This is a best prospect industry sector for this country. Includes a market overview and trade data.
Ghana plays a significant part in both the consumption and production of products in the $670 billion global beauty industry. Sub-Saharan Africa is experiencing fast economic growth and is home to about 821 million consumers eager to buy a wide range of cosmetics and beauty products. The market leaders – South Africa and Nigeria – are followed by frontier markets Ghana, Kenya, Ethiopia, Tanzania, and Cameroon.
A growing urban population and rising disposable incomes drive increased sales of beauty and personal care products in Ghana. Changing attitudes towards personal grooming, and exposure to global style and fashion trends - thanks to widening internet access – also increase sales. Most Ghanaian suppliers of cosmetics and personal care products engage in both wholesale and retail activities. Many retailers purchase varying quantities of a range of brands and resell them in their various local retail outlets or shops.
The cosmetics and personal care sector in Ghana is competitive and profitable. Generally, producers of cosmetics in Ghana are growing. However, most demand is for imported foreign products, with the most popular products being imported from Europe, Côte d’Ivoire, Nigeria and Togo.
Ghanaian consumers show a preference for products with attractive packaging. While local manufacturers use a wide range of media to market their brands, they still must overcome the local perception that locally made products are inferior to foreign ones. In Ghana, most consumers prefer to buy cosmetics and personal care products from cosmetic shops. Ghanaian consumers are influenced by the quality of the product more than the price.
Further, Ghana is currently the largest exporter of shea butter in West Africa. An estimated three million rural women in Ghana make a small income from shea butter. Ghanaian cosmetics formulator and producer, MGL Naturals, sells its products to the United States on Amazon and is investing in a manufacturing facility in Dallas, Texas.
Opportunities exist in the following areas for the large-scale production of these cosmetic ingredients:
- Shea butter
- Avocado Oil
- Castor Oil
- Mango Butter
- Baobab oil
- Neem oil
A growing number of formulators and manufacturers need supplies of cosmetic ingredients and equipment.
Any American company can import and distribute finished cosmetics in Ghana. Most companies will work with a distributor who will satisfy the regulatory requirements and handle sales in the Ghanaian market.
U.S. companies can register and sell their own products. In such cases, companies must register with the Food and Drugs Authority and the Ghana Standards Authority, depending on the type of cosmetic product.
Contact: U.S. Commercial Service Ghana at email@example.com, or +233 (0) 30 274 1184 for more information about this sector.