Experts in the beauty, cosmetic and skincare value chain have identified partnership, promotion of locally produced products and exchange of ideas among players as part of the strategies needed to deepen participation and growth of Nigeria’s sector valued at over N1 trillion.
Besides, they said improvement in product standards, adherence to global practices and other conditions precedent to scale up expansion of the industry.
Speaking at the opening of Beauty West Africa Trade Exhibition in Lagos, yesterday, its organizer and Managing Director of B2B Events, Mr. Jamie Hill described the event as a global platform for manufacturers, retailers, distributors and others to interact for business expansion.
Being the largest beauty exhibition in Africa, Hill said players in the global sector used it to leverage networks for business expansion thereby contributing to the gross domestic products of their respective countries.
The Trade Exhibition , he noted has created a huge avenue to promote export of Nigerian products within West Africa and other countries.
He said the trade exhibition , offered opportunities for producers of Nigerian skincare products to showcase it to the world and exchange ideas with other global players on the strategies needed to scale up contributions to economic development .
Hill said : “ From the footfalls at the exhibition so far, players across the globe have registered and over 220 companies across the continents have displayed their brands. Significantly, buyers and sellers post Pandemic are now pushing their businesses to drive the growth of the economy. The players are now open to new ideas to help in growing Nigeria’s beauty and cosmetic industry valued over six trillion naira since last year.
“ Such huge market with potential for growth needs to be serviced . Exhibitions are fundamental to economic growth across the globe. Such meeting with buyers and sellers provides avenues for partnerships, knowledge sharing and good business. This will give us opportunity to examine what the markets demands and follow up on it.”
Describing as as a huge frontier market, he said the company will latch on range of products and pricing to harvest significant gains.
Also speaking, Sales Manager, GIVANAS Cosmetics , Ali Roz said , the company will continue to leverage the size of the market to make its products acceptable.
In his remarks, Chief Executive Officer, Cosmopro PVT Limited, Nadeem Akhtar said the company was engaging regulatory body to secure approval for inroads into the Nigerian market for skincare products.
The company, he said was also looking at retailing of its products including surface cleaners,
In Nigeria, the sector recorded a turnover of N1. 034 trillion in the year with mass beauty/personal care controlling 45.5 per cent or N470 billion in absolute figures. Skincare followed with N128 billion. Hair care, deodorants and bath/shower also recorded outstanding performance pooling between N70 and N100 billion in turnover.
Revenue in the Beauty Care segment is projected to reach $85.22 million in 2022.
Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 15.23 percent , resulting in a projected market volume of $173.10 million by 2027.
With a projected market volume of S$14,100.00 million in 2022, most revenue is generated in the United States.
In the Beauty Care segment, the number of users is expected to amount to 37.9 million users by 2027.
User penetration will be 9.9 percent in 2022 and is expected to hit 15.5 percent by 2027.
The average revenue per user (ARPU) is expected to amount to $3.99 million.