Colour Cosmetics in Nigeria

2020 IMPACT

Rising price sensitivity and home seclusion trend significantly reduces demand for colour cosmetics in 2020

A weak economy and decreasing disposable incomes in 2020 as a result of the pandemic, in addition to the home seclusion trend during the lockdown introduced by the government in an attempt to control the spread of the virus, significantly reduced demand for colour cosmetics in Nigeria. Increasing price sensitivity meant that consumers prioritised their expenditure on essential products such as groceries and hygiene-related items such as medicated bar soap, while ongoing restrictions on social gatherings over the year, depending on the threat level of the virus in certain areas of the country, including major events such as weddings and parties, reduced the need for consumers to purchase new colour cosmetics; many Nigerians tend to only wear these products for specific purposes rather than on a daily basis.

Smaller channels gain share from beauty specialist retailers due to restrictions on trading

While drugstores/parapharmacies, chemists/pharmacies and modern grocery retailers remained open during lockdown as they were deemed to be essential, the dominant distribution channel of beauty specialist retailers was forced to close, while browsing colour cosmetic ranges in the stores that remained open became difficult due to social distancing. Furthermore, specialist retailers in addition to department stores tend to offer make-over services, with an increasing number of Nigerians visiting these stores for their make-up clinics, or beauty salons to have their colour cosmetics applied for them.

Direct sellers struggle due to limited face-to-face consultations

Multinationals continued to lead sales within colour cosmetics in Nigeria due to their extensive product ranges and strong, highly recognisable brand names. Mary Kay retained its overall leadership of the category in brand terms, as it is well-positioned, largely due to its strong presence in lip products and eye make-up, while it is also a major player in the key category of facial make-up, where it sets the pace in foundation/concealer and powder.

RECOVERY AND OPPORTUNITIES

Slow recovery predicted for colour cosmetics

With ongoing restrictions in 2021 and lingering price sensitivity, the recovery of colour cosmetics is expected to be slow, with volume sales struggling to return to pre-pandemic levels by 2025, despite stronger growth momentum building towards the end of the forecast period. Nevertheless, as consumers gradually return to the workplace or socialising, they are likely to place a greater focus on their appearance.

Urban population and greater penetration of female professional employment offer further potential

Strong growth of the young, female, and urban population in Nigeria will help boost demand for colour cosmetics moving forward. Greater penetration of women in professional employment such as banking, real estate, and service industries, will help to boost their incomes and also spur a greater need for colour cosmetics at work.

Social media will be essential to boost brand awareness

The competitive landscape is set to become increasingly dynamic as brands of colour cosmetics attempt to gain consumers’ attention after a weak year for sales in 2020. Increasing awareness of their products’ specific qualities will be vital, and therefore brands are likely to further invest in digital marketing through the use of social media platforms such as Instagram, which will particularly attract tech-savvy younger consumers.