Key Indicators:
- Annual compound growth rate of 4.6% in South Africa, since 2016.
- Predicted annual growth of 6.6 % for the African continent.
- Retail sector valued at R 27 billion (€ 1.27 billion) in 2017,
- Cosmetic imports amounted to R 2.97 billion (€ 192 Mio.), equivalent to 0,23% of total imports in 2018.
The beauty and personal care market in Africa are expected to grow at a compound annual growth rate of 6.6 % during the period 2018 to 2022. 36 % of the growth in the African cosmetics industry will come from South Africa. Consequently, the South African cosmetics industry has a great potential. In 2017, the value of this sector is estimated to have grown to R27.35 billion (€ 1.78 billion) at retail level and R19.69 billion (€ 1.28 billion) at manufacturing level. While the import of beauty, makeup and skin care preparation products was valued at $218.2 million (€ 192 Mio.), an impressive 14.3 % increase since 2017.
The below graph illustrates the top beauty and wellness products that was imported in 2015. South Africa’s beauty industry has shown significant growth over the past few years as the import rates of beauty, make-up, and sun tan preparations has increased significantly from 2011 to 2015 by 3.14 %. Perfumes and personal deodorants have also proved large growth potentials over the past few years as the imports grew by 5.84 % and 20.69 % respectively.
Demand forecasting
The demand for innovative products shapes the cosmetics industry in South African. That is why, the popularity of multifunctional personal care products has increased. Another major trend is the growing online retailing of beauty and personal care products. All in all, the South African cosmetics industry is vibrant and dynamic, comprising an interesting mix of multinational giants, entrepreneurial companies, and small, medium and large local brands.
In total, approximately 250 companies employing more than 60,000 people operate in the cosmetics industry in South Africa and are widely supported by the “Department of Trade and Industry of South Africa” through their South African Cosmetics Desk and other organizations like the “Cosmetic, Toiletry and Fragrance Association of South Africa” which leads to a very well-regulated industry in South Africa.
InterGest will be happy to assist you with your Southern Africa Venture.
