Demand for FMCG and Foodstuff in Africa

With an upwardly mobile population, Africa offers immense opportunities in the FMCG sector...

However, an important issue in the booming personal care sector is the adaptation of Western products to the specific needs of the African consumers. Many renowned international companies have recognised this important aspect, and have either adapted their global products to suit Africans’ needs, or launched new product ranges. (For example, Unilever developed its Motions range of shampoos and conditioners aimed specifically at ethnic hair; make up manufacturers have introduced darker shades; and anti-ageing products have been developed for ethnic skin.) It has also opened up opportunities for local entrepreneurs, with examples including SuzieBeauty Cosmetics (Kenya) and House of Tara (Nigeria).

According to Euromonitor International, the value of the Middle East and Africa region’s beauty and personal care market is expected to grow at 4.25 per cent annually to reach over $35 billion by 2025, with South Africa contributing around $4.2 billion, while Nigeria and Kenya have the second and third largest industries in Sub Saharan Africa, respectively.

On a global scale, toiletries account for around 30 per cent of total sales, skin care and hair care each contributes a further 20 per cent, and make-up and fragrances 10 per cent each. The skin care category saw the biggest increase in its share of the global market between 2015 and 2018, followed by men’s grooming. The category seeing the largest decline in its share over this period was fragrances.

Nigeria: Personal Care Market

The Nigerian personal care sector is dominated by international brand names. Key players in the industry include Unilever Nigeria, PZ Cussons, Soulmate Industries, House of Tara, MAC Cosmetics, and Sleek Nigeria. According to Euromonitor International, personal care categories such as general purpose body care and lip gloss grew rapidly in 2018.

Even stronger growth was seen in developing categories such as shower gels, men’s deodorants, and women’s razors. While demand for the basic products is mainly expected to be driven by population growth, the other categories will rely on increases in disposable income as importers of cosmetics in Africa import increasingly larger quantities to meet the growing demand for cosmetics in Africa.

Hair care products are generally considered to be more essential than other categories of personal care, and has performed well in Nigeria over the past decade, driven by the growing young working female population.

You can also download the database of rice importers in Africa from the Africa Business Pages to reach potential clients in Africa.

Other factors that have supported the sector’s performance are the rise of the internet, and the growing number of Western- style shopping centres in the country. Both of these factors have brought the Western culture to Nigeria’s doorstep.

Meanwhile, the men’s grooming category is also expected to show rapid growth, though from a low base. Demand has increased as the availability of these products improved, which indicates that there was in effect a latent demand for beauty products for men.

Home Care

The global home care market size in 2018 was close to $170 billion. The largest sub-category is laundry care, which accounted for around 53 per cent of total sales. This is followed by surface care (14 per cent), and dishwashing (12 per cent). Due to the lack of modern housing in much of Africa, this ssector is still largely underdeveloped and should expand quickly, driven by increased home ownership, and rising disposable incomes.

Given Africa’s large market and the potential for rising household income, the fast growing FMCG sector on the continent stands to benefit immensely. Given that the sector provides either necessities or accessible luxury goods, the size of the market is not constrained by income dynamics in the same way as many other sectors.

Taking the FMCG sector’s characteristics into account, and considering African countries’ demographic profiles, income levels, and economic growth potential, the following countries have the strongest prospects for growth in the sector over the next five to 10 years: Angola, Ethiopia, Ghana, Kenya, Morocco, Mozambique, Nigeria, Rwanda, Tanzania, Uganda, and Zambia.

Africa Foodstuff Importers Directory: Database of Foodstuff Importers in Africa

In a bid to help foodstuff suppliers find importers, wholesalers, dealers and agents in Africa, the African Business Pages has compiled a special directory that lists foodstuff importers in over 24 African countries. The Africa Foodstuff Importers Directory is now available as a a digital download at a nominal price and has played an instrumental role in promoting direct B2B contact between African foodstuff importers and foodstuff suppliers from all across the world.

The Africa Foodstuff Importers Directory has been adapted for online distribution and is now available in Excel format as an instant digital download from Africa Business Pages. The Africa Foodstuff Importers Directory has served as a useful database for those wanting to export food items to Africa and reach potential buyers in Africa. You can download the directory HERE.