Premium Beauty and Personal Care in Nigeria

PROSPECTS

Premium beauty and personal care to grow strongly due to economic recovery

Premium products were hardest hit by falling demand in 2016 and 2017 as economic stagnation led to a shift towards cheaper brands. Non-essentials, especially in colour cosmetics, fragrances and skin care, were also affected by the economic crisis.

Growth of middle and upper income population to stimulate growth

With the middle to upper income population expected to increase over the forecast period and the economy returning to positive growth, premium brands have strong potential, with most Nigerian consumers seeking reputable international brands and being willing to spend more on products which offer an improved appearance. For example, expensive hair extensions are seeing strong sales.

Premium fragrances drive sales in Nigeria

The largest product area in premium beauty and personal care products in 2017 was premium fragrances. Nigerian consumers prefer the very best when it comes to fragrances, with long lasting and intense fragrances being particularly popular.

COMPETITIVE LANDSCAPE

Estée Lauder leads sales

Estée Lauder led sales within premium beauty and personal care in Nigeria in 2017. The brand has a strong presence in premium fragrances and enjoys good recognition.

Forever Living ranks second

The second largest player in premium beauty and personal care in Nigeria in 2017 was Forever Living Products Nigeria. However, the company lost sales share in 2017, with the direct seller being negatively impacted by economic stagnation, particularly due to the fact that its brands are priced in US dollars, with local currency depreciation resulting in soaring prices.

International brands dominate

Premium beauty and personal care is dominated by international brands, which are preferred by higher-income consumers who are willing to pay a premium for higher-quality brands. International players have a comparative advantage with regard to producing high quality and unique products, while also enjoying strong international recognition for prestige brands.

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