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Markets & trends

Is Africa the next Asia?

With one of the world’s fastest growing population and a rising middle class, Africa is sometimes mentioned as the next big emerging market. However, the continent as a whole still lacks advanced infrastructures and is still prone to corruption and political instability. But something new is happening and many cosmetic players are accelerating their investments to expand their footprint in the region’s most promising markets.

In a recent report, Euromonitor International found that Africa will be home to some of the world’s fastest-growing economies in the coming years. [1] According to the market research firm: “Africa’s two largest economies, Nigeria and South Africa, account for nearly 50% of the continent’s GDP in 2017. However, by 2030 these two countries will represent just 37% of Africa’s total GDP, demonstrating the rising economic importance of Africa’s emerging markets.

In the years to come, the continent’s consumer spending will grow faster than the global average. However, this does not mean that all problems will suddenly disappear in the continent: poverty will not be eradicated and consumption levels will remain well below the global average.

Data from the World Bank show that Africa’s middle class is growing everywhere in the continent. It already represents 26M of the population in Ivory Coast, but only 1% in Ethiopia.

Given the continent’s large population and strongly increasing GDP, Africa is set to be the most dynamic region for various industries, which include packaged food, consumer electronics, and beauty and personal care,” says Euromonitor.

As shown by Jean-Paul Dechesne, Worldwide Director Regulatory Affairs at Colgate Palmolive, during Cosmetics Europe’s annual conference, held on June 13 and 14, 2018 in Brussels, the rise in the cosmetics consumption has prompted many African states to adopt regulations aiming at controlling these products, or to consider doing so.

Many African states are regulating - or are on the way to regulate -...

Many African states are regulating - or are on the way to regulate - cosmetic products. © Courtesy of Cosmetics Europe (Click the image to enlarge it.)

While big global beauty brands such as L’Oréal, Unilever, PZ Cussons, Beiersdorf and Procter & Gamble have led the way across the continent, expanding from the two most important African economies (South Africa and Nigeria) to other promising markets such as Kenya, Tanzania, Ivory Coast and Ghana, other international brands are now making significant inroads too.

V.G.

Footnotes

[1Shifting Market Frontiers Megatrend - Africa Rising, Euromonitor International, 2018

© 2018 - Premium Beauty News - www.premiumbeautynews.com
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