Mass Beauty and Personal Care in Nigeria

PROSPECTS

Growing employment among low income earners expected to drive growth

2018 saw mass beauty and personal care register strong demand due to the improving economy, which had a positive effect on 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 as there will be a growing population of low income earners who cannot yet afford premium brands and who therefore prefer affordable mass beauty and personal care products.

Affordable, high-quality mass beauty and personal care products enhances sales

Despite the interest in affordability among consumers, high quality has always also been an important concern for most Nigerian consumers. This has led to leading players such as Unilever Nigeria concentrate on high-quality mass brands in order to sustain leadership and compete favourably with premium brands.

Price promotions key to growth

As the majority of Nigerian consumers constantly seek promotional sales that enable them to obtain more for less, manufacturers of mass beauty and personal care products have been employing this strategy to increase sales, particularly domestic hair care and skin care manufacturers and international brands that are produced locally, including NN Fems Industries and Unilever Nigeria. Price promotions and other price competitive activities are expected as a way of players coping with strong competition over the forecast period and this will inevitably help the category to maintain stable unit price growth (in constant 2018 terms).

COMPETITIVE LANDSCAPE

PZ Cussons leads this category

2018 saw PZ Cussons Nigeria Plc maintain its leading position in mass beauty and personal care due to the wide variety of products it offers across various beauty and personal care categories. However, it lost some value share due to the strong competition it faces and price discounting from other domestic products.

Multinationals continue to lead sales in mass beauty and personal care

The three leading mass beauty and personal care players are all multinational companies, namely PZ Cussons, Unilever and L'Oréal. These top three players are all well-known household names associated with high quality and affordability and which have a fairly strong presence in the key categories of baby care, bath and shower, and hair care.

Growing competition from local emerging brands

Strong growth is being seen in small local brands providing natural products for consumers, particularly in skin care, where Oriki in particular is finding success with its moisturisers. In addition, the strong usage of social media to distribute products and create higher awareness saw major players losing share in 2018, particularly the top three multinationals.

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