Mass Beauty and Personal Care in Nigeria

PRE-COVID-19 PERFORMANCE

Rising purchasing power among low income workers continues to drive growth

Mass beauty and personal care continues to register strong demand due to the improving economy and rising consumer purchasing power, although economic growth remains sluggish and unemployment is still high. A return to strong economic growth over the forecast period, alongside rising employment, is expected to boost sales of mass beauty and personal care due to the growing population of low income earners who cannot yet afford premium brands and thus prefer affordable mass beauty and personal care products.

Sales boosted by growing availability of affordable and high-quality mass brands

Despite the high level of consumer price sensitivity, high quality has also always been an important concern for most Nigerian consumers. This has led to leading players such as Unilever Nigeria concentrating on high-quality mass brands in order to sustain leadership and compete with premium brands.

Extensive distribution and varied product offering key to success of multinationals

PZ Cussons Nigeria continues to lead mass beauty and personal care sales in Nigeria due to the wide variety of products it offers across various beauty and personal care categories. However, the company has lost some value share in recent years due to strong competition and price discounting from other domestic products.

2020 AND BEYOND

COVID-19 impact

Sales of mass beauty and personal care are expected to decline by 7% in 2020 in 2019 constant value terms in light of the impact of COVID-19. Sales will be impacted by the lockdown seen over mid-March to mid-May 2020, which resulted in many consumers using fewer products as they spent most of their time at home.

Affected products within mass beauty and personal care

The impact of the COVID-19 pandemic will vary considerably across the different product areas in mass beauty and personal care. Products with non-essential positioning and those generally used in order to maintain an attractive and well-groomed appearance will be hit the hardest, with mass fragrances and mass colour cosmetics suffering as consumers spend most of their time at home.

Recovery and opportunities

While 2020 is expected to prove a challenging year for mass beauty and personal care, value growth at constant 2019 prices will normalise by 2021 and remain positive throughout the remainder of the forecast period. Over the forecast period as a whole, sales will see a slight increase, indicating the resiliency of many affordable mass brands.

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