As the beauty industry continues to expand globally, there is a growing interest in tapping into the huge market potential in Africa. When navigating market entry strategies, it is important to understand the diversity in the African beauty market. With a population of more than 1.3 billion people in 54 countries, beauty preferences, cultural nuances and purchasing power vary widely. Countries such as Nigeria, Egypt and South Africa have become prominent players and important entry points for new and existing brands, while others such as Kenya, Ethiopia, Senegal and Tanzania are beginning to gain ground.
Recent statistics have highlighted the promising growth of the African beauty and personal care market. According to the industry References, the market is projected to reach $65.93 billion by 2024, with skin care and personal care facing significant demand. Locally, revenue generated in Nigeria’s beauty and personal care market, which is the largest, is projected to reach $9.71 billion in 2024, $7.02 billion for the Egyptian beauty market and 4, $33 billion for South Africa.
Market audience
Penetrating the African beauty market requires a strategic approach. For starters, potential customers and their pocket sizes should be considered. Because Africa is a mosaic of traditions with each influencing beauty ideals and practices, navigating its entry point means catering to its dynamic and diverse consumer base. To thrive, local brands with a deep understanding of their consumers and market audiences would gain traction.
Another critical factor is the changing spending power of African consumers. For example, affordability would become a key factor in product accessibility, making brands that recognize the diverse landscape and offer a range of products that cater to different pocket sizes positioned for success.
Manufacturing and Distribution
Creating hits like this and entering the industry requires a strategic and culturally informed approach to manufacturing and distribution. Adopting local production and developing a different distribution strategy are key elements. “Our test products are currently manufactured in the UK, but since we want to launch in South Africa, we will be working with manufacturers there,” said Eniye Okah, founder of the Nigerian sunscreen brand, Beameshe tells BeautyMatter.
The founder revealed to BeautyMatter that due to exchange rates and shipping costs, the sunscreen products – due to launch this year – could potentially be too expensive for customers if they are made in the UK. This approach is a stark reminder that understanding the financial implications of entering a market is critical to long-term success.
Navigating the African beauty market is not without challenges and a fluctuating economy is one of them. Mansa Adwoa Richardson from Ghana remembers starting her makeup brand, Bareskinn, for just under $200 before branching out into skin care two years later, where she consulted with manufacturers in both the US and the UK. Right now, such an amount would only go so far. “When you’re consulting on a small lot, you could be looking at anything less than £1,000 ($1,200),” Richardson tells BeautyMatter. Regulatory complexities, packaging, cultural sensitivities and logistical hurdles that can create obstacles are many other things to consider.
With shipping and taxation, product regulations and testing standards differ between countries on the continent. In Nigeria, for example, the government ensures that shippers have their Import Duty Report (IDR) numbers and they are always listed on shipping declarations for all import shipments into the country before such declarations are submitted to the Nigeria Customs Service (NCS), which supports the collection of taxes. Meanwhile, in Ghana, tax is calculated on cost, insurance and freight (CIF), which is also paid at the port of entry. Failure to understand the nuances of this could pose a threat and even cause legal issues or product recalls.
However, some of these challenges can be mitigated through thorough, appropriate research. China’s beauty industry has gained international relevance to the global beauty industry, not only dependent on the production of skin care but also on the production and export of affordable packaging materials used by beauty brands worldwide. According to information from MarkWide Research, there has been a growing demand for sustainable packaging as consumers become increasingly aware of environmental issues, leading to a growing demand for sustainable packaging solutions. As countries like China, the US and the UK emerge as global powers experiencing exponential growth in recent years, their relationship with beauty founders in continents like Africa is fundamental to navigating the dynamics of entry points into the beauty industry.
As countries like Nigeria and South Africa continue to prove heavyweights in the continent’s beauty industry, focusing on countries like Kenya, Senegal, Ethiopia and Tanzania presents unique opportunities. Often overlooked, these markets hold untapped potential for beauty brands. Statista notes that in 2024, the Beauty & Personal Care market in Kenya generated $2.3 billion in revenue, Ethiopia generated $5.13 billion in revenue, while Senegal and Tanzania generated $1.1 billion and $3.61 billion respectively. Understanding the market potential of these areas can set brands apart and build a loyal customer base.
Entering the African beauty market requires a nuanced understanding of the diverse landscape, combined with a well-planned strategy that takes into account local preferences and challenges. Whether launching a new brand or expanding an existing one, embracing the richness of the African beauty market can lead to significant growth. By recognizing the unique characteristics of each country and building meaningful connections, your brand can thrive in this dynamic and vibrant market.