Mozambique: A Growing Market for Cosmetics and Beauty Products
Mozambique is a growing and emerging market for cosmetics and beauty products. Per capita expenditure on beauty and personal care items was $4.10 in 2013 while the average of sub-Saharan Africa stood at $15.10 per annum. This is mainly due to Mozambique’s lower consumer income.
However, the situation is fast improving as natural resource discoveries has put Mozambique under the spotlight – emerging as the second-largest FDI receiver in sub-Saharan Africa in 2012.
The beauty industry in Mozambique is dominated by international brands like Unilever Group, Johnson & Johnson Inc, Colgate-Palmolive Co, Procter & Gamble and Beiersdorf AG.
Mozambique offers potential for the beauty and personal care market. Over the period 2009-2013 the industry grew by a CAGR of 21% and stood at $105 million in the latter year. As the majority of rural population still live on less than $1.00 a day, the main consumers of beauty and personal care products are those in urban areas. They account for one-third of the total population and have higher income and education levels, as well as easier access to public facilities in the cities. Therefore, the major contributor to the industry’s growth is urbanisation, which is at a rate of approximately 3% per annum in Mozambique.
Over 2014-2020 anticipated real GDP growth for Mozambique is even higher than 8% per annum which is above the sub-Saharan average. Since 2010 vast resources of natural gas and coal have been discovered, and along with other natural resources Mozambique possesses, these discoveries will facilitate fast economic growth in the future.
Mozambique’s business environment poses excellent attractiveness in sub-Saharan Africa, and is ahead of such countries as Angola, Senegal and Côte d’Ivoire.
As national resource extraction industries develop in this area, supporting industries such as infrastructure, communications and finance will also receive growing interest from foreign companies boosting the economy of Mozambique.
Moreover, Mozambique has one of the largest and fastest growing populations in sub-Saharan Africa. The current population of over 27 million people is anticipated to reach 30 million by 2020 due to improving life expectancy and high fertility rates. This implies that Mozambique will have a very high consumer base.
In recent years, growth of the beauty, cosmetics and personal care sector was mainly driven by the increased sales of the bath and shower and colour cosmetics categories, which experienced CAGRs of 32% and 25% respectively over 2009-2013. Depilatories, baby and child-specific products together with skin care and men’s grooming remained largely underdeveloped in Mozambique.
Although, Mozambique is relatively less urbanised when compared to other growing sub-Saharan countries, with 32% of the population living in urban areas, urbanisation is set to slowly increase and reach 34% in 2020.
In addition to this, all fast-moving consumer goods are expected to record above-average growth in Mozambique. The market for cosmetics, beauty products and personal care products in Mozambique is still developing, and it therefore has great potential for further market penetration and a wider variety of products. Growing personal hygiene standards and increasing urbanisation are set to fuel the industry’s growth in coming years. The beauty and personal
care market is anticipated to see a CAGR of 18% to reach US$238 million in 2018.