively hinder market growth over the forecast period.