Despite significant economic challenges including high inflation and a weakening local currency, Nigeria’s beauty and personal care industry witnessed its highest retail sales growth in more than 15 years. According to a new report by Euromonitor International, the formal beauty market in Nigeria recorded an impressive 23 percent increase in retail sales, reaching $1.64 billion in 2022—up from $1.34 billion in 2021.
This growth came amid a backdrop of surging inflation, two recent economic recessions, a severe foreign exchange liquidity crunch, and a depreciation of the naira. Yet, Nigerian consumers—especially women—continue to prioritise beauty and personal grooming, even as they reduce spending in other areas.
Skin Care Leads in a Market Shaped by Necessity and Innovation
The report identifies skin care as the highest-grossing segment in Nigeria’s beauty and personal care market, with a contribution of $382.7 million. Hair care followed with $270 million, deodorants with $242.1 million, and bath and shower products with $229.4 million. These figures suggest that while overall purchasing power may be constrained, the demand for beauty products—especially those perceived as essential—is holding steady.
“The inflationary conditions significantly weakened consumer spending power, leading many to reduce or stop spending on non-essential items,” the Euromonitor report explained. “However, a strong rise in unit prices drove retail value growth, and volume sales continued to be positive.”
The report noted that bath and shower, oral care, skin care, and colour cosmetics remain vital for many consumers, particularly women. These categories saw robust retail volume growth as they are often considered essential for daily grooming and hygiene.
Cheaper and Creative Brands Fuel Growth
As many consumers adjust to economic difficulties, budget-friendly beauty brands have become key drivers of market expansion. Local players and smaller brands are leveraging creativity in pricing and product marketing to meet changing consumer expectations.
Gbemisola Adebayo, CEO of Hegai & Esther Cosmetics, noted that an increasing number of affordable beauty brands have entered the market, bringing pricing innovation and expanding access. “Business isn’t the same as before because of currency devaluation, but it’s the cheaper brands that are driving growth,” Adebayo said. “Most brands are now being creative in their pricing and marketing strategies.”
Euromonitor further reported that although top players like PZ Cussons Nigeria Plc and Unilever Nigeria Plc lost some market share, local and smaller companies gained ground by offering high-quality yet affordable products. Brands such as Zikel Solutions Investment Ltd and Franemm Industries Ltd were highlighted for their successful offerings. Imported budget-friendly brands, like Milani from Milani Cosmetics Nigeria and NOTE from Note Cosmetics Nigeria Ltd, also benefited from the shift in consumer spending habits.
Urbanisation and Demographics Boost Demand
Nigeria’s youthful and predominantly female population presents a promising demographic for continued growth in the beauty sector. With a total population of over 200 million, about 49 percent are women, and over half of those are aged between 16 and 55. This group forms the core of beauty product consumers, especially in urban centers where beauty culture remains vibrant.
According to Uchenna Uzo, faculty director at Lagos Business School, the social and emotional value of beauty products ensures their continued demand—even during economic hardship. “Women will still want to look beautiful no matter how bad the economy is,” Uzo said. “Many beauty products are now priced to fit within people’s earning capacity, especially women.”
He also noted that younger consumers, particularly those financially supported by parents or partners, are increasingly viewing beauty products as necessities rather than luxuries.
Innovation and Product Diversity Keep Consumers Engaged
The report revealed that innovation played a significant role in maintaining consumer interest and driving sales in specific product categories. For example, new brands in the bath and shower segment introduced body washes and shower gels that offer skin exfoliation and lightening effects, aligning with consumer preferences.
These developments underscore the adaptability of Nigeria’s beauty industry in responding to both market demands and economic challenges. “Some product areas have seen strong dynamism during the year as innovative products boost growth,” the report stated.
A major appeal of these new offerings is their ability to combine functionality with affordability, an increasingly important factor in today’s economic climate. This has helped maintain consumer loyalty while attracting new buyers, even as broader consumer confidence remains shaky.
Trade Figures Reflect Growing Sector
Further validating the sector’s growth, trade data from the International Trade Centre show an increase in Nigeria’s imports and exports of beauty and skin care preparations. Imports rose from $19.1 million in 2021 to $21.8 million in 2022, with key import partners including Côte d’Ivoire, China, Poland, Togo, and Malaysia.
Meanwhile, exports also grew significantly, reaching $2.67 million in 2022, up from $1.70 million in 2021. Nigeria’s primary export markets for beauty products include Ghana, Congo, Libya, Mali, and Namibia.
This growing international trade footprint highlights both the domestic appetite for diverse beauty products and the country’s emerging role as an exporter of personal care goods in West Africa.
Economic Strain Remains a Challenge
Despite the positive developments in the beauty industry, Nigeria’s macroeconomic situation remains precarious. The naira’s depreciation—dropping from 305/$1 in 2016 to as low as 448/$1 at the official market and 740/$1 at the parallel market in 2022—has created a liquidity crisis in the foreign exchange market. Inflation climbed to 22.79 percent in June 2023, marking a 17-year high, as reported by the National Bureau of Statistics.
The Euromonitor report noted that high inflation, driven largely by currency depreciation, increased production and import costs, which in turn led to a rise in unit prices across the board. Manufacturers and importers passed these costs onto consumers, straining household budgets and altering purchasing patterns.
Conclusion: A Resilient and Expanding Market
Nigeria’s beauty and personal care industry has demonstrated remarkable resilience in the face of daunting economic pressures. By adapting to consumer needs, introducing affordable and innovative products, and targeting a growing and youthful population, the sector has carved out a path of sustainable growth.
Even as inflation and currency devaluation pose serious risks, the enduring cultural emphasis on grooming and self-care ensures that beauty products remain a priority for many Nigerians. With continued investment in affordable product lines, local manufacturing, and consumer-centric innovation, the Nigerian beauty market appears poised to thrive well beyond 2023.
