Beauty product sales defy Nigeria’s economic woes, hit 15-year high
By Kingsley Odii
In a surprising turn of events, beauty product sales in Nigeria have witnessed an unprecedented surge, reaching a remarkable 15-year high, despite the country’s enduring economic challenges.
According to a report from Euromonitor International, a global market research firm, retail sales of beauty and personal care products in Nigeria’s formal market soared by 23 percent, amounting to a staggering $1.64 billion in 2022, compared to $1.34 billion in 2021.
The findings of Euromonitor International indicate that the beauty industry in Nigeria has managed to defy the prevailing economic headwinds through various factors.
One significant factor is the increasing demand and purchasing power of Nigerian consumers who prioritize personal grooming, fashion and skincare routines. Despite facing financial constraints, many individuals are unwilling to comprise on their appearance, leading to a surge in beauty purchases.
“The inflationary conditions significantly weakened consumer spending power, leading many to reduce or stop spending on non-essential items. therefore, while a strong rise in unit prices drove retail value growth, volume sales were challenge, it posited,” the report said.
Another contributing factor to the dramatic upward trend in the beauty industry as captured by Euromonitor, is the growing population in Nigeria, particularly among the middle class. With a rising number of individuals entering the middle-income bracket, there has been an increase willingness to invest in beauty brands and personal care products. This demographic shift has allowed beauty brands to tap into a larger consumer base, resulting in higher sales figures.
The report further highlighted the role of e-commerce platforms in driving the growth of the beauty industry. The rise of online shopping has made beauty products more accessible to Nigerians, especially those residing in remote areas where physical retail stores may be limited. The convenience of purchasing beauty products online has undoubtedly contributed to the surge in sales.
Prominent Nigerian beauty brands have also played a crucial role in the industry’s success. These homegrown brands have been able to cater to the needs and preferences of local consumers, creating a sense of identity and pride. Additionally, their competitive pricing strategies and marketing campaigns have further bolstered their market presence.
Despite the decrease in consumer spending power, the report noted that there was still positive retail volume growth. The growing urban population expanded the customer base, and strong competition among brands increased the availability of various brands, particularly affordable options.
Gbemisola Adebayo, founder and CEO of Hegai and Esther Cosmetics, stated that although the business landscape has changed due to currency devaluation, it is the cheaper brands that are driving market growth. Many beauty brands emerged in the industry last year, and brands are becoming more creative in their pricing strategies and marketing.
The breakdown of the report revealed that skin care products contributes the most to Nigeria’s beauty and personal care market with $382.7 million. Hair care recorded $270 million, deodorant $241.1 million, and shower $229.4 million.
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