Beauty Products Market
With economic stability predicted to increase in Africa through infrastructural changes in transportation, storage, and import/export standards, US exports to Africa may be something to consider.
Urbanization and purchasing power continues to influence the African economy and society. Reports on Africa’s trade unions are limited since classification systems and regulations differ in each country. As more regulations are enforced, US beauty and cosmetics companies wishing to export to Africa will need to monitor and comply with these changes.
Recently, collaboration on temperature-controlled storage by the Global Cold Chain Alliance has focused its efforts on the African markets. With economic stability predicted to increase in Africa through infrastructural changes in transportation, storage, and import/export standards, US exports to Africa may be something to consider. For beauty products requiring temperature-controlled transportation and storage, if African and GCCA plans succeed, United States beauty, cosmetics, and personal care companies will have the opportunity to explore exports to a region that previously had no reliable methods of exporting its goods into Africa.
Most of Africa’s population consists of lower to middle class incomes. However, many African countries are experiencing an increase in entrepreneurs and labor force. This transition reveals increases in the middle class population, which has a greater disposable income than the lower class population. The demographic in Africa is younger, so cosmetic products geared to consumers under 50 years old will see greater sales than products targeted to elderly consumers.
The US chamber of commerce has found Kenya to be the country of most potential in Africa. This potential is measured by its current market size, but Kenya has also actively initiated plans that aim at long-term economic advancement. The changes will better suit consumer demands of the growing middle class that is expanding from agricultural markets as a result national wage increases.
As more US beauty and cosmetics companies export to Africa, they will need to concentrate on value, offering consumers the highest quality while still remaining affordable to the lower-middle class. Products that have more than one feature will achieve greater gains than specialized products that have a high cost with fewer functions.
Previous financial and market limitations have deterred many US companies from exporting to Africa. Now, African nations are doing their part to support an increase in economic and trade opportunities for international investors. Investors who have products with an emphasis on health, organic, and fresh ingredients may have more success, especially in the more urban areas, which contain the majority of African residents with disposable incomes. Africa is a generally untapped market to beauty and cosmetics companies, which could mean unlimited potential for businesses that take careful consideration of consumer needs.
Companies intending to export to Africa should be willing to place heavy investments on research and development before carrying out any export strategies. Above any of the other goods exported to Africa, beauty and cosmetics companies will have to take skin tone and environment into consideration. The climate is very arid and sunny, making many of the top cosmetic concerns focused on moisture and correction of dark spots in the complexion. Skin tones in Africa also include darker tones than what is usually offered to European and North American markets. The key to success in African markets for beauty and personal care products will be to adapt existing products to cater to the consumer demographic, develop exclusive brands or products to meet distinct consumer needs, and design specific branding and packaging to appeal to the fresh market.
