Page 74 - EXPORT GUIDE 2 AFRICA

Beauty and personal care
MARKET IN AFRICA

Africa, The New 'Eldorado' For Beauty, Cosmetics & AFRICAN CONSUMERS' ARE CRAVING
Personal Care Players TAILORED QUALITY PRODUCTS, BUT STILL
AFFORDABLE
African consumers have long been asking
A FAST DEVELOPING MARKET, LIKELY TO BE FUELED ON THE LONG-RUN for products adapted to their hair, skin and

With a fast growing economy of €1.5 trillion An increasing urbanization. Cities attract body speci cities. As stated by Philippe
in 2012 and a population forecast of 1.2 and concentrate about 40% of the African Ra ray, previously Managing Director at
billion by 2017, Africa and especially population and are expected to exceed 500 L'Oreal South Africa: "Africa remains a
Sub-Saharan Africa, draws attention from all million individuals by 2016. This urbaniza- largely untapped market where consumers
Consumer Goods players. African comprises tion represents a positive trend for the are screaming out for quality products
7 out of the 10 fastest growing economies in Beauty and Personal Care market, since adapted to their speci c needs".
the world. As an illustration, some African urban consumers are wealthier (urban In terms of make-up for example, African
markets like Ghana and Rwanda, have been incomes per capita are on average 80% skin requires darker shades than make-up
growing faster than the Asian "tigers" in ve higher than those of countries as a whole, lines traditionally o er. Make-up also needs
of the past seven years. And when it comes according to Canback Global Income Distri- to be more resistant to heat.
to beauty and personal care (BPC), the bution Database), their spending trend is Di erent needs also exist in terms of skin
African market is expected to double over twice as fast as rural spending and they are care, as anti-ageing products for African
the next decade with annual growth rates more easily reached by brands thanks to consumers primarily aims at tackling dark
ranging from 5% to many multiples. their concentration. spots and uneven complexion, whereas
For L'Oréal, Africa and the Middle-East anti-ageing products for Western women
According to Euromonitor, in 2012, South represent the last remaining continent to aims at tackling wrinkles rst.
Africa and Nigeria were the biggest person- explore and conquer, with a strong will to And in terms of hair care, matters besome
al care and beauty markets in the continent accelerate on-going development. Africa more complicated since African hair strong-
– valued at €2.97Bn and €1.57Bn respective- will have a major role to play in achieving ly di ers from Caucasian or Asian hair but
ly – but the growth story is increasingly the "1 billion extra consumers" targeted by also varies throughout the African continent
pan-African. This growth is much likely to be the Group. Amongst growing African itself. Jennifer Cromie, Unilever's R&D
fueled on the long-term thanks to the markets, L'Oréal decided to focus its e orts category director for personal care in Africa,
following drivers: on few selected countries such as Kenya, explains that "the biggest challenge for
An exploding population. As shown by Egypt, South Africa or Nigeria. In these African women is getting a comb through
the United Nations World Population countries, cosmetic products consumption their hair in the morning. That can be physi-
Prospects, Africa's population is the world's per inhabitant is 10 to 20 times lower than in cally painful".
fastest-growing population and is expected mature countries, leaving a large room for BEAUTY AND
to account for more than 40% of world growth. "Soon, emerging countries will
population growth in 2030. This growing become our rst market, before the United PERSONAL CARE
population, set to double over the next 40 States and Western Europe", says Jean-Paul The African beauty market
years, represents a very attractive consumer Agon, CEO of L'Oréal Group. To support this is expected to double over
base for all major beauty brands. In rising importance of Africa in L'Oréal strate- the next decade 10 YEARS
addition, sales of beauty care products are gy, Geo Skingsley was recently appointed
likely to be stimulated by the young popula- Head of the Africa Middle East zone, a
tion as 60% of Africans are under 25 years. position that did not exist before. 60% OF AFRICAN POPULATION IS UNDER 25,
The fastest growing middle class segment For Laurent Philippe, P&G Group SHOULD REACH 700 MILLION
in the world. As de ned by the African President of Central & Eastern Europe, 700
Development Bank as "anyone who spends Middle East and Africa, the continent of 603 650
between $2 and $20 a day in purchasing- Africa and especially Sub-Saharan Africa is
power parity terms", the bank estimates that the company's "newest opportunity". He
more than 34% of Africans (more than 300 points out the attractive perspective of a
million people) t this description and will vast consumer base, combined with an
grow to 42 % (more than 1 billion people) emerging middle class where 100 million
in 2060. Even though this growth is uneven Africans earn su cient income to make 2009 2013 2017
across the whole continent, this trend is purchases beyond their basic needs.
impacting many countries, as L'Oréal Head Africa draws attention from major beauty AFRICAN BEAUTY & PERSONAL CARE
of Africa Middle East zone Geo Skingsley players, from Unilever to Procter & MARKET EVOLUTION [MILLION €]
said in an interview: "What has changed is Gamble and L'Oréal. The top 3 three evolution is fastly growing - 10% per annum
awareness that other parts of Africa now players are all setting ambitious growth 10.526
have an emerging middle class, so the strategies to reach further expansion. 6.935
opportunity becomes much broader". With Unilever's stated objective is to double its 4.246
a 300+ million middle-class segment, the revenue on the continent by 2018 To
African region almost equals its Indian and achieve this growth, Unilever has set up
Chinese counterparts. several strategies. 2007 2012 2017