This is a best prospect industry sector for this country. Includes a market overview and trade data.
The global beauty industry, according to Euromonitor International, is valued at about US$670 billion
Known as the next consumer hot spot, 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. By 2020, Sub Saharan Africa is expected to have an economy worth around US$2 trillion. East Africa alone is home to over 350 million people, where consumer spending is expected to grow to US $150 billion in 2020. Sub Saharan Africa could be the next big growth region because of its high birth rates and a growing middle class.
The market leaders – South Africa and Nigeria – will be followed by five key frontier markets: Kenya, Ethiopia, Tanzania, Ghana and Cameroon.
Euromonitor International estimates the beauty industry in the Middle East and Africa at about US$25.4 billion – with the market expected to grow by 6.4 percent yearly over the next four years, making the Middle East and Africa the fastest-growing region in beauty and personal care products.
A growing urban population and rising disposable incomes are benefiting sales of beauty and personal care in Ghana. Changing attitudes towards personal grooming, and exposure to global style and fashion trends, thanks to widening internet access are also supporting sales.
In Ghana, most suppliers of cosmetics and personal care products engage in both wholesale and retail activities. Most activity is centered around the central business, and most retailers purchase varying quantities of the various brands and re-sell in them in their various localities.
The cosmetics and personal care products sector in Ghana is competitive and profitable, thanks in part to an influx of new and foreign products on the market. Generally, producers of cosmetics in Ghana show business growth, however, the most popular products are those 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, it is notable that one of the greatest challenges faced by these companies in marketing their brands is overcoming the perception that locally made products are inferior to foreign ones. In Ghana, a majority of consumers prefer to buy cosmetics and personal care products from cosmetics shops. Ghanaian consumers are influenced by the quality of product more than the price.
Ghana is currently the largest exporter of shea butter In West Africa. An estimated 3 million rural women in Ghana make a small income from shea butter.
Opportunities exist in the following areas in the large-scale production of these cosmetic ingredients:
- Shea butter
- Avocado Oil
- Castor Oil
- Mango Butter
- Baobab oil
- Neem oil
There is a growing number of formulators and manufacturers who 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 also decide to register and 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.
UNIDO West African Competitiveness Program